SCRANTON -- The mayor of Scranton met with reporters Friday to explain what a back pay settlement between the city and the union will mean for the city's finances.
This has been an unsolved problem in the city of Scranton for almost five years. In 2011, the city of Scranton was ordered to pay more than $20 million in back pay to police and firefighters. On Friday, the mayor told us that with interest that total is $31.5 million and the city is ready to start paying that back since the police and fire unions made some concessions.
"Putting this behind us truly allows us to move forward and get done what we need to do for our city," said Scranton Mayor Bill Courtright.
The mayor laid out the terms of a deal several years overdue in the city. It's a deal to pay $31.5 million to police and firefighters including some retirees.
A Supreme Court ruling promised the money after wages were wrongfully capped by previous city administrations. The debt has been unpaid and accruing interest since 2011.
Mayor Courtright says the city will have to borrow the money, but the interest owed the police and fire has been reduced, and unions agreed to put some of the interest into the city's pension fund instead of their pockets.
"Am I happy that we will have to add this debt service cost to our budget? Of course not. But it was our responsibility and I would rather announce to the financial community, our own community of stakeholders, and all Scrantonians that this is an administration that pays its debts, rather than tell them we gave up, defaulted, and hand the keys over to a federal judge," the mayor said.
Bob Sparaney is a retired Scranton police officer, now running a private detective business in the city. He will benefit from the back pay settlement. He and other former and current police officers agreed to concessions in order to get the back pay now.
"There were young officers at that meeting and they have families, like I said, and they have children, and they have to live in the city. so, they deserve it," Sparaney said.
To critics, like fellow taxpayers now footing the bill, Sparaney says since police and firefighters are required to live in the city, they are not only owed the money but are contributing, too.
"It's on him to pay us, but again, I have to say, these police officers who are working for the city deserve this money, this is not a windfall."
Scranton's city council will still have to approve the deal. Mayor Courtright was short on details on how exactly the city will come up with the $31.5 million but hinted that the potential sale of the Scranton Sewer Authority could help pay for it.
