City of Harrisburg Mid-Year Budget Review - An assumption of obligation versus an assumption of cash flow

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(Part 1) )On Wednesday, August 29th, the City's Director of Finance Bob Kroboth presented the Mid-Year Budget Report to Harrisburg City Council Budget & Finance Committee. The June 30th report originally projected a $6.0 million deficit, but Kroboth says since the Harrisburg Receiver has decided not to pay the September 15th City general obligation bond payment, the Thompson Administration is now projecting only a $2.6 million end of year deficit. When asked about the difference between the Administration's projection and the Office of the Receiver's projection of $12.6 million as well as the City Controller's projection of $13.6M, Kroboth explains it's because the Receiver and the Controller are adding in debt obligations and previous year deficit carry overs. The Administration is not. "We agree. We have that obligation, but from a cash flow perspective, it's $8.6, almost $8.7 million less."---Tara Leo Auchey

Photo/Natalie Cake

 
Tags: Act 47, Bankruptcy, Bob Philbin, Budget, Chapter 9, Chief Ritter, Harrisburg, Mayor Linda D. Thompson, Police