Wilkes-Barre Mayor George Brown addresses the public, members of council and other city officials during the unveiling of his 2025 budget.
Margaret Roarty | Times Leader
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WILKES-BARRE — Mayor George Brown’s proposed budget for 2025 contains no tax or fee increases, despite the city facing several financial hurdles going into the new year, the mayor announced Tuesday during a budget address at City Hall.
The spending plan, including revenue and expenditures, totals $58.46 million, which represents a 7.7% increase from this year’s budget of $54.25 million.
Major financial challenges cited by Brown include an 11% increase in employee health care costs and the potential loss of nearly $750,000 in annual real estate tax from Commonwealth Health’s General Hospital due to the pending sale of Commonwealth Health facilities in Wilkes-Barre and Scranton to non-profit Woodbridge Healthcare.
Woodbridge announced the acquisition of Commonwealth Health and its three main hospitals — Wilkes-Barre General Hospital, Regional Hospital of Scranton and Moses Taylor Hospital in Scranton — on July 30 for $120 million.
The organization was recently approved by city council for $180 million in tax-exempt bonds to be issued by the Wilkes-Barre Financial Authority to purchase the facilities and make capital improvements.
While Brown’s budget does account for the loss, Woodbridge’s tax exempt status remains up in the air.
According to previous Times Leader reporting, a 501c3 is not automatically tax exempt just because it’s a nonprofit and there are several established mandates that the organization would have to meet in order to acquire that status.
The county assessment appeals board makes the initial determination on exemption requests, and its decisions are subject to appeal to the county Court of Common Pleas and, if desired, to higher courts, the article stated.
Nevertheless, Brown listed several investments in the city that are expected to offset the potential loss of revenue by increasing construction and permit fees.
That includes the expansion of the Wright Center for Community Health’s campus on North Pennsylvania Avenue, which would add 45,000 square feet to the existing medical clinic to include a community center and educational component for students and faculty.
That expansion is currently listed on Wilkes-Barre’s Zoning Hearing Board agenda for its Wednesday meeting, as the Wright Center will be seeking a special exception and variance for the project.
Other investments include renovations of Meyers High School, which is expected to be turned into 103 apartments and retail space, purchase and development of the First National Bank Building on Public Square and Sphere International’s development of its multi-use property located at the corner of South Main Street and Northampton Street.
Additionally, Brown stated that this administration will continue to significantly cut expenses in employee overtime and contract work, as it did in 2024.
Financial highlights
According to the proposed budget, which will have to be voted on by council, Brown anticipates $11.25 million in property tax revenue, which represents a 3.8% or $450,000 decrease from this year’s income of $11.7 million.
However, Brown expects to offset that loss by an increase in earned income tax, which he said, “represents an increased population, employment and business wage increases in the city.”
The proposed budget shows a $1.85 million increase in income tax as well as a $252,500 increase in total business taxes.
Additionally, Brown anticipates revenue from licenses and permits, including liquor licenses, game machines, restaurants and more, to increase by $27,500.
According to the mayor, this past year saw 27 new brick and mortar restaurants and retail food locations as well as 12 new food trucks open in the city.
Revenue from state grants is expected to increase as well, as the budget reflects an increase of $469,062 in state pension aid, bringing the total to $2,987,636.
2024 year highlights
Also during Tuesday’s address, Brown toted several upgrades to the city’s parks and infrastructure in 2024 and gave a brief overview of projects still in the works and what the public can expect going into 2025.
“I intend to work even harder this year to continue the city’s revitalization and long-term fiscal stability,” Brown said.
According the mayor, his administration paved four streets this year and patched a total 173 potholes.
Additionally, improvements in flood protection were made to Solomon’s Creek and the Brookside Levee. Combined, the upgrades cost $2.6 million.
The city also partnered with several local organizations in 2024 to help finance a number of projects including sewer remediation in Kirby Park and additional street paving.
Going into 2025, Brown said his administration will to focus on quality of life initiatives and staffing of fire, police and the department of public works will continue to be a priority.
The mayor added that his administration is the final design phase for construction of a special needs playground at the Bog.
The full proposed budget for 2025 can be viewed on the city’s website.