Default is looming for the Scranton Parking Authority as city council refuses to release $1.4 million the authority needs by June 1 to pay debt, officials said.
SPA notified the council last fall it would have a budget deficit in 2012 and would need council to fill the gap. Council set the funds aside in a contingency account that only council can release, thus forcing SPA and Mayor Chris Doherty’s administration to come back to council for the funds.
As the city backs the SPA debt in question – and with the June 1 deadline fast approaching – the administration on May 10 requested emergency legislation from the council for the $1.4 million.
But the council refused and demanded that SPA executive director Robert Scopelliti and city Business Administrator Ryan McGowan first appear before council on May 17 to explain why the funds are needed. Councilman Pat Rogan and council Solicitor Boyd Hughes went so far as to say SPA should be allowed to go into default.