That means the parking authority is officially in default effective Friday.
Some warn that the vote could have dire circumstances for the financially distressed city.
Council members acknowledged after Thursday's vote that they don't know exactly what will happen next. Those who voted against the appropriation dispute claims the city would be harmed if the parking authority defaults.
Mayor Chris Doherty says the decision is disastrous because now Scranton won't be able to secure $16 million in an unfunded-debt loan and refinancing that are key planks of the council's 2012 budget and that the city desperately needs to stay afloat this year.