No tax hikes in W-B City budget: The $41.1 million spending plan contains no increases in taxes or city fees.

What a difference a year makes.

At this time in 2008, Mayor Tom Leighton announced he was raising taxes in the city by 31 percent and increasing the earned income tax and some city fees.

On Thursday, Leighton said that despite many challenges facing his administration, the 2010 budget will increase by less than 1 percent over the 2009 version and will contain no increases in taxes or city fees.

The $41.1 million spending plan was detailed during a press conference Thursday afternoon at City Hall.

"Last year, when I stood here to present the budget, I predicted that 2009 would be one of the most fiscally challenging years of my administration," Leighton said. "Unfortunately, my predictions were correct."

In 2009, the mayor placed most of the blame for the increase on the nearly $1 million arbitrator's award to the city's firefighters. He said the case remains under appeal, but he said the money is in the city's general fund should the city lose the case. An arbitrator ruled the city must pay roughly $1 million to the firefighters for not providing equal pay compared to the police officers. That decision was upheld in county court.

The 2009 budget had a $2.6 million shortfall, and as a result the city's property tax rate increased by 23 mills to 96.53 mills. A mill is a $1 tax for every $1,000 of assessed property value.

Leighton said at the start of 2009, the city was faced with a reduction in real estate transfer tax, a large increase in health insurance premiums, and a reduction in the local services tax. He said the challenges were significant enough without the national downturn in the economy adding to the city's problems.

"We took steps to decrease spending by evaluating every expenditure," he said. "We increased the productivity of city employees; they are working harder and accomplishing more each day."

Leighton said he expects another reduction in earned income and local services taxes in the 2010 budget due to the rise in unemployment in the area. And he said he is predicting decrease in the mercantile tax revenue.

Leighton said he has made staff reductions wherever possible, reducing the overall number of city employees from 299 in 2009 to 295 in 2010, while increasing the number of police officers.

But while cuts have been made, Leighton said the city's expenses continue to rise.

"Salary expenses will increase an average of 2.6 percent next year," he said. "Employee benefits will increase by 6.9 percent. Liability insurance costs are anticipated to increase significantly."

Leighton talked about several projects that have begun and/or completed since he took office in 2004. He cited the third phase of the $7.3 million dollar Downtown Streetlight and Streetscape project, adding 117 new lights on Union, Washington, Northampton, and Franklin Streets.

He said the completion of the $25 million Intermodal Transportation Center on South Washington Street is near, removing public transportation from Public Square and creating parking for businesses.

Leighton praised the $14 million restoration of Coal Street Park, bringing ice skating back to the city. A new $225,000 playground has opened at the park and the Wilkes-Barre/Scranton Penguins use the facility for practice, along with youth teams from other areas.

Leighton said the Movies 14 theater complex brings in nearly 500,000 people a year to the downtown and the second phase of the project has just begun creating 21 modern condominiums. The South Franklin, Waller, Regent and Barney Street bridges were replaced at a total cost of $10.6 million dollars, reopening easy access to these South Wilkes-Barre neighborhoods. The city is about to enable a $2.1 million citywide camera surveillance system.

"The economy is slowly recovering and we are hopeful that by the end of 2010, we may start to see that recovery reflected in lower unemployment rates that should naturally increase our tax revenue," Leighton said. Leighton said he has an aggressive agenda planned for 2010, including the $23 million expansion of Coal Street roadway; the next phase of the Downtown Streetlight and Streetscape project -- a $1.3 million dollar beautification of South Main Street from Northampton Street to Public Square; development of the Murray Courtright complex; more paving in 2010 than in any other year; and replacement of the Sidney Street bridge at a cost of $2.6 million.