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By JOLYN RESNICK [email protected]
Thursday, December 07, 2000 Page: 13A
WILKES-BARRE – Mayor Tom McGroarty says the city faces a $500,000 hole in
its $34 million budget.
And he blames City Council for at least $350,000 of it.
In a memo to council, McGroarty wrote that council members “voted for the
budget, but never followed through on some of their responsibilities for
funding.”
In particular, he said council reduced property taxes by more than $200,000
through tax abatements in the 2000 budget but “never replaced the revenue.”
McGroarty also chastised council for failing to sell the Shapiro scrap
yard, even though he brokered a deal and requested council expedite the sale.
He said the sale of the abandoned property would have brought the city
$150,000 and relieved the city of environmental concerns.
Council wants $320,000 for the land, the amount for which it is appraised.
Any cleanup of the site would be deducted from the price.
Also, the mayor said the city has not received in-lieu-of-tax payments from
Wilkes University, King’s College or Mercy Hospital. Although educational and
medical entities are tax-exempt, they voluntarily give.
McGroarty said King’s and Wilkes each owe the city $40,700 and Mercy owes
$37,500.
Councilman Tom Leighton said he’s been in touch with the schools and the
hospital and has been told in-lieu-of-tax contributions are usually not made
until the end of the year.
McGroarty also said the city has sold fewer blue garbage bags than expected
this year, with sales falling $60,000 behind budget. Bags cost residents $1.25
each.
He said the fiscal woes are exacerbated by rising health-care costs that
will force him to eliminate “projects, personnel and purchases.”
Council must vote on McGroarty’s proposed 2001 budget by Dec. 31.
Jolyn Resnick, a Times Leader staff writer, may be reached at 829-7210.