Hearing him speak, Harrisburg receiver David Unkovic doesn’t appear to be the big, bad overlord that many had feared.
He seems thoughtful, considerate, even well-intentioned—a man who says he truly wishes to do right by the people of Harrisburg.
Can he really be the product of SB1151, the legislation that led to direct state control of the city, a law that Mayor Linda Thompson has called “punitive” and that many others have said is simply mean-spirited? Can he be the person stereotyped at first as a lackey of the financial industry and city’s creditors?
As the cliché goes, the proof is in the pudding—and the pudding will be Unkovic’s financial recovery plan for the city, due to be unveiled on Feb. 6.
But, so far, and particularly at a Harrisburg Hope community forum last month, Unkovic has impressed many with his concern for the city and its beleaguered residents.
“As receiver, I’m going to do what’s best for the citizens of Harrisburg and the commonwealth,” he said.
Unkovic spoke for about 90 minutes to an overflow crowd gathered at Midtown Scholar Bookstore. For most of that time, he answered audience questions, which ranged from his background as a bond attorney to his negotiations with creditors who hold more than $310 million in bonds due to repeated refinancing for numerous upgrades to the city incinerator.
Much time was spent on his opinion that the city’s creditors may have to accept less than 100 percent repayment as part of a negotiated settlement.
“It will require sacrifices by many entities with interests in the city,” he said. “In order for the plan to work, everyone will have to contribute.”
Unkovic said he has learned much since he was nominated by Gov. Tom Corbett for the post of receiver.
Notably, he learned of the details of various financings and refinancing of incinerator debt, deals that he described as having “unusual actions in them,” including the lack of a performance bond that should have guaranteed work on a botched incinerator retrofit by Barlow Projects, as well as the complex structuring of the 2007 incinerator financing.
Unkovic said he also has learned that Harrisburg residents feel victimized by forces beyond their control, such as failed political leadership, the actions of financiers and a lack of sympathy from others in the region.
“This is also a political situation, not just a financial situation, and it involves the lives of the people in this city—all 49,500 people,” he said.
“It’s important to look at it from a community perspective,” he said. “How did a city of this size, not a large city, end up with so much debt?”
Unkovic did not shy away from the fact that the city owes about six times its annual budget just in incinerator debt, which will require it to sell or lease municipal assets, beginning with its valuable parking garages. In addition, Harrisburg faces large and growing deficits in its annual operating budget which has made it increasingly tough to meet payroll.
Still, he believes that a return to solvency is possible.
“My goal is that, five years from now, the city will be in good financial condition, not just kicking the can down the road,” he said.
Unkovic last month set up a website so residents can review documents and make comments online. The website is www.pa.gov/harrisburgreceiver.
