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WEST HAZLETON – By a 4-2 vote, borough council on Thursday approved the 2008 budget, which includes a 1/2-percent earned income tax hike, and narrowly approved some other initiatives with Mayor Mark Rockovich casting three tie-breaking votes.
Council also voted 4-2 to increase the monthly parking permit fee from $10 to $15, and voted 3-3 – with Rockovich voting yes to break the tie – to increase the annual handicapped parking permit renewal fee from $10 to $20.
Council members Julie Ehlers, Karen Reynolds and Bill Sharkey voted to approve all the ordinances and resolutions.
Councilmen James “Bucky” Kulaga and Mark Yeager voted against approving the budget, the earned income tax and handicapped parking permit increases, the amended Act 47 financial recovery plan and the $52 Local Services Tax (formerly the Emergency and Municipal Services Tax).
Councilwoman Kelly Feltes joined Kulaga and Yeager in voting against the earned income tax and handicapped parking permit increases, and she joined Yeager in voting against increasing the monthly parking permit fee.
Council’s Finance Committee, consisting of Ehlers, Reynolds and Sharkey, worked with the Pennsylvania Economy League to prepare the budget and financial recovery plan because the state awarded the borough financially distressed status in 2005, and the PEL helps such municipalities regain fiscal stability.
Gerald Cross, executive director of the PEL’s Central Division, had said the earned income tax increase was necessary to assure a balanced budget, covering the costs of increased police coverage and code enforcement, rising costs of other services and commodities and the loss of certain revenue.
The new 1.5 percent earned income tax rate will remain in effect for two years and then decrease to 1.25 percent in 2010.
Kulaga said he voted against the earned income tax increase and budget because council “could have juggled some numbers” to avoid it. He voted against the four-year recovery plan because it relies on a revenue increase from a Luzerne County property tax reassessment that could be delayed.
Yeager voted against the earned income tax increase because he didn’t think taxpayers could afford it, and against the handicapped parking increase because the handicapped “don’t need to suffer any more than they already are.”
Feltes left the meeting before a reporter could talk with her.
Rockovich also cast a “no” vote to break a tie on a motion to retain Louis Correale as borough representative to the Greater Hazleton Joint Sewer Authority board. Feltes, Kulaga and Yeager voted for his retention.