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/

 

 

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 Authority Plays Tooth Fairy To City

Image via Wikipedia

The Harrisburg Authority has unanimously approved a payment to financially distressed Harrisburg City in the amount of $3.8 million dollars! 

The Authority, you may remember from earlier posts, created the $288 million dollar debt on the incinerator which has all but sent the capital city of Pennsylvania to the poor-house.  By some stroke of luck or Divine Intervention, the Authority has funds a-plenty in its water division.  The Authority is assuring the public that their “gift” to Harrisburg will not raise water rates for 2011, exhaust reserves or threaten capital projects

Seems only fitting that the Authority comes up with the money.  This infusion of capital reduces the city’s year-end deficit to a more manageable $1 million dollars. 

The $3.8 million dollars will be used toward city payroll and a big stack of unpaid bills!

Kudos to The Authority for doing the right thing by the citizens of Harrisburg!

New Taxpayer Watchdog Group Being Formed In Harrisburg

Taking a cue from Pottstown, a group of concerned taxpayers in Harrisburg is forming a new organization to represent their interests and concerns regarding the October 1st application for Act 47, which would officially designate Harrisburg a financially distressed city.  The $288 million dollar incinerator debacle is threatening to financially ruin our state capital.

Debt Watch Harrisburg held their first meeting on October 19th at the Midtown Scholar Bookstore, 1302 N. Third Street in Harrisburg.  Harrisburg attorney Neil Grover and several other activists are organizing the effort.

If you are a city resident, please click on the link below for more information on how you can protect your interests:

debtwatchhbg@gmail.com

Harrisburg Mayor Holding News Conference At Noon – Expected To Announce Harrisburg Will Enter Act 47

Breaking News!!

Isn’t this just a feather in Fast Eddie’s cap.  Our state capital is poised to enter Act 47 right before he leaves office.  Great job there Eddo.

More to come on this story!!

UPDATE!

With Fast Eddie by her side, Linda Thompson announced that she has applied for protection under Act 47 for the City of Harrisburg.  If Council approves, the rubber-stamp will come from Fast Eddie and Harrisburg will join a distinguished list of Pennsylvania cities that are financially distressed!

Harrisburg Authority Defaults On Incinerator Bond Payment!

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This is very bad news!  The City of Harrisburg and the Harrisburg Authority have defaulted on a $35 million dollar bond payment for the incinerator.  Dauphin County is now on the hook for $35 million dollars by December 1st.

The payment was to come from two accounts.  One account had .49 cents in it and the second account contained .84 cents.  I have more change in my pocket!

I reported earlier that the city controller had come up with a plan for debt repayment on the incinerator, however, I would think this is NOT part of the plan to repay the debt.  Unless defaulting on the loan is the only way to transfer the responsibility to the county, which was part of the plan, I believe.

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!