Wilkes-Barre’s finances affected by coronavirus, reports postive mid-year balance

WILKES-BARRE — Halfway through the year, the city posted a positive balance, but it would have been better without the COVID-19 pandemic, Mayor George Brown said Monday.

With six months on the books, the city recorded a balance of $7.46 million, according to a draft of the June financial report. Revenues were $26.9 million and expenses totaled $19.44 million, the report said.

The balance was $684,919 less than the June 2019 figure and Brown attributed it to the effects the novel coronavirus on the economy.

The city has been operating on Brown’s $51.96 million balanced budget for 2020 and was expected to have a good year before the virus outbreak, he said.

However, the shutdown ordered by Gov. Tom Wolf to mitigate the spread of the coronavirus forced businesses to either close or cutback their services and kept some people at home rather than at their workplaces in the city.

“We do have some lost revenue,” Brown said of the draft report.

The city collected $54,241 in parking ticket fines, off $61,774 from last year. For the year, the city budgeted $375,000 for parking violations.

The parking meters brought in $167,273 or 22% of the $750,000 budgeted. The revenue was $170,233 less than for the first six months of 2019.

The city collected $10.14 million in property taxes or 87% of the $11.55 million budgeted for the year. Compared to 2019, collection of the city’s second largest revenue source, was down $621,019, according to the draft report.

The deadline for tax payments was extended to accommodate for the shutdown and give property owners more time to pay without being penalized.

The largest revenue source, the Earned Income Tax, was $7.34 million or half of the budgeted $14.64 million. The collection was $190,428 ahead of the same period for last year.

Building inspection permits and fees were down as construction work deemed non-essential by the state stopped during the shutdown that was eventually lifted in June. The city collected just $225,751 of the $2.4 million budgeted for building and electrical permits.

On the expense side, the city paid $229,505 in landfill tipping fees or nearly 46% of the $500,000 budgeted for the year. The half-year total was $15,311 more than last year, according to the draft report.

Recycling tipping fees were $36,923 higher than last year. The city paid $113,821 or 65% of the $175,000 budgeted.

The city attributed the higher costs to people at home because of the shutdown and putting out more trash.

As salaries and overtime that could be directly attributed to the pandemic mounted for the city, it started to itemize the expenses with the anticipation of being reimbursed by either the state or federal government. Through June 30, the city reported $505,497 in COVID-19 expenses.

Luzerne County’s share of emergency federal coronavirus aid to be distributed by the state was $28 million, Brown said.

“I’m hoping we get some of the money,” Brown said.