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Harrisburg, Pa. - Dauphin County is bailing out the capital city once again. The Harrisburg Authority has yet to make a payment on its massive source of debt this year: the trouble-plagued trash incinerator. It's old, can't even operate at full capacity, and is a huge financial burden.
Harrisburg, a city of 49,000 people, owes a stunning $280 million on the incinerator. The latest payment was due this week. Harrisburg can't afford it, so the county fronted $1.8 million. As you can imagine, county leaders are not happy about it.
"The city is going to be hard pressed to try and get the county's help in future financing deals as a result of this. There's no question about it," said Dauphin County Chief Clerk Chad Saylor.
Dauphin County has already covered about $2.5 million in debt payments this year. How much more money will it have to front?
When will the city make full payments on the incinerator? Payments, we're told, that will increase to $70 million next year.
"Our ability to cover debt service going forward rests on our ability to raise rates," said Harrisburg Authority Chairman James Ellison.
Harrisburg did. Most residents pay more than $30 a month in garbage fees. Last year, the authority proposed a county-wide rate hike, but county leaders rejected it and won a lawsuit on the matter. They'll likely be in court again. The county has sued Harrisburg to get its money back.
"From our point of view, the city of Harrisburg is like the titanic heading for an iceberg," said Saylor.
To prevent it from sinking, Saylor said city leaders need to act now.
"Take a look at the assets that they hold as the city and look to sell or lease and that will help them raise the cash they need to make these payments because it's simply only real option other than a massive tax increase on city residents."
City council did bring in an independent consulting firm to review its finances. We're awaiting a report that includes recommendations.
Council members previously voted down a suggestions to lease Harrisburg's parking garages.
The county has encouraged Harrisburg should sell City Island and even offered to help with the process.
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