Front page leed article “Lancaster city nears No. 1 in Pennsylvania in debt per capita” reports:
“According to data from the Pennsylvania Department of Community and Economic Development, Lancaster ended its fiscal year 2011 with $221.6 million in total debt — and with a population of 59,322, that works out to $3,735.15 for every man, woman and child living in the city.”
“That includes debt from the Lancaster Parking Authority — which totaled $28.6 million at the end of 2011 — because the city guarantees that debt. It does not include the debt of the city Redevelopment Authority, as the city doesn’t guarantee that.”
“The city may need to guarantee any borrowing done by a new authority overseeing the proposed City Reinvestment and Improvement Zone. Gov. Tom Corbett signed the legislation, sponsored by Sen. Lloyd Smucker, R-Lancaster, in July. Lancaster is expected to be the first city in the state allowed to implement the program, which would allow the city-created authority to issue bonds to finance improvements and redevelopment within a zone.”
WATCHDOG: Either the writer ignored or, more likely, the editor deleted all mention of the City’s $36 million in RACL bonds to fund the Marriott Hotel. Such purposeful omissions should come as no surprise.
We are at a loss as to why the articles states that the City has not guarantee these bonds. RACL only serves as a conduit.
We also learn that the City may have to guarantee millions more in CRIZ debt generated to bail out the finances of the Convention Center Project.
