Harrisburg preparing to default again on incinerator bond debt

HARRISBURG PATRIOT-NEWS:  According to documents obtained by the Patriot-News, the City of Harrisburg and The Harrisburg Authority are preparing to default again on incinerator bonds.

A memo from Chris Feese, the Authority’s finance director, to Bob Kroboth, the city’s finance director, dated April 9 says the Authority is unable to make the May 1 debt service payment on its 2002 Series A bonds.

A subsequent email from Kroboth to various people impacted by the news sent this morning says: “Unfortunately, the City’s current financial situation precludes us from making any transfers to the Trustee to cure any debt service funding and debt service reserve deficiencies on these Notes at this time.”…   (more)