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PILOT payments eyed again

By RICH HOWELLS
Feb 19

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SCRANTON – City Council President Janet Evans called upon the city’s colleges, universities, and non-profit organizations to pay their “fair share” in payments in lieu of taxes to aid the cash-strapped city at council’s Feb. 16 meeting.

Citing a Feb. 12 Associated Press story, Evans pointed out that Scranton is not the only city seeking such payments. Providence, R.I. Mayor Angel Taveras recently asked the city’s largest employer, Brown University, to increase its annual voluntary payments of a few million dollars to help pay down its roughly $22.5 million deficit and avoid bankruptcy.

The current four-member “supermajority” on council made the solicitation of PILOTs from non-profits a priority of their first two years in office, increasing payments from $100,000 in 2009 to over $200,000 in 2010 and 2011. Council was successful in increasing the University of Scranton’s annual $110,000 contribution to $175,000.

Noting that many give no money at all to the city, Evans feels that the supposed contributions made by large tax-exempt organizations, such as aesthetic benefits and the economic impact of students, are not enough to make up for the amount of valuable taxable properties “devoured” by these institutions.

“As long as tax-exempts remain protected by laws that benefit them exclusively, they will continue to shamelessly ignore their financial responsibilities to their host cities. Meanwhile, more than a few Pennsylvania cities continue to teeter on the verge of bankruptcy while providing public safety and DPW services to powerful tax-exempts,” Evans said.

She called on municipalities and their state representatives to remedy this as well as the Pennsylvania Economy League, Scranton’s Act 47 distressed status coordinator, and the state Department of Community and Economic Development to actively assist distressed municipalities by “vigorously pursuing fair-share PILOT payments” and “aggressively lobbying the state legislature to remedy this financial injustice.”

Evans also mentioned that the Scranton Parking Authority is seeking to become tax-exempt and authority solicitor Paul Kelly, Jr. is exploring whether or not its property would qualify. She believes that Kelly’s actions on behalf of the SPA are “in direct conflict with his duties and responsibilities as city solicitor” and this “conflict of interest” should force him to resign one of these two positions “immediately,” sending a letter addressing the issue to Mayor Chris Doherty.

Council Vice President Frank Joyce said the exit conference for the long-delayed 2010 city audit by Robert Rossi & Co. was held earlier that day and the completed audit would be available to the public late Friday. The audit was due May 31, 2011, as per the Home Rule Charter, but outstanding documents from several city departments postponed its completion.

In other business, council unanimously approved a second reading of improved rental registration legislation and a second reading of legislation that will allow delinquent tax collector Northeast Revenue Service, LLC to expand its collection services to include the collection of delinquent refuse fees for the city, along with a slight amendment that would leave collection of current refuse fees in the hands of a clerk in the Treasurer’s Office who already performs this duty.

Council agreed that they would also amend the rental registration legislation before final passage, citing unclear language and possible legal loopholes.

Additionally, council unanimously introduced an ordinance that will transfer $14,103.92 from a 2006 Tax Anticipation Note into the city’s general fund. They will seek answers on why the money was not transferred earlier and if any other past TAN money has yet to be transferred before final passage of the legislation.

Councilman Bob McGoff was absent from Thursday’s meeting.


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