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’s Interim Police Chief Talks Reallocation Of Officers, New Hires During Public Safety Hearing

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Harrisburg‘s interim police chief reiterated his passion for community policing during a panel discussion on public safety Thursday held by Democratic mayoral candidate Eric Papenfuse.

During the discussion, Chief Thomas Carter provided further details regarding the plan he presented earlier this week alongside Mayor Linda Thompson to dissolve several specialty police units in order to beef up the city’s overworked regular patrol.  Under the plan, 17 officers from groups such as the traffic and street crimes units will be pulled from the chief’s office to resume regular patrols, Carter said.

“We put them back into the fold,” the interim chief said.  “The basis of every strong police department is to have patrol officers out there to answer your calls, and we did not have that.”

Carter, who was appointed by Thompson after former Chief Pierre Ritter retired late last month, told the small audience at Thursday’s hearing that, while he believes such steps should have been taken as long as a year ago, he does not fault his predecessor for not making the call.

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

Cleaning Up Steve Reed’s Mess: Harrisburg’s Debt Plan Expected To Be Filed Today

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Cleaning up former Mayor Steve Reed’s mess is going to take more than just a solution to his incinerator debt.

Harrisburg‘s state-appointed Receiver has said he hopes to file sometime today his plan to eliminate the city’s bad debt through the sale of the incinerator and a long-term lease of parking assets.

While the more than $360 million in unpayable debt at the incinerator is the root of why the city is in receivership, whatever plan is put forward has to account for much more than that.

Why?

Read more: http://www.pennlive.com/midstate/index.ssf/2013/08/harrisburg_debt_plan_cleaning.html#incart_m-rpt-2

Harrisburg Police Chief Pierre Ritter To Retire; Mayor To Name Replacement Thursday

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Harrisburg officials will hold a news conference Thursday to announce the retirement of city police Chief Pierre Ritter.

Mayor Linda Thompson also is expected to announce Ritter’s successor, said Robert Philbin, the city’s interim chief operating officer.

Ritter was named chief in January 2010.  He has been on the city’s police force for more than 30 years.

Read more: http://www.pennlive.com/midstate/index.ssf/2013/08/harrisburg_police_chief_pierre_2.html#incart_river_default

Harrisburg Debt Announcement Leaves Public Wanting More

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HARRISBURG – State officials generated a full house Wednesday morning with emails hinting at big news related to the city’s financial recovery.

And many the people boosting the typically sparse attendance – Harrisburg residents, reporters, elected and appointed officials – seemed underwhelmed by what they heard at the Municipal Financial Recovery Advisory Committee’s meeting in City Hall in Harrisburg.

Few numbers, no documents, scant detail – all of that is to come, likely by mid-August when debt resolutions deals are filed in court.

Instead, the point was to broadcast an attitude adjustment among stakeholders involved in negotiations to resolve more than $600 million in debt, state-appointed receiver William Lynch said.

Read more:  http://www.pennlive.com/midstate/index.ssf/2013/07/harrisburg_debt_announcement_l.html#incart_m-rpt-1

Agreement Reached To Sell Harrisburg Incinerator To Lancaster Authority

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An agreement has been reached that will allow the Lancaster County Solid Waste Management Authority to purchase the long-troubled Harrisburg incinerator, officials said Wednesday.

Details about the plan — including the sale price — were not disclosed.

At a press conference, Harrisburg Mayor Linda Thompson touted the agreement, months in the making, as a key to bailing out the financially beleaguered city.  “This is the turning point we’ve all been waiting for,” she said.

Read more: http://lancasteronline.com/article/local/875044_Agreement-reached–to-sell-Harrisburg-incinerator-to-Lancaster-authority.html#ixzz2ZzKfEDjE

PENNVEST Approves $28M For Harrisburg Sinkhole, Water Treatment Projects

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HARRISBURG – Nearly $28 million in loans was approved Tuesday morning to fund sinkhole repairs and water treatment upgrades in the capital city.

The Pennsylvania Infrastructure Investment Authority board unanimously approved financing applications from the city and The Harrisburg Authority at its meeting Tuesday.

The Harrisburg Authority is getting $26.9 million; the city, $900,000.

The city’s loan is conditional on transferring ownership of infrastructure to The Harrisburg Authority.

Read more:  http://www.pennlive.com/midstate/index.ssf/2013/07/pennvest_approves_28m_for_harr.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

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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

Violent Crime Wave Continues With 3 More Shootings, Robberies In Harrisburg

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Within hours of Harrisburg police’s first foot patrol to curb the city’s most recent wave of violent crime, police responded to three more shootings and several robberies.

As of Wednesday afternoon, police had arrested two male teenagers, a 17-year-old and a 14-year-old, as well as a 23-year-old man in connection with the crimes, and additional charges are likely as the investigation continues, city police Chief Pierre Ritter said.

Speaking from the site of the latest foot patrol in the Allison Hill neighborhood Wednesday afternoon, Ritter addressed the department’s need to keep up with criminals, who he said are quick to target areas far away from planned police enforcement zones.

“What we’re seeing happen is, when we make foot patrols in one area, these guys go to another area to commit crime,” Ritter said. “Criminals are becoming more and more mobile.”

Read more:  http://www.pennlive.com/midstate/index.ssf/2013/05/post_562.html#incart_m-rpt-1

Harrisburg Neighborhood Safety Zone Program Nabs 16 Guns, Cites Over 150 Code Violations

HARRISBURG — Police confiscated a gun, wrote nine traffic tickets and issued 100 citations for property code violations during the third phase of the capital city’s Neighborhood Safe Zone initiative.

The eight-day crackdown on crime targeted North Sixth Street between Radnor and Woodbine streets, and along North Fourth Street from Radnor to Jefferson streets, Mayor Linda Thompson said.

Thompson spoke during a news conference Tuesday to provide an update on the NSZ program launched two months ago.

Modeled after initiatives in Baltimore and Washington, D.C., the program increases enforcement in specific areas for a brief duration: police crack down on crime, then code enforcement officers survey properties for violations — resulting in everything from littering citations to deeming structures unfit for human habitation — and illegal dumping.

Read more:  http://www.pennlive.com/midstate/index.ssf/2013/04/harrisburg_neighborhood_safety.html#incart_m-rpt-2

Harrisburg Mayoral Race: The Bottom Line On Bankruptcy

Harrisburg mayoral candidate Eric Papenfuse has suggested entering bankruptcy would hand control of the city over to an unelected federal judge, but that’s just not true.

Even in a Chapter 11 bankruptcy for businesses, the judge does not take over operation of the company, notes Widener law professor Juliet Moringiello. In a Chapter 9 filing for municipalities, the powers of the judge are even more limited.

Separating fact from fiction is not always easy as bankruptcy becomes a talking point in the Harrisburg mayoral election.

The Patriot-News has talked to a number of bankruptcy experts, including people involved with the Harrisburg Receiver’s negotiations who spoke on condition of anonymity because they are not authorized to speak on the record about the process.

Read more:  http://www.pennlive.com/midstate/index.ssf/2013/04/harrisburg_mayoral_race_the_bo.html

Harrisburg Shootings Lead To Street Barricade, Shaken Residents

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Hours after Harrisburg police barricaded an uptown street for safety, shots rang out throughout the city’s crime-ridden Allison Hill early Saturday, wounding at least two men and leaving residents shaken.

Residents, some awakened by volleys of bullets, found the sound of gunfire all too familiar.

Gunshot victims bled on the streets, one on South 14th and one on Brookwood.

Police cars, their lights flashing “like Christmas trees” as one resident described it, descended on the neighborhoods.

Read more: http://www.pennlive.com/midstate/index.ssf/2012/08/harrisburg_shootings_lead_to_s.html

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

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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 Leaders Believe Bankruptcy Is Inevitable For City

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Editor’s note:  How very sad that the capital city of this great Commonwealth has deteriorated to this extent!

The Patriot-News Editorial Board met Thursday with City Controller Dan Miller, Council President Wanda Williams and City Treasurer John Campbell.  Below is an excerpt of the conversation.

Q: Where do things stand in the city now?
Dan Miller: We’re going into bankruptcy.  The question is will we have the assets or won’t we have the assets [when we do].  Just because we adopt a plan, that’s not going to solve the problem.  I think [receiver] David Unkovic knows the same thing.

Wanda Williams: I had an opportunity to talk to Jefferson County, Ala., officials last weekend.  They tried to derive a plan there similar to Unkovic’s, but the people were up in arms and they said no, we are not going to allow you to sell our assets.  What you’re going to do is sell our assets and we’re going to be left with nothing, and we’ve been telling Unkovic that.  Where do you derive the revenue from after you sell all our assets?  Now Jefferson County has filed bankruptcy, and the judge is making that determination.  Their assets are safe for the time being. I see this as a ploy — Gov. Corbett has asked [Unkovic] to come in and do a plan, but in the interim, we’re going to be selling assets and filing for bankruptcy.

 Q: How significant was the city’s general obligation default on March 15?
Miller: I suspect we’re not paying any more debt for the rest of the year. I’m not the decision maker, but if you’re not going to pay it now, you’re not going to pay it anymore.  Unkovic is projecting a $9.5 million deficit.  I’m calculating $15 million.  We’re both acknowledging it’s a big deficit for this year.  Our general debt service is about $11 million a year.  Even if you sell the assets, it’s not going to impact the budget. We’re out of money.

Read more:http://www.pennlive.com/editorials/index.ssf/2012/03/harrisburg_leaders_believe_ban.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

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 To Layoff 10 Firefighters

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Mayor Linda Thompson announced today that she has formally notified 10 city firemen they will be laid off early in 2011. 

Mayor Thompson has also announced the closure of one fire station.  This will leave Harrisburg with 74 Fire Department employees and one less fire station. 

The union, Local 428 of the International Association of Fire Fighters has cost saving ideas that could save $1.5 million dollars and avoid layoffs or closing a station.

Council is still reviewing Thompson’s $6.9 million dollar fire budget.  They should complete their review on Monday.

Harrisburg Authority Plays Tooth Fairy To City

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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!

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!