Mayor says Harrisburg, Pa., to receive $7.4 million to balance budget

By Jim Witters

Wilmington, Del., Sept. 8 - Harrisburg, Pa., mayor Linda Thompson announced late Wednesday that the city will receive $7.4 million from the Parking Authority that will be used to offset a projected $6.8 million deficit through the end of the year.

The money is part of a $10 million loan the Parking Authority is getting to pay for extended use of city land from 2016 through 2026 and to pay for capital improvements to the parking system, according to a press release issued Wednesday evening.

Under the terms of the agreement, still in process, the city will receive the payment by Sept. 14, the release stated.

"This payment will balance the city's $6.8 million inherited structural deficit for 2011. All city bills will be paid to our business partners and vendors both small and large who have stood by this city in its toughest hour," Thompson said.

The lenders involved in the agreement have asked to remain unidentified until the transaction is finalized.

The City Council approved the lease extension plan concept last month.

While the transaction allows the city to meet its immediate obligations, it remains saddled with more than $300 million of debt. Most of the debt resulted from the construction of the city's incinerator.

The mayor proposed a plan to sell the incinerator, but the City Council rejected it on a 4-3 vote on Aug. 31.

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