HCA do not need new loan
An authority official said Hazleton City Authority likely won’t have to secure new loan to make its annual services payment to Hazleton city in 2012. Larry Patton, Business Manager believes the authority will have enough money to left from term loans that its Industrial Division and Water Department secured over the past two years. It is to satisfy a roughly $400,000 payment which will be due to the city early next year. HCA officials are examining cash-on-hand which could be put toward the payment. It will result in the authority having to draw smaller amount of loan funds to meet its obligation.
Since October 2010, the payment is the result of an economic agreement and master services that has been in place. The agreement was enables the authority to purchase services from the city’s health, police, zoning departments and code enforcement and it was written in accordance with the Municipal Authorities Act. The authority agrees to make annual payments to the city over a 15-year period in exchange for those services. The authority will provide economic development services and tower leasing management and purchased waste management services from the city. Lou Barletta, Former mayor pushed for deal as alternative to his initial proposal to sell the water system. The deal allowed the city to recall furloughed the city workers.