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Harrisburg debt deal filing could occur Monday

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The much-anticipated debt resolution in Harrisburg is expected to be filed with Commonwealth Court early next week, according to the Office of the Receiver.

Spokesman Cory Angell said revisions of a 100-page main draft are in the works and filing of the plan could occur Monday. Additional details of that timeline are expected later in the week, he said.

“I imagine toward the end of this week they will be hammering out actual numbers,” he said.

Frequent fluctuation in interest rates on the bond market have affected the timing of the filing, Angell said. The length of the various deals involving the incinerator and parking system — guaranteeing certain revenue streams for the city — also have played a role, he said.

Receiver William Lynch last month announced that a deal was in place between the city, the county and creditors. The deal is an important step toward relieving the city of about $345 million in debt associated with its incinerator.

The deal, which would sell the incinerator to the Lancaster County Solid Waste Management Authority, needs court approval since it is a change to the city’s state-approved recovery plan.

The parking side of the debt deal calls for a public/private partnership that expects to create significant revenue streams for the city.

The city is expected to receive a large upfront payment, as well as increases in parking tax, meter and fine revenue when received. Harrisburg will receive some residual cash flow after the revenue pays for operations, debt service and capital replacement and reserves.

The City Council is scheduled to meet on Aug. 27, where legislation tied to the pending plan is expected to be discussed.

Once a plan is filed with the court, a hearing on the plan could occur within two or three weeks, Angell said. The court has session days Sept. 9-13 in Harrisburg.

 

Jason Scott

Jason Scott

Jason Scott covers state government, real estate and construction, media and marketing, and Dauphin County. Have a tip or question for him? Email him at jasons@cpbj.com. Follow him on Twitter, @JScottJournal. Circle Jason Scott on .

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