Mayor says Harrisburg could sell city assets by Q3 2013

Thu Dec 20, 2012 3:01pm EST

Related Topics

Dec 20 (Reuters) - The city of Harrisburg, Pennsylvania's cash-strapped capital, expects to sell its parking garages and other assets by the third quarter of 2013, Mayor Linda Thompson said in the city's 2010 audit, released on Thursday.

The long-awaited audit provides another glimpse into the depth of past financial problems in Harrisburg. The city filed for bankruptcy in October 2011, only to have a judge later throw out its petition.

The city is mired in more than $340 million in debt tied to repairs and upgrades of its incinerator.

To pay down that debt, Harrisburg's state-appointed receiver is trying to sell or lease city-owned parking garages, the incinerator and the wastewater system.

For months, receiver William Lynch has been in final negotiations to sell the incinerator to the Lancaster County Solid Waster Management Authority. In late July, he narrowed to four the list of possible buyers for the parking garages.

With the sale of assets, "We anticipate entering 2014 with the incinerator debt eliminated from the city books," Thompson said in the audit.

The city did not release its 2009 comprehensive annual financial report until July of this year.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

How to get out of debt

Financial adviser Eric Brotman offers strategies for cutting debt from student loans and elder care -- and how to avoid money woes in the first place.  Video