Proposed Luzerne County budget amendments planned

Even though no real estate tax hike is proposed, Luzerne County Council members Tim McGinley and Gregory S. Wolovich Jr. huddled in the county courthouse Monday looking for cuts that can help boost the 2024 budget reserve.

The two council members said they’ve each spent hours poring over the budget and met several times to review possible cuts.

“We can’t just rubber stamp it,” said Wolovich, who has an accounting degree. “A zero tax increase is great, but there’s always room for improvement.”

McGinley said he wants to free up more funds in case the county is hit with an unforeseen expense.

“We must get the reserve up to where it belongs and try to rightsize the budget in all areas so we don’t have a big surplus or deficiency,” McGinley said.

Council is set to vote on the budget adoption Tuesday night, which would include a decision on budget amendments.

All proposed budget amendments have been distributed to impacted departments so they have an opportunity to provide a response, county Manager Romilda Crocamo said.

County District Attorney Sam Sanguedolce said Monday he is preparing a response regarding several cuts that have been proposed in his office.

McGinley estimates the alterations he and Wolovich are proposing would add $175,000 to $200,000 to the reserve.

The proposed $164.5 million budget contains a $255,000 reserve, which is $10,000 higher than this year’s initial budgeted allocation.

The pot of money for unforeseen emergencies had been $1.23 million in 2022, but a council majority reduced the 2023 reserve to $245,000 to help keep the real estate tax increase below 3%. Council subsequently boosted the contingency to more than $615,000 with transfers from an unemployment compensation dividend and state special election reimbursement.

Council later agreed to use some reserve funds toward courtroom repairs/upgrades and law division litigation settlements.

McGinley and Wolovich said most of their proposed budget cuts are several thousand dollars or less.

“There are not any major reductions anywhere,” McGinley said. “I don’t think there will be major resistance.”

The largest would be approximately $100,000 in health care allocations associated with vacant positions, the council members said.

Under the proposed no-tax-hike 2024 budget, the county millage rate will remain at 6.3541. To figure out the tax payment, property owners must divide their assessed value by 1,000 and multiply it by the millage rate. For example, the owner of a $100,000 property pays $635.41 in county taxes.

Tuesday’s council meeting starts at 5:45 p.m. with a public hearing on a $3 million award for a hotel/convention center project at the former Hotel Sterling site on the corner of River and Market streets in Wilkes-Barre.

H&N Investment requested $3 million toward its $36.36 million project to construct a Gateway Hyatt Place Hotel and Conference Center.

During the 6 p.m. voting meeting, council is scheduled to decide on the $3 million Sterling site award in addition to adopting the county budget.

The meeting is at the county courthouse on River Street in Wilkes-Barre, with instructions for remote attendance posted under council’s online meetings link at luzernecounty.org.

In the work session following the voting meeting, council is set to hear a presentation on Valley Crest Real Estate LP’s request for a tax break to help complete a commercial/retail project at the former county Valley Crest nursing home site in Plains Township.