A state-appointed board to supervise Harrisburg’s funds rejected town’s 5-year spending plan this week, citing alleged deficits and an absence of detailed info.
The Intergovernmental Cooperation Authority voted 4-0 in opposition to the proposal at its assembly Wednesday.
The board was created by the General Assembly in late 2018 when legislators agreed to permit town to maintain its expanded taxing authority even after it exits Act 47.
Below state regulation, town is required to submit a five-year plan for the board’s evaluate throughout yearly. The plan is meant to “get rid of projected deficits, implement sound budgetary practices, and supply procedures to keep away from a fiscal emergency situation sooner or later,” in keeping with a information launch issued by the board Friday afternoon.
The regulation, generally known as Act 124, additionally mandates that the board reply in writing to town to specific any points with the proposal. However Harrisburg Mayor Eric Papenfuse stated he nonetheless had not acquired any official correspondence from the board.
“I’m assured town submitted a plan in compliance with Act 124,” Papenfuse stated. “The truth that this was communicated by press launch and never the method specified by Act 124 raises crimson flags, however I’m assured as soon as we obtain the correspondence we’ll have the ability to deal with the considerations.”
Audry Carter, chair of the board, nevertheless stated she did actually ship an e mail notifying Metropolis Solicitor Neil Grover of the board’s determination 5 minutes after the assembly Wednesday night time.
The connection between Papenfuse and the some members of the board have been fraught for the reason that starting. The city filed a lawsuit against the board earlier this yr alleging its members wouldn’t permit town finance director to attend month-to-month board conferences. The 2 sides additionally clashed over a proposed financial improvement symposium deliberate by the board with out enter from town.
The authority cited 5 alleged causes for rejecting town’s five-year plan. The board members stated:
- The Neighborhood Companies Fund, which accounts for income and bills of town’s trash assortment companies, demonstrated annual deficits and “factors to a development of this fund steadiness approaching depletion.”
- A schedule of projected capital commitments for the Neighborhood Companies Fund was not included.
- Monetary info from an Inter-municipal Sanitation Settlement with the Borough of Steelton seems “faulty” as a result of it didn’t element doable extra prices corresponding to journey time concerned in assortment, depreciation prices on the vans, gasoline prices, and so on.
- The plan lacked supporting info for capital enchancment initiatives, together with particulars, descriptions, and all sources of funding.
- The plan lacked supporting info for brand spanking new initiatives, together with “a big enhance in headcount from 462 to 512 FTEs and a brand new Group Companies Division.”
Papenfuse disagreed with the factors outlined within the information launch and stated the Neighborhood Companies Fund is balanced as required by regulation and that the settlement with Steelton isn’t faulty.
He stated the 2021 funds and proposed new initiatives have been authorised by Metropolis Council after weeks of funds hearings and public enter. Town has 15 days to submit revisions.
Editor’s Word: This text was up to date with a rebuttal from Audry Carter.