Dallas City News

A proposal is up for discussion Tuesday to use Luzerne County’s remaining $4.5 million in federal American Rescue Plan Act interest earnings to replace two bridges and avoid a 2025 county tax increase.

Pushed by County Councilman Jimmy Sabatino, the proposal would earmark a total $3.1 million to repair two county-owned bridges — the Sleepy Hollow Bridge in Butler Township ($1.2 million) and the Harris Hill Road Bridge in Kingston Township ($1.9 million). Council’s Infrastructure Committee, chaired by Sabatino, unanimously voted last week to recommend both spans to council for funding.

Sabatino said the remaining $1.4 million and any future American Rescue interest earnings should be applied to next year’s budget, in part to help compensate for the loss of real estate tax revenue from the Wyoming Valley Mall in Wilkes-Barre Township.

The mall’s assessment plunged from $68.7 million to $13.6 million through court-level appeal negotiations with taxing bodies. Attorneys involved in the case said the new assessment reflects a nationwide value drop in many traditional shopping malls.

Mall owner Wyoming Valley Realty Holding LLC will pay a total $375,201 in school, county and municipal real estate taxes under current rates, which is a reduction of $1.5 million, analysis shows. The county’s receipts from the property will be $350,000 less.

Taxing bodies also are collectively bracing for a potential loss of more than $1.9 million annually due to the nonprofit WoodBridge Healthcare Inc.’s planned purchase of the for-profit Commonwealth Health, which includes the Wilkes-Barre General Hospital, officials said. The county receives approximately $328,000 in taxes annually from these properties.

Sabatino noted the county will start receiving additional tax revenue in 2026 from several commercial properties with breaks that expire that year.

He personally believes small tax hikes should be implemented the next three years, as opposed to one higher increase, but said it is highly unlikely a council majority would support any increase because their opponents would use such a vote to attack them if they run for re-election.

“We just need a little stop-gap measure to get us through,” he said of the American Rescue interest.

County Manager Romilda Crocamo had announced last month she won’t be requesting a real estate tax increase for 2025 and has advised managers to freeze spending requests in their upcoming budget submissions.

Crocamo said Monday she fully supports Sabatino’s proposal. In addition to the shopping mall revenue loss, the county must find an additional $1.9 million to cover capital project needs in 2025, including a courthouse sewer repair/replacement estimated at $1 million.

Council is to be commended for distributing tens of millions of dollars to outside entities, including municipalities and private organizations, to strengthen local communities and support essential services, Crocamo said.

“As we look toward the future, it is crucial for the council to consider earmarking the interest income generated from these funds for internal county projects,” Crocamo said. “With budget shortfalls projected for 2025, this strategic move would not only provide necessary financial relief but also enhance our capacity to deliver vital services to our residents.”

Allocating remaining funds toward internal projects and budgetary constraints will ensure the county “continues to operate efficiently and effectively,” she said.

“The administration encourages the Luzerne County Council to take this important step in securing our financial future and supporting the needs of our residents,” Crocamo said. “Together, we can build a stronger, more resilient Luzerne County.”

Council is set to discuss the proposal during the work session, which follows a 6 p.m. voting meeting at the county courthouse on River Street in Wilkes-Barre. Instructions to attend remotely are posted under council’s online public meetings link at luzernecounty.org. A vote would be required at a future meeting for the American Rescue interest proposal to take effect.

Sabatino said the stone arch Harris Hill Road Bridge and steel truss Sleepy Hollow Bridge were recommended because their closure has negatively impacted traffic patterns in their areas.

The Sleepy Hollow Bridge was added to the state’s Transportation Improvement Plan for future funding, which means construction must wait until 2027 unless other funding is identified.

The infrastructure committee also includes Council members Harry Haas, Patty Krushnowski and LeeAnn McDermott.

During last week’s meeting, McDermott said both bridges must be addressed.

“I agree. This should have been done yesterday,” Krushnowski said.

Haas said the most frequent complaints he receives are about county infrastructure in bad shape, although he noted the county also gets blamed for the condition of state and municipal roads that are outside the county’s control.

Reach Jennifer Learn-Andes at 570-991-6388 or on Twitter @TLJenLearnAndes.