ABC27 WHTM Has outlook improved for Harrisburg getting short-term loan?

Has outlook improved for Harrisburg getting short-term loan?

The City of Harrisburg is still hoping to come up with a way to make payroll and its debt payment for September, as work continues toward getting a $7.5 million dollar loan through the city's parking authority.

But that loan is definitely still not a certainty.

Attorney Corky Goldstein, who has been working with Mayor Linda Thompson as an unpaid advisor, said it appears some headway was made Thursday toward making a deal with a lender.

"I just left a meeting with the mayor," Goldstein said Thursday night. "And I think that we have some very good opportunities here and I think there's a good chance we will come up with a plan that we think we will be able to present to City Council."

Even if the loan does go through, there will be little rejoicing among city officials because they have to borrow money just to pay bills.

"We're going to borrow $7.5 million just to get through the year only and pay millions of dollars in interest," councilwoman Patty Kim said. "It doesn't make business sense, but we are at that point."

Kim said that if the loan does not go through, the city will likely have no other help coming. She said after Council rejected the mayor's financial recovery plan, the state, the county and bond-holders will probably not have much sympathy.

"I think this is what may break the camel's back and just have the city suffer before we can get help," she said. "I think they're going to let us dangle a little bit and feel the repercussions of our vote on Tuesday."