Title page from the proposed five-year financial plan
Harrisburg’s financial oversight body has voted down the city’s revised five-year financial plan, citing several alleged deficiencies in the proposal.
At Wednesday’s meeting, the Intergovernmental Cooperation Authority (ICA) voted 4-0 to reject the plan, which the city must update every year.
“The City of Harrisburg’s proposed five-year financial plan demonstrates a stable fiscal position, with a strong General Fund balance and relatively resilient revenues in spite of the global pandemic and economic crisis,” said board chair Audry Carter, in a press release. “However there remain areas of significant concern highlighted in the proposed plan, which we will work with the city to address.”
On Dec. 14, the city submitted its plan to the ICA, which the state legislature has charged with overseeing and approving a five-year financial recovery plan for Harrisburg. That plan is updated each year.
Reached by telephone, Mayor Eric Papenfuse said that he was unaware of the ICA’s reasons for rejecting the plan until the state-appointed body issued a press release on Friday.
“We were blindsided by the press release,” he said. “We have no record in writing of any communication from the ICA.”
Board vice chair H. Ralph Vartan said that the board had indeed informed city Solicitor Neil Grover of the plan rejection immediately after the meeting on Wednesday.
“It is obviously important that, as a public authority, the ICA communicate significant findings with the public and the media,” he said.
Papenfuse later clarified that, while Grover had received notification of the rejection, the city hadn’t received “an official correspondence stating in writing . . . the reasons for the disapproval,” as were stated in the press release.
The ICA specifically cited five “deficiencies” in its analysis, including a claim that the city’s Neighborhood Services Fund showed annual deficits and that the agreement to pick up Steelton’s trash did not follow “generally accepted accounting principles.”
Papenfuse refuted these points, stating that the Neighborhood Services Fund is not in deficit and that the agreement with Steelton is not “defective,” as charged by the ICA.
The city has 15 days to submit a revised plan, though the ICA stated it would give a “reasonable extension” if requested.
“If the board finds deficiencies and thus disapproves, the mayor is given an opportunity to amend the plan,” said ICA Manager Jeffrey Stonehill. “The authority members and I look forward to working with the administration on resolving these issues.”
Papenfuse said that he also looks forward to resolving any issues the ICA board might have with the city’s proposed five-year plan. However, first, he said, he needs official communication of the ICA’s objections so that the city can respond.
“We had submitted a plan that is fully compliant with the act,” he said. “But we are happy to work with the ICA to address their concerns.”
To read Harrisburg’s recently submitted five-year financial plan, visit this link: 12.14.20-City-of-Harrisburg-Five-Year-Plan.
This story was updated to include comments from H. Ralph Vartan and Mayor Papenfuse.
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