Harrisburg Happening

Wednesday, November 15, 2006

Reed still wants his way

According to the latest, the $7 million loan Commerce gave the City will mean no cops are laid off. Instead, some city managers will go. And Reed wants city coucil to approve $10.5 million in another loan, to repay the $7 million plus cover the rest of the shortfall for the year. He wants to take 10 years to pay that off.

Does anyone else think this is odd? Remember, Commerce approved a revenue and tax anticipation loan. Presumably, someone at the City certified they had that much coming by the due date on December 31. Now it will be repaid with more loans? Did the City certify it had the money coming falsely? Loan proceeds are not revenue or taxes by any definition.

And if City Coucil does not approve the long term loan? Will Reed say it's their fault the City defaulted?

I'm sure glad I don't have money in Commerce Bank. . .

Here's what Reed is quoted as saying in the Patriot:

"Reed said he would propose a 2007 budget that would avoid additional layoffs as long as city council is willing to approve a long term $10.5 million loan. The 10-year bank loan would repay the short-term, $7 million loan received today and would cover a part of the remaining $6.8 million deficit for 2006. "


Post a Comment

<< Home