SHAMOKIN - More than two weeks have passed since the city's preliminary Act 47 plan was unveiled, with 120 initiatives proposed to keep Shamokin out of bankruptcy.
Tonight, the public gets its opportunity to weigh in.
A town hall-style meeting begins at 6 p.m. in the auditorium of the Northumberland County Career and Arts Center, Eighth and Arch streets. City and state officials are expected to be joined by the plan's authors to provide details and answer questions about the financial recovery strategy. The plan is available for review at www.shamokincity.org.
Sweeping changes to employee pay and benefits are recommended to avoid more than $4.4 million in cumulative debt by 2020. If the plan is to work, the city must not only cut spending and boost revenue, it must also change to a Home Rule form of government, which would need voter approval.
Plan initiatives include freezing employee pay, capping the cost of health benefits, eliminating or scaling back pensions, and maintaining an increased Earned Income Tax at 1.5 percent. The police department is recommended for radical overhauls, including closing four hours overnight when call volume is found to be at its lowest.
Shamokin was accepted in June into Act 47, the 28th municipality to enter the state's recovery program since its creation in 1987. The plan was prepared by consultants from Pennsylvania Economy League, Stevens & Lee and Financial Solutions on behalf of City Hall and the state Department of Community and Economic Development. It is in a preliminary stage and needs final approval of the city council and a county judge.
The city has been operating at an average deficit of $362,600 the past six years, about $2.2 million total. Revenue grew at 10 percent during that period, but couldn't keep up with expenses, which grew at 15 percent. A $1.1 million emergency loan kept the city afloat last year. Should no changes be made, the average annual deficits will balloon to $738,700 over the next five years.