MediaUpdates | City of Harrisburg
Harrisburg, PA Mayor Linda D. Thompson
The City of Harrisburg is dealing with many issues including being in the National Spotlight as the City struggles to find an effective financial recovery plan.
Check back often to stay informed and updated with the lastest City of Harrisburg News. The Dauphin County Democratic Committee receives our news directly from the Mayor’s Office.
For more information about the City of Harrisburg visit www.cityofhbg.gov
September 14, 2011
The Thompson Administration has released several Press Releases in reponse to Cit Councilman Brad Koplinski’s tweets following City Council’s decision not to approve the Mayor’s Financial Recovery Act:
Media Clarification
Council Member Brad Koplinski tweeted last night following the Harrisburg City Council meeting that “This was not aques of paying GO debt or employees – Cash on Hand & adv in pensionpayments to be rec tomoro would have done that.”
The City of Harrisburg Department of Financial Management response is:
While the various branches of theCommonwealth have been working diligently for the last severalweeks to accommodate Mayor Thompson’s requests of the Governor and AuditorGeneral to accelerate the State’s appropriated 2011 Pension System State Aidreimbursement and Capital Fire Protection payments to the City, there has beenno guarantee from any branch of the Commonwealth that the Citywould receive either of these payments by early afternoon on09/14/2011, the deadline for the City to be able to fund for its 09/14/2011debt service obligations.
Contrary to Mr. Koplinski’s statement below, there is currently not sufficient cash-on-hand to meet both the City’s payroll and “Must-Pay” vendors and fund forthe City’s $3.345 million general obligation debt service payments on09/14/2011 without the receipt of the State’s accelerated payment(s).
To make such a definitive statement was grossly irresponsible and could have put the City’s citizens,employees and bond holders at great risk had the majority of City Council not voted as they did to approve the amendment to the Coordinated Parking Agreement allowing the financing for the land parcels rent prepayment financingto proceed.
This matter absolutely was a question of not paying GO debt or employees, as there was no guaranty that the Commonwealthwas going to timely advance the City’s pension reimbursement payment as Mr.Koplinski was representing to his fellow Council members and the public last evening.
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Media Update | Clarification
Last night City Council memberKoplinski tweeted the following:
Brad Koplinski (@Bradkoplinski)
9/13/118:58 PM
Didn’t vote for HPA loan tonite bec of outrageous interest rate & ques as to if we needed $7.4 mil, that we will pay $16 mil for in the end.
The City Administration’s response follows:
Indeed,the interest rate is outrageous and had Mr. Koplinski, Ms. Brown-Wilson, Ms.Smith and Ms. Williams thought through the ramifications of their voting down the Mayor’s Act 47 Recovery Plan two weeks ago, the Harrisburg Parking Authority would have been able acquire financing for their $10 million loan at a much lower bank interest rate without having to rush Council’s decision on this matter.
They have only themselves to blame. Once these members voted the Act 47 Plan down,the banks lost faith in their City Government’s ability to govern the financesof the City responsibly. Thereafter, bank lending underwriters were unwilling to assume the financing risk.
Two weeks ago, the HPA had three possible financing options, including the oneCouncil approved last evening. Unfortunately, HPA had only one financing option remaining after Council’s “no” vote on the Mayor’s Act 47 Plan.
To Mr.Koplinski’s question as to if we needed the $7.4 million, he appears incapableof understanding that the Administration and the City Controller has numerous times, via the Administration’s Mid-Year Fiscal Report, and public hearing thereon (which Mr. Koplinski, the rest of the City’s electedofficials, and the Public received in mid-August) and the CityController’s Monthly Fiscal and Cash Flow Reports, indicated that the City has a projected cash flow deficit in the General Fund to be nearly $7.1 million bythe end of 2011. This was indicated by the Act 47 Plan and widelyreported in the international financial media and local press.
As the Controller’s Office monthly reports have continuously confirmed, the General fund carried over a $2.2 million cash flow deficit into 2011. That deficit,added to the City’s projected 2011 budget deficit of $4.8 million, accounts forthe total projected cash flow deficit of nearly $7.1 million. There is absolutely no question as to the need for the $7.4 million from HPA or someother unknown source. For Mr. Koplinski to make such a statement speaks either to his complete lack of understanding of this critical financial fact, or worse yet, his intentional approach to mislead his colleagues and the Public, putting the entire community at great financial risk.
Again, had Mr. Koplinski and his other three “no vote” colleagues thoroughly thought through their decision on the Mayor’s Act 47 Recovery Plan,HPA would not have to pay $16 million on $7.4 million in borrowing, impacting the City’s future parking fund distributions to that extent. Mr. Koplinski, Ms.Williams, Ms. Brown Wilson and Ms. Smith, and no one else, are directly responsible for this much less attractive outcome for years to come.
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Harrisburg ParkingAuthority Presents Land Lease Cash Flow Strategy to City Council
(Harrisburg)– Representatives from the HarrisburgParking Authority presented to City Council on Monday evening a financing plan, arrangedwith City Mayor Linda D. Thompson, to provide approximately $7.5 million in acash payment to the City by late-September.
Essentially, the City will extend thelease on parking facilities built on City land for ten years beyond the current leasing contract with the Authority, which expires in 2016.
“This transaction will provide $7.5million to offset the City’s inherited cash flow deficit this year,” Mayor Thompson said today, “without impacting the leasing of the parking systemas is called for in my Act 47 Recovery Plan.”
The Mayor said the arrangement, which amounts to an advance payment of $750,000 per year for the ten-year extension, will balance cash flow this year and, coupled with 150-deficit reduction initiatives included in the plan, will eliminate the City’s structural deficit.
“If all parties proceed cooperatively,as called for in my recovery plan, we will see the City turn around financially in late 2013.” Mayor Thompson added.
The extension of the land lease to theParking Authority beyond 2016 requires approval by City Council.
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Council Votes Artifact Sale,Process Moves Forward
(Harrisburg)– City Council passed a resolution last evening to sell historic Artifacts owned by the City through the administration’s RFP process. The RFP is in the Law Bureau and in final stages of preparation and will be released inapproximately a week.
The process of issuing the RFP for appraisal,marketing and auctioning services will take about 60-days before an appropriatevendor is selected.
There are about 8,000 artifacts, categorizedin about 12 “collections,” reflecting a sweep of American history, from the American Colonial Era, through the Civil War and Spanish American War, to World Wars 1 and 2 and Vietnam.
To date the artifacts purchased by the City and not on display at the National Civil War Museum have generated approximately $2.1 million in revenue for the City. There are about 8,000 artifacts remaining in the City’s collection.
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NationalWeather Service Hurricane Irene Update
As of today, the National Weather Serviceat State College indicates that most likely any significant impact from Hurricane Irene will be confined to eastern Pennsylvania.
In the mid-state there is some potentialfor “heavy rainfall, strong winds and small stream flooding,”Saturday morning through Sunday evening.
For more information, visit, http://www.nhc.noaa.gov .
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Mayor Thompson Appears Before Council Last Evening, ‘Radio Smart Talk’ This Morning
(Harrisburg)– City Mayor Linda D. Thompson appeared before Harrisburg CityCouncil last evening and for an hour on WITF’s Radio Smart Talk this morning, advocating passage of the Mayor’s Act 47 Recovery Plan.
“Each of us, the Administration and City Council, has a series of initiatives in this plan requiring cooperativeactions,” Mayor Thompson told council members. “We have to riseabove politics and implement each of those actions as a team.”
This morning, the Mayor responded to caller questions for an hour concerning the plan. “The Commuter Tax is in theplan as a last resort to provide some leverage to key points in my plan,”the Mayor said.
“The core of my plan is to makesure that we eliminate all debt when we leverage city assets, and you can’tget there if the stakeholders aren’t working to reduce the so-called ‘stranded debt.’
If AGM, the County and State can’tagree on debt elimination, I’ll then ask the court, under Act 47, to institute a commuter tax as per the law.”
The Mayor said she is reasonably confident the court would permit a commuter tax, at least for a limited period of time, as a means toward maintaining solvency, if the tax is targeted at commuter-related services, like street maintenance and street lights.
The Mayor’s plan has been widely endorsed as a roadmap toward financial solvency by state and local elected officials, business leaders as well as city and regional citizens.
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City Supports Community Action Commission Wells Fargo Grant
(Harrisburg)– City Mayor Linda D. Thompson announced City support for the Community ActionCommission (CAC) grant request under the Wells Fargo Regional FoundationNeighborhood Implementation Grant Program
“The City of Harrisburghas long been a partner in the CAC’s revitalization and community stabilizationefforts in the South Allison Hill neighborhood,” Mayor Thompson said today.
“I look forward to continuing support for CAC’sefforts to revitalize South Allison Hill and provide much needed investment in Harrisburg’s neighborhoods.”
The Mayor will use an Economic Development consultant, as called for in the Mayor’sAct 47 Plan, to develop an integrated economic development plan which MayorThompson will use with all community partners to move Harrisburg forward with a focus on business growth sustainment and job creation.
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City is Co-applicant for $250,000 YWCA of Greater Harrisburg Gaming Grant
(Harrisburg)– City Mayor Linda D. Thompson said the City has joined the YWCA of GreaterHarrisburg in support of its Local Share Municipal Grant application for$250,000 for structural and cosmetic improvements to the Y’s Sylvan HeightsMansion building locatedin Allison Hill.
“This facility has been operating in Allison Hill formore than a decade and it has assisted thousands of women and children andcontinues to provide vital services to our most vulnerable community.” Mayor Thompson said today. “It is currently in need of a number ofrepairs and upgrades.”
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City is Co-applicant for Harrisburg River Rescue and Emergency Services Grant
(Harrisburg)– The City of Harrisburgfiled as co-applicant with Harrisburg River Rescue and Emergency Services forthe 2011-12 Local Share Municipal Grant for funding to cover the purchase of autility vehicle, theOffice of the Mayor announced today.
“River Rescue provides vital services to the City inthe areas of emergency boat operations, water rescue, ice rescue, underwatercriminal investigations, forensic recovery and diver training,” MayorThompson said today.
“This grant will provide for expanded communityservices and enhanced response times in emergency situations.”
Harrisburg River Rescue and the City have a long historyof mutual support.
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City of Harrisburg Co-applicant for Dauphin County Historical Society Gaming Grant for JohnHarris Mansion Repairs
(Harrisburg)– The City of Harrisburg filed as co-applicantwith the Dauphin County Historical Society for a 2011-12 Local Share MunicipalGrant for funding to help cover the costs of repair and restoration of the John Harris-SimonCameron Mansion.
“This is one of our City’s most important heritageassets,” Harrisburg Mayor Linda D. Thompson said today.
“Built in 1766 by City founder John Harris, Jr., themansion was later renovated by Simon Cameron, President Lincoln’s Secretary ofWar, and it is one of two designated National Historic Landmarks in theCity.” The Mayor added.
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City is Co-applicant for Tri-County HDC Gaming Grant to Develop 25 Homes in SouthAllison Hill
(Harrisburg)– The City of Harrisburg has filed asco-applicant with Tri-County HDC, LTD, for a $200,216 Dauphin Countygaming grant to support the development of 25 single-family affordable housingunits in South Allison Hill’s Mount Pleasant Homes neighborhood.
“This multi-year project is an integral part of ourcomprehensive revitalization strategy for this neighborhood,” City MayorLinda D. Thompson said today.
“The development is supported by numerousorganizations, federal, state, and county, and proceeds from the sales of thesehousing units are reinvested back into the project.”
Dauphin County gaming funds awarded to thisproject will leverage approximately $5.5 million in additional committed fundingfrom a variety of sources.
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