Like dominoes falling, Scranton has finally adopted a revised recovery plan, and because of that the city now will receive a $2.2 million state aid package and a $6.25 million short-term bank loan that will allow the city to pay bills and payrolls while continuing to seek long-term borrowing to fund its 2012 budget.
The flurry of separate, yet related, developments has bought the city some time to resolve its short-term financial crisis, however the city still needs to secure other borrowing to end the year in black, Mayor Chris Doherty and council President Janet Evans said.
The stage was set with the city’s proposed revised recovery plan having received approval in recent days from its Act 47 recovery coordinator, Pennsylvania Economy League. That approval will allow the city to receive the $2.2 million state aid package from PEL’s overseer, the state Department of Community and Economic Development. With PEL and DCED on board with the city’s recovery plan and the state aid package on the way, the city was able to secure on Wednesday night a $6.25 million tax- anticipation note from Amalgamated Bank of New York and Washington, D.C., the mayor and Mrs. Evans announced late Thursday afternoon in front of City Hall, shortly before the council meeting.
“This buys us time,” Mr. Doherty said of the bank loan and state aid package. ”With the recovery plan being passed, it sends a positive message for our future borrowing.”