LACKAWANNA, N.Y. (WKBW) — A packed room at City Hall in Lackawanna on Thursday, as neighbors awaited answers on a double-digit tax increase proposal.
A 23.6% tax levy was proposed in the Mayor's proposed city budget.
The Lackawanna City Council amended the tax levy Thursday night, to 4.6%. This amendment has saved Lackawanna neighbors hundreds.
The current tax rate for the City of Lackawanna is $16.75 per thousand.
The mayor's proposed budget was $20.53 per thousand, which was $3.78 more than the current tax rate, or a 23.6% increase.
The council decided to amend the mayor's proposed budget and decided the new tax rate would be $17.52 per thousand, which is $0.77 more than the current tax rate, or a 4.6% increase.
So instead of a $3.78 (23.6%) increase, the tax rate will increase by $0.77 (4.6%), starting August 1.
Under the mayor's proposed budget, the tax levy would have been approximately $15.8 million, compared to the current tax levy of approx. $12.8 million.
In total, according to Lackawanna Marketing & Public Information Director Chuck Clark, the council reduced the mayor's proposed tax levy by approximately $2.3 million. Now, the tax levy is at approx. $13.5 million.
Some residents told 7 News' Pheben Kassahun they were hoping for no increase at all.
"Certainly, we want to have it at zero. It should had never even taken place. If there was the appropriate planning, and the administration didn't have such wasteful spending, we wouldn't be here today," Lackawanna resident Lynette Sikorski explained.
Sikorski started a petition Monday night, after learning of the proposed 23.6% tax levy increase. She said she collected almost 1,400 signatures ahead of Thursday's budget vote meeting.
"I saw the commentary online and I had to take stance. I had to help the community," Sikorski said. "When the council president started his speech, he did recognize the fact that the community had stood up and worked together. I really do think that contributed to where we are today."
Kassahun spoke with Clark, after the meeting via phone, who said the reason for the increase is that the city is dealing with three main issues:
1. Loss of money from the January snowstorm and pandemic aid.
2. Increasing labor union contracts; 90% of the budget is locked in by negotiated union contracts. Negotiated contract raises are expected to go up by 3.5% in the new fiscal year.
3. The city did not receive FEMA aid or county money during the January storm so the city spent ~$1.9 million.
According to Clark, the mayor had to increase the tax levy to maintain city services and to avoid layoffs to city personnel (i.e police, fire, streets and sanitation employees).
However, because there will be no layoffs, there will not be new fire or police academy classes and neither will there be new hires.
Lackawanna resident Jeffrey DePasquale said, "What I am satisfied with is the council working together, doing their due diligence, and reducing it from 23 to 4. Do I like the 4, no. But is it better than 23%, absolutely. Now, the council and the mayor need to get together for next year to not only not have an increase but a decrease."
But residents like Valerie Brillhart said this tax increase is a tough pill to swallow.
"They still don't listen to the people," Brillhart said. "The worst thing about this meeting is they had no input. They didn't allow any of the residents to speak."
The full 15-minute meeting can be found on the city's Facebook page below:
