Harrisburg City Council Passes Resolution Calling For Safety Of Oil Trains

Lancaster County officials aren’t the only ones expressing concern over oil trains passing through communities along the Susquehanna River.

Harrisburg City Council Tuesday night passed a resolution that urges Congress and the U.S. Department of Transportation to improve the designs of rail cars that carry explosive crude oil across the country and through populated areas.

The resolution also urged rail companies to replace their fleet of oil tank cars with improved models. And the measure asked the Pennsylvania Emergency Management Agency to help local emergency responders better prepare for the possibility of an oil-train accident.

Read more:

http://lancasteronline.com/news/local/harrisburg-city-council-passes-resolution-calling-for-safety-of-oil/article_9b630868-e376-11e4-b6a8-3f5ea18bf998.html

Moving Harrisburg Forward Might Be Impossible Without Settling Present

Map of Pennsylvania highlighting Dauphin County (Photo credit: Wikipedia)

The forum was supposed to focus on the future of Harrisburg. And to a large extent, it did. But the reality of city’s present casts a long shadow over any discussion in the capital these days.

At some point in the next three months, it is likely the Harrisburg recovery plan, whether you support it or not, is going to go into effect, essentially eliminating the city’s massive debts and putting its government back on the path to some form of solvency.

How much it is able to carry that past the next four years remains unknown. But the future of the city, whether it stagnates or begins a new renaissance, will largely be in its own hands, unencumbered from debt obligations.

At its core, argues developer Ralph Vartan, is a simple equation. Of the 58,000 people who work in the city, only about 10,000 live in the city. That is further unbalanced by the fact that over the last several decades the regional population has almost doubled, while Harrisburg’s has stagnated.

Read more: http://www.pennlive.com/midstate/index.ssf/2013/09/moving_harrisburg_forward_may.html#incart_m-rpt-2

Former Harrisburg Official Slams $86M Premium For City From Incinerator Sale

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HARRISBURG, PA – The capital city will pay an $86 million premium for garbage disposal under the proposed terms of sale for its incinerator, a former local official warns.

Those numbers are based, in part, on the city’s disposal rate starting next year at $190 per ton, former Harrisburg Public Works Director Ernie Hoch said.

Hoch sent a letter and supporting spreadsheet to City Council on Sunday afternoon lobbying them to vote against the transaction, then forwarded copies to other contacts including PennLive and City Controller and mayoral candidate Dan Miller, who sent his own cautionary correspondence last week.

Hoch noted the rates and tonnage minimums for the city and Dauphin County are based not on service costs, but the Lancaster Solid Waste Management Authority’s anticipated debt obligations related to its acquisition of the facility.

Read more:  http://www.pennlive.com/midstate/index.ssf/2013/09/former_harrisburg_official_sla.html#incart_m-rpt-2

Harrisburg Officials Say They’ll Compromise On KOZ Incentive

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HARRISBURG – City officials will decide next week whether to allow tax breaks to entice badly needed development on 10 properties – most of which do not generate any revenue currently.

Representatives from the Capital Region Economic Development Corporation, Hamilton Health Center, and the local public school district lobbied City Council’s Community Development Committee Wednesday night for a Keystone Opportunity Zone.

Target sites include four closed schools and the half-finished Capitol View Commerce Center abandoned by developer David Dodd, who’s now awaiting sentencing for defrauding the $28 million project of federal funds.

Read more: http://www.pennlive.com/midstate/index.ssf/2013/08/harrisburg_officials_say_theyl.html#incart_river_default

Harrisburg City Council Slams Receiver For Health Officer Exit

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HARRISBURG – The capital city’s restaurants might not be inspected during the next year because officials won’t spend $10,000.

That is, at least, the contention of some Harrisburg City Council members who blamed receiver William Lynch for losing a highly competent health officer to a better-paying post in a neighboring municipality.

Lynch was appointed to guide Harrisburg through the Act 47 recovery process brought on by the municipality’s $370 million debt and operating deficit.

For months, Lynch, his team, elected officials and city administration have presented a united front as they negotiate lower-cost deals with bondholders and city unions, as well as the sale of the incinerator and lease of public parking garages.

Read more:  http://www.pennlive.com/midstate/index.ssf/2013/06/harrisburg_city_council_slams.html#incart_m-rpt-1

SEC Case Against Harrisburg Falls Short For Exempting Finance Pros, Some Say

Seal of the U.S. Securities and Exchange Commission. (Photo credit: Wikipedia)

HARRISBURG, PA – No one answered the phone or the door at former Mayor Steve Reed’s home Tuesday nearly 24 hours after the U.S. Securities and Exchange Commission announced a settlement with Pennsylvania’s capital city over fraud charges rooted in activity during his administration.

Some public finance and securities experts saw the settlement – dubbed “toothless” by one – as a warning to municipalities that consequences await them if investors are misled by false or incomplete financial statements from local governments.

Others, however, criticized SEC for failing to hold the city’s hired advisers to account.

“Reed ran the city, (current Mayor Linda) Thompson (is running) the city,” said Mark Schwartz, a former bond lawyer who previously represented Harrisburg City Council on its ultimately rejected bankruptcy petition. “There is a ‘buck stops there’ liability for (city leaders), but the people who do the work are bond lawyers.  These are bonds that never should have been issued.  Reed cannot issue bonds on his own.  Professionals were abysmal in terms of fulfilling their responsibilities to investors and they have gotten off scot-free.  They’ve made millions.”

Read more:  http://www.pennlive.com/midstate/index.ssf/2013/05/fsec_case_against_harrisburg_l.html#incart_m-rpt-1

Harrisburg Public Works Director Ernie Hoch Quits, Pursues Harassment Complaint Against Mayor Linda Thompson

Recreation of the flag of the city of Harrisburg, Pennsylvania, from common knowledge. (Photo credit: Wikipedia)

Harrisburg‘s Public Works Director Ernie Hoch filed a harassment claim against Mayor Linda Thompson with the city on March 29. Hoch filed his complaint with Merry-Grace S. Majors, Harrisburg’s Affirmative Action Officer.

He said in the letter: “I am lodging a formal complaint against Mayor Linda Thompson for harassment, threatening my job and causing undue harm to city employees due to her political fight with the controller.”

Hoch resigned this morning to the dismay of various city officials, including City Council President Wanda Williams, who said his resignation will be a blow to the city.

Read more: http://www.pennlive.com/midstate/index.ssf/2012/04/harrisburg_public_works_direct_1.html

Harrisburg City Council Adopts 2012 Budget With 16 Percent Tax Hike

Harrisburg City Council tonight adopted a $54.3 million 2012 budget that includes a 16 percent real estate tax hike for homeowners.

The increase will tack on $50 to $100 in real estate taxes for most property owners.  A person whose property is assessed at $50,000 would pay $40 more annually in property taxes.  Property owners with houses valued at $100,000 would pay an additional $80 in taxes per year.

Council’s budget cuts spending by $1.2 million compared to the $55.5 million plan Mayor Linda Thompson introduced last month. Thompson’s proposal also included a 16 percent tax hike.

Read more: http://www.pennlive.com/midstate/index.ssf/2011/12/harrisburg_city_council_adopts.html

Harrisburg Receiver Granted Extension To Develop Financial Plan

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The newly appointed state receiver for Harrisburg, David Unkovic has been given an extension by Commonwealth Court to develop a plan to bring Harrisburg back from the brink of financial ruin.  The Harrisburg Authority’s failed retrofit of the city’s incinerator plunged the state capital $317 million dollars in debt. 

Harrisburg entered Act 47 as a first step to recovery.  The Harrisburg City Council and Harrisburg Mayor Linda Thompson have been at odds with the Act 47 team and each other.  Failure to follow the Act 47 team’s suggestions or come up with their own plan, the Governor of Pennsylvania appointed a receiver to take control of the city’s finances and come up with a plan to untangle Harrisburg from the incinerator debt.

The deadline has been extended from January 2nd until February 6th.  We applaud the wisdom of this decision.  Allowing sufficient time for the receiver to formulate the best possible plan is a “no-brainer”.  Harrisburg didn’t get into this situation over night and rushing to get out could make things worse.

Harrisburg Under Control Of State Appointed Receiver

David Unkovic, most recently chief counsel of the state’s Department of Community and Economic Development, was named by Gov. Tom Corbett to lead Harrisburg quickly out of financial distress. He will be assisted by the Washington, D.C.-based law firm of McKenna Long & Aldridge.

At a press conference, Unkovic deflected concerns about his past, including 23 years at the firm of Saul Ewing, which represents Assured Guaranty, the largest insurer of Harrisburg incinerator bonds.  He’s also worked for other firms that have ties to the incinerator debacle, including Public Finance Management and RBC Capital Markets…

Read the rest of the story… http://www.theburgnews.com/Index.html

Corbett Signs Legislation To Allow Harrisburg Financial Takeover

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Pennsylvania Governor Tom Corbett has signed legislation that will allow a state takeover of Harrisburg’s financial affairs. The capital of Pennsylvania is drowning in debt from a failed retrofit of the city’s incinerator.  Harrisburg is over $300 million in debt. 

Harrisburg was accepted into the Act 47 Program for financially distressed municipalities but City Council failed to authorize the recommendations made by the Act 47 team.  Neither was the city able to come up their own plan to emerge from certain bankruptcy.  

Disgusted with the inability of city leadership to move forward, Pennsylvania State Senator Jeff Piccola introduced legistion to allow the Commonwealth of Pennsylvania to take control of Harrisburg’s finances.  This legislation was signed by the governor this morning.

Harrisburg Moving Closer To State Financial Takeover

The Pennsylvania House of Representatives voted 185 – 9 in favor of a bill that will allow a state-appointed receiver to take control of Harrisburg’s finances.

It is also very liked this bill will overwhelmingly pass in the PA State Senate!

Harrisburg is a financially distressed community under ACT 47.  City Council has refused to comply with recommendations made by the Act 47 team and the mayor’s proposal was also vetoed.

PA State Senator Jeff Piccola is leading the charge for a state takeover.  Harrisburg is hundreds of millions of dollars in debt from a failed incinerator retrofit.

Governor Corbett is expected to sign the bill when it reaches his desk.

Harrisburg City Council Rejects Act 47 Plan And Mayor’s Plan – State Takeover Likely

Harrisburg City Council rejected the Act 47 plan, and now they have rejected Mayor Linda Thompson’s plan one last time.  Critics say the mayor’s plan is basically the same plan as presented by the Act 47 team.

Rejecting the mayoral plan means the original plan will end up being enforced by the Commonwealth.  Council is delaying the inevitable.  However, denying the plan gives naysayers the ability to distance themselves from the plan should it go badly.  This amounts to a CYA move for the no votes on council and the ability to come back and say “I told you so!” later.

Governor Corbett says he will sign legislation to appoint an oversight board to enforce the state recommended financial recovery plan.  Harrisburg is $310 million dollars in debt from a failed retrofit of the city’s incinerator.

Harrisburg Mayor Linda Thompson’s Recovery Plan Gets Cool Reception From City Council

Harrisburg, Pa — It may be a difficult road ahead for Harrisburg’s latest financial recovery plan, as several council members tonight voiced significant concerns over Mayor Linda Thompson’s Act 47 alternative.

 

Councilman Brad Koplinski complained that the mayor did not explore the potential of implementing a 1 percent, county-wide sales tax, nor did her plan include any concessions from bond insurer AGM…

 

To read the rest of the article and other coverage of Harrisburg’s Act 47 status, click here:

http://www.theburgnews.com/

 

 

Law Firm Advises Harrisburg City Council Not To Pursue Bankruptcy

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Cravath, Swaine & Moore has advised Harrisburg City Council, via a two hundred page document, not to pursue bankruptcy at this time.  Rather the city should stay the course with Act 47 and try to negotiate with stakeholders.

Harrisburg entered Act 47 after the city amassed a $288 million debt from retrofitting its incinerator.  This has nearly bankrupted Pennsylvania’s capital city and put a strain on Dauphin County as well.  The county became involved when Harrisburg City and Authority were unable to make a loan payment last year and were on the verge of default.

Harrisburg City Council Opts For Transparency With Act 47 Meeting

Pennsylvania’s capital city officially entered Act 47 in December, thereby officially making Harrisburg a “financially distressed” municipality and eligible for state help to emerge from their enormous debt, caused by the retrofit of the Harrisburg incinerator.

Four Harrisburg City Council members publically declined a “private” meeting with the new “Act 47 financial guru’s” today.  Council members objected to private meetings with the Act 47 taxpayer-paid team.  The meeting was characterized as a “get to know each other” routine introduction by officials from the Department of Community and Economic Development.  To get around the open meeting requirements, “Sunshine Law”, the meetings were to take place with three or fewer members of Council at a time. 

These four courageous councilors feel the process is too important to not involve residents of Harrisburg.  The public should have the opportunity to hear the information as it is delivered to Council.

We give two Roy’s Rants thumbs up to Harrisburg City Council’s observance of the Sunshine Law and transparency in city government.  Harrisburg has a long road ahead to get out from under the incinerator debt.  The public deserves the courtesy of open meetings when this important issue is discussed.

Harrisburg Mayor And City Council At War Over Budget

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Controversial Harrisburg Mayor, Linda Thompson, is refusing to sign Harrisburg City Council’s proposed 2011 budget.  Mayor Thompson thinks the proposed $56 million dollar budget is deeply flawed because it underfunds the police and fire budgets.

According to Thompson, she found $4 million dollars worth of errors in the budget and she asserts this budget does not even provide for sufficient fuel to power the city’s emergency vehicles.  Thompson was quoted as comparing the proposed budget to throwing spaghetti against a wall to see if it sticks.

Mayor Thompson can veto the budget, use as line-item veto or let it pass but refuse to sign.  She has until Tuesday to make a decision.

Harrisburg was accepted into the Act 47 program in December, thereby officially making our state capital a financially distressed municipality.

Harrisburg City And Authority Move Forward In Debt Crisis

Some positive and forward momentum was made last night when the Harrisburg Authority added a needed sixth member to make a quorum.  The Authority has not had a quorum since May!  Evidently Mayor Linda Thompson finally got her nominee approved after several months of lobbying.

Harrisburg City Council also approved making a one-time $3.3 million dollar payment on the incinerator debt via a budget transfer.  Where did this money suddenly come from you ask?  Ed Rendell, governor deluxe, basically gave Harrisburg money they would be receiving throughout the year in a lump sum.  As you recall, the two bank accounts the debt payment was to come from had less than $2.00 between them.

There is still much division between Mayor Thompson and council on how to proceed with a long-term incinerator debt strategy.  Harrisburg owes $288 million dollars!

Also Scott Balice Strategies is tapped to be hired with state funds to help Harrisburg out of their current financial black hole.  Everyone on council is not on board with this decision and the City Controller said he will not sign off on paying Scott Balice Strategies until council votes in favor of the hire.

One member of council tried to make a motion to hire a bankruptcy lawyer to investigate filing for Chapter 9.  However, the councilor was told his motion was inappropriate as it was at the end of the meeting.  The meeting was quickly adjourned.

Sounds like Harrisburg isn’t out of the woods yet!

Harrisburg Controller Riding To City’s Rescue?

Harrisburg Controller, Dan Miller has come up with a plan that will keep our capital city from going bankrupt trying to pay the $68 million dollar debt on the Authority’s incinerator.  https://roysrants.wordpress.com/2010/06/10/harrisburg-is-running-out-of-time-to-solve-run-away-debt-crunch/

Details are unavailable at this time, however, the plan will need cooperation from all parties.  Those parties being the City of Harrisburg, the Harrisburg Authority, Dauphin County and the note holders.  The plan will not require selling Ed’s mansion or raising taxes.

Let us hope that Dan as a rabbit in his hat!  Allowing Harrisburg to go bankrupt would be a huge black eye for Pennsylvania. 

Miller will hold a press conference on Wednesday at 10 am to announce the details of the plan.

We hope for the best possible outcome in this matter!