(Harrisburg) -- Harrisburg Mayor Linda Thompson has unveiled her own plan to deal with the city's debt crisis. Her office released the following statement this afternoon:
City Mayor Linda D. Thompson introduced her Act 47 plan to City Council and the public today with a number of newly negotiated initiatives which will, once approved by City Council, eliminate all incinerator debt and inherited structural deficits and return the City to fiscal solvency by mid-2013.
The Mayor said she has negotiated a tentative resolution to the "stranded debt" issue, with increased support from the state, county and bond insurer AGM, contingent upon approval by Council, which means the sale and lease of City assets under her Plan will completely eliminate the City's crushing $310 million incinerator debt burden.
"AGM has made any further contributions to stranded debt contingent upon passage of my plan by Council." Mayor Thompson noted.
Additionally Mayor Thompson said there would be no so-called commuter tax raised. "We will eliminate the debt and balance the structural deficit without the use of an EIT commuter tax increase," the Mayor said today.
"This tax is simply too disproportionally burdensome for residents who live and work in the City." She added.
A modest 8% property tax increase of about $50 on average, offset by reduction in tipping rates of about $48, will remain in the Plan.
The Mayor noted the City would turn to remedies like a commuter tax only as a last resort, in the event any of the stakeholders failed to produce under the newly negotiated debt elimination plan.
The Mayor said that her plan calls for an influx of $6-8 million in operating cash to offset the City's projected 2011 cash flow shortage, and a balanced operational budget which would generate reserves by late 2013.
"We will work our way, step by step, out of the inherited debt and deficit burdens and return this great city to solvency in a few short years." Mayor Thompson added. "If we – public and private leadership, work to overcome obstacles and realize that my plan is a work in process, open to adjustment as reasonably necessary."
The Mayor was very open to ideas from City Council members at several working meetings last week. "Where ever possible I have attempted to follow Council’s guideline expressed in Council Resolution 25." Mayor Thompson said. "Everyone’s viewpoint is included in the plan, but not everything we all wanted is possible."
The Mayor’s plan also outlined the 42 cost reduction initiatives which will require union agreement or negotiation to reduce the city’s inherited structural deficit.
The Administration delivered the Mayor’s Act 47 Recovery Plan to all parties today and made it available on line, a copy is also available for view in the City Clerk’s office.
