EASTON, Pa. – Easton Mayor Sal Panto unveiled a proposed 2023 city budget that will mark another year with no property tax increase for residents.
The budget for the next fiscal year is roughly $71 million.
In addition to not raising taxes, Panto said a key component of the recommended budget is that it also doesn’t raise the city's debt obligations.
- The proposed city budget would keep a long streak of no new increased taxes for city property owners
- Mayor Sal Panto said city may need to consider selling Easton Suburban Water Authority plant or re-negotiate lease
- Easton looks to ensure increasing city pensions will be covered
The budget also would keep sewer rates at the level they have been since 2009.
The city’s last property tax increase, also in 2009, which the mayor noted was unpopular, helped cover city pension plans. Panto said with that in mind, the budget looks to increase city revenues from economic growth rather than raising taxes.
“You raise your economy by adaptively reusing all of the facilities that we have in here,” Panto said. “All the empty lots that were destroyed by every renewal, all the buildings that were blighted that are being turned into ongoing and very good businesses.”
Panto cited help from The American Rescue Plan Act along with grants as a major factor in shaping the 2023 city budget.
“After a lot of lobbying, this city was awarded its share of 20.6 million,” Panto said. “The proposed budget does not allocate any of the funds, the city council remembers that we used 10 million dollars for revenue replacement of those funds during the pandemic.”
Valuing of Assets
While the city has minimized debt to city pension plans, Panto said the general fund has a “mandatory municipal obligation of $8 million.”
“No matter how much we raise our economy, we have unsustainable pension plans,” he said.
In order to address the issue, Panto said the city will continue to “negotiate more cost effective benefits and efficient benefits for our police, fire and employees.” In addition, he said the city will re-evaluate city assets such as its lease with Easton Suburban Water Authority.
The operation of the Easton Suburban water authority is excellent, Panto said, however, the city will look into a sale or possible new lease agreement. The water authority is owned by Easton and has been leased by the city.
“A reasonable 20-year lease on a $200 million valuation should result in the annual lease payment of 7.25 to 14 million dollars here.”Mayor Sal Panto Jr.
A value report has found that the city’s water assets may be $200 million if the city sold, Panto said. The city also may look into renegotiating the lease for the city’s water assets, he said.
“A reasonable 20-year lease on a $200 million valuation should result in the annual lease payment of 7.25 to 14 million dollars here,” Panto said.
Future Developments
Easton restaurant owners have shared that they are attracting patrons within a 75-mile radius, Panto said. The city is looking to find ways to increase revenue from out-of-town visitors while not increasing the load on residents.
On the docket for 2023 also may be a re-evaluation of parking meters within the city, he said.
Panto also said new gas lines and gas mains are coming to West Ward.
“Last year was the south side. UGI was putting in all new mains and this year, College Hill, [and] next year's the West Ward,” Panto said. “Although we may not like it, it's happening in our lifetime. It has not happened in the last 40 or 50 years.”
The city also plans to maintain current public safety service levels, he said. The recommended budget leaves two firefighter positions unfilled, but the mayor noted to council members that in the past year three firefighter positions were filled, leaving a deficit of one unfilled position.
