Revised Financial Recovery Plan for City of Harrisburg Released by Act 47 Coordinator

HARRISBURG, Pa., July 8, 2011 /PRNewswire-USNewswire/ -- The Act 47 coordinator for the City of Harrisburg – appointed by the Rendell administration on Jan. 12 of this year – has submitted the revised financial recovery plan to the city, the Department of Community and Economic Development announced today.  

Adjustments were made to the plan based on feedback the coordinator received from local officials, stakeholders and comments from a June 28 public hearing. Section 244 of Act 47 allows for revisions by the coordinators to be completed and delivered within 10 days from the date of the public meeting on the original plan.

Harrisburg's revised financial recovery plan can be found online at www.newpa.com by searching keyword "Act 47."

In accordance with the act, city council has 25 days from the June 28 public hearing to act on the revised plan. Because the deadline in this case falls on a Saturday, the revised plan must be acted upon by Monday, July 25.

Key adjustments/developments in regard to Harrisburg's debt include:

• The Act 47 coordinator has received written confirmation from Assured Guaranty Municipal and Dauphin County describing their commitment to the debt solution described in the plan;
• Lancaster County Solid Waste Management Authority has agreed to an earlier decrease in tipping fees to the city;
• The Harrisburg Parking Authority and the Harrisburg Authority have expressed a willingness to work with the city on the disposition of assets to make the debt solution possible;
• Goals on the sale or lease of assets, and the coordinator's commitment to transparency in this process, are now more clearly articulated.

Key adjustments to address Harrisburg's structural deficit include:

• Removed the requirement to implement a single tax rate and, consequently, the existing two-tier tax rate will be retained;
• Removed the requirement to consolidate the mayor and city council offices and staff, while still urging closer coordination and support when appropriate;
• Articulated the coordinator's support for the forensic audit being conducted by The Harrisburg Authority;
• Removed the requirement to close a single fire station but required that this be evaluated in the context of changing apparatus deployment to include four firefighters per engine;
• Clarified that post-retirement health care benefits are eliminated for future employees of the city, but not for those employed as of the date of this financial recovery plan;
• Added a requirement for out-of-county landlords to have a local agent to facilitate interaction between the city and property owners to identify and address code violations;
• Added a requirement for the city to alter its trash pick-up schedule to allow for weekly bulk waste removal in the community.

For more information on Act 47, or to download a copy of the revised financial recovery plan, visit www.newpa.com or call 1-866-466-3972.

Media contact: Theresa Elliott, 717-783-1132

SOURCE Pennsylvania Department of Community & Economic Development