Harrisburg City Council is taking from the rich and giving to the poor, so to speak. But City Controller Dan Miller opposes borrowing money from the city water and sewer fund to help pay city expenses.
The city receiver has suggested that council borrow about $4 million. This will help pay general fund expenses, such as payroll, health care benefits and workers comp insurance, for January and February.
Harrisburg City Council is asking Dauphin County Court to approve a loan from the water and sewer fund with a promise to pay it off within six months. Local governments often borrow money at the beginning of the year as they wait for residents to pay their taxes.
Because of Harrisburg's fiscal crisis, banking institutions aren't willing to lend the city money. So City Receiver William Lynch suggested opening a line of credit with the water and sewer fund at a favorable one-half percent.
But City Controller Dan Miller, who opposes the receiver's plan, is also against borrowing more money.
"As far as borrowing more money, it will only exacerbate the problem,” City Controller Dan Miller told us. “It doesn't solve anything. We've had several years now. And all we continue to do is borrow, make the hole bigger, dig it deeper, and we're not solving any problems. I think this is a big mistake. We need to get into bankruptcy as soon as possible."
Other critics say the money should go to repair the city's deteriorating infrastructure. Three sinkholes opened up last week in the 2100 block of North Fourth Street. Residents were asked to leave their homes when water and gas services were interrupted.
However, the city needs the money to pay its bills. Money from the water-sewer fund is the least expensive way to deal with the cash-flow problem. The benefits are a low interest rate and no typical finance charges.
The city receiver has suggested that council borrow about $4 million. This will help pay general fund expenses, such as payroll, health care benefits and workers comp insurance, for January and February.
Harrisburg City Council is asking Dauphin County Court to approve a loan from the water and sewer fund with a promise to pay it off within six months. Local governments often borrow money at the beginning of the year as they wait for residents to pay their taxes.
Because of Harrisburg's fiscal crisis, banking institutions aren't willing to lend the city money. So City Receiver William Lynch suggested opening a line of credit with the water and sewer fund at a favorable one-half percent.
But City Controller Dan Miller, who opposes the receiver's plan, is also against borrowing more money.
"As far as borrowing more money, it will only exacerbate the problem,” City Controller Dan Miller told us. “It doesn't solve anything. We've had several years now. And all we continue to do is borrow, make the hole bigger, dig it deeper, and we're not solving any problems. I think this is a big mistake. We need to get into bankruptcy as soon as possible."
Other critics say the money should go to repair the city's deteriorating infrastructure. Three sinkholes opened up last week in the 2100 block of North Fourth Street. Residents were asked to leave their homes when water and gas services were interrupted.
However, the city needs the money to pay its bills. Money from the water-sewer fund is the least expensive way to deal with the cash-flow problem. The benefits are a low interest rate and no typical finance charges.