Shamokin seeking extension for Act 47, considering suing Northumberland County over reassessment

Dec. 15—SHAMOKIN — The city of Shamokin is seeking an 18-month extension to remain in the state Department of Community and Economic Development's Act 47 protection program in a distressed municipality status.

Mayor Rich Ulrich said he and council members Doreen Annis, Barbara Moyer and Billy Milbrand at Monday night's public meeting approved the first reading of an ordinance that will extend its status for another 18 months. The final reading and adoption will be voted on at public meeting in January.

"One, it will help us out financially," said Ulrich. "Two, it gives us a little more time to decide what course of action we'd like to take, especially for those of us who are new, and what is the best avenue to pursue."

As part of the state Department of Community and Economic Development (DCED)'s Act 47 protection program since July 2014, Shamokin is considered a financially distressed municipality, which allows the city to avoid bankruptcy, secure state interest-free loan assistance and budgetary oversight and authorizes collecting higher taxes. Shamokin had a three-year plan to leave Act 47 status in February 2023, but an 18-month extension puts the date in August 2024.

The ordinance also includes consideration to pursue litigation against Northumberland County to force a reassessment. This issue is part of the state's recommendations from the city's exit plan out of Act 47 status, said Ulrich.

Properties in Northumberland County have not had a reassessment since 1972, meaning all property taxes are based on figures from 50 years ago.

"One of the questions I asked Ryan (the city's Act 47 coordinator Ryan Hottenstein) is if the county did these reassessments like they should have over the years, would the city be as in bad shape and he said no," Ulrich said.

The mayor said some property owners may pay less, some more.

"It puts everyone at the current state for what taxes should be," said Ulrich.

Councilwoman Tonya Leschinskie voted against the motion due to the language of the amended exit plan.

"While I fully support the 18-month extension in the program, I do not agree with section 3 where it states 'The City Council Consider litigation against Northumberland County to force a county-wide property tax reassessment,'" said Leschinskie. "My fear is that the word 'consider' would eventually be used against the city upon exit of the program in August 2024, in retaliation for not complying with options given by the ACT 47 team. I would never consider suing every property owner in Northumberland County to attempt to resolve Shamokin's financial issues."

That process would cost the county millions of dollars and years to complete, she said.

"Quite frankly, it's a major gamble because no one, including ACT 47, could be sure of the outcome of the assessment," said Leschinskie. "Our neighboring communities would be greatly affected, which would have no financial improvements to the City of Shamokin. I have spoken to many residents of my community, some lifelong residents on fixed incomes who still reside in their homes, and this is not beneficial to the majority of residents in the city. I do not want to see people losing their homes because of Shamokin's financial instabilities of the past."

Leschinskie said there are many options on the table to resolve these future issues, she said.

"My co-council needs to sit and have an open mind and an open discussion about all possibilities, not just for a few minutes on meeting nights," she said. "The public needs to have input on this, across the county, not just Shamokin. We still have not been contacted by any of the county commissioners to get their input on the matter. In the end, I would certainly vote for a resolution that would remove that language contained in Section 3. I stand firm on my decision with a very clear conscience."

Under Act 47, cities like Shamokin can adopt higher taxing rates. Earlier this month, Northumberland County Judge Hugh Jones approved the city's petition to keep millage rates 5 mills above the maximum millage rate and 1 percent above the maximum earned income tax, which would allow the city to generate nearly $800,000 in revenue to balance the budget. It is the 15th consecutive year that the city was approved for the higher millage rate of 35 mills and the ninth year for the EIT at 2 percent.

The extension ordinance will be available for public viewing for 30 days. It will be on the agenda for a final reading and adoption at 6 p.m. Jan. 9 public meeting.