Tweet Stream from PA Senate Local Government Committee Hearing

As it happened.

For the sake of getting a chronicle out of the first Pennsylvania Senate Local Government Committee hearing on the “Debt Structure of Distressed Harrisburg Incinerator,” I’ve transposed my tweet coverage I did for Roxbury News. Below is the stream of my live broadcast from the room as the proceedings took place.

Without a doubt, this event deserves a careful analysis. There are definitely some points below that require clarification and elaboration, pause and discussion, pondering and consideration. However, that will best be done with some days of reflection.

This live-as-it-was happening sequence is in readable order. As is. Typos and spelling errors, remain. It’s best to give you the raw event as it happened.

Remember, as tweeting goes, read from the bottom to the top for chronological order. If you scroll down to the “end,” you’ll see it’s really the beginning. The hearing began at 10:10am and adjourned at 4:30pm with a 20 minute lunch break.

Also, as noted above, I tweeted the proceedings for Roxbury News.

The next hearing is scheduled for October 29, 2012.

END 4:30pm

And with that, I bid farewell, thanks for following, thanks for comments, (thx for tolerance). Tara Leo Auchey @todaysthedayHBG signing off!
Also for those of you who can’t get enough: Here’s archive CIT articles: http://www.todaysthedayhbg.com/the-trial-tha-vs-cit-part-1/ …. Here’s #HBGdebt info: http://www.todaysthedayhbg.com/category/public-info/harrisburg-debt-crisis/ …
In case you want more, visit http://www.roxburynews.com/index.php & its new user-friendly search. Look up the players & witness the history of #HBGdebt.
And folks, that’s it. PA Senate Local Govt Cmte hearing adjourned. Next hearing Oct 29th. #tisover
In the last few moments of PA Senate Cmte hearing, Bill Cluck has panel of Senators fixated on his detailed knowledge of history of #HBGdebt
Bill Cluck points out @RoxburyNews has recorded many a mtg. Here’s Cluck in 2007 calling for a Forensic Audit: http://www.roxburynews.com/index.php?a=5140 … #HBGdebt
Shout out to @RoxburyNews during PA Senate Cmte hearing testimony! #ontherecord
Archive Video: HBG Mayor Reed talks “Arbitrage Unrestricted” http://www.roxburynews.com/index.php?a=5046 … #HBGdebt
PA Senator Folmer asks Cluck who else should Cmte bring forth? Cluck says, James Barlow. #HBGdebt
Cluck refutes Reed’s claim of Barlow technology being great. Wants Senate Cmte ask Covanta. (during CIT, Covanta testified it sits as junk)
Cluck: 2003 HBG City Council held up the votes to get WAMs & increased the amount of borrowing. Illegal? No. #HBGdebt
Back to Councilmanic Funds of 2003. Money for vote on retrofit project? pp49-50 of Forensic Audit Report. How biz done: http://www.roxburynews.com/index.php?a=5394 …
Cluck: HBG Mayor Reed spent millions of dollars traveling around the country collecting. That’s why we have the Civil War Museum. #HBGdebt
Cluck: “Let me tell you about Special Projects.” @TheHbgAuthority passed a resolution giving HBG Mayor power to spend $. He Bought artifacts
Like Papenfuse before him, Cluck says there should be more law investigations into the #HBGdebt issues.
Cluck says as attorney, he’s never heard of PA DCED’s process of taxpayer complaint to stop Clear Cert process. Where publicized? #HBGdebt
Today, Dauphin County’s tipping fee about $78/ton. City of Harrisburg’s fee is $200/ton (second highest in USA aside from Hawaii, I think).
In 2000, because Dauphin County agreed to close landfill & bring waste to HBG Incinerator, retrofit could happen. #HBGdebt
Cluck explains the story of Dauphin County & City of HBG Waste Management Agreement of 2000. Background: http://www.todaysthedayhbg.com/hbg-financial-forum-part-1-how-did-we-get-here/ …
Bill Cluck moves from legal opinions, political cronyism, and PA DCED statute. “Is this another statute with no teeth?” #HBGdebt
Cluck refers to HBG CC vote retrofit financing 11/5/2003. Atty Mike Ewall: “This project will bankrupt the City.” Hear: http://www.todaysthedayhbg.com/podcast/audio-harrisburg-city-council-2003-vote-on-the-incinerator-retrofit-part-1/ …
Cluck: No one did a due diligence examination of Barlow. No one did a background check to see if they could handle HBG Incinerator. #HBGdebt
Cluck talks of feasibility reports conducted for HBG Incinerator retrofit. Plan adjusted to fit finances. Engineering compromised. #HBGdebt
Cluck pointing out that the Barlow negotiations began in 2000, 3yrs before 2003 financings. Long negotiations w/many tweaks. #HBGdebt
Although a current @TheHbgAuthority Board member, Bill Cluck emphasizes he is not there rep’ing THA. There was citizen. #HBGdebt
Lispi done. Last but not least—William Cluck. Last testifier of the day at PA Senate Cmte hearing on #HBGdebt.
What about fact @TheHbgAuthority claimed” the City called the shots? Lispi: The City had a lot of input. I looked at it as a team.” #HBGdebt
What do you know about the Special Projects Fund? “I don’t know anything about it,” Lispi says. All @TheHbgAuthority. #HBGdebt
Special Consultant to HBG Incinerator Dan Lispi project says he never talked about lack of performance bond w/HBG Mayor Reed. #HBGdebt
Back to lack of performance bond, Lispi says, “I believe it was legal, that it met the requirements of the law at the time.” #HBGdebt
When asked to do to make sure #HBGdebt doesn’t happen to other PA municipalities, Lispi says, “I just don’t know how you eliminate risk.”
Lispi’s only regret is that the City of Harrisburg didn’t fire Barlow earlier. #HBGdebt
PA Sen Folmer: Common theme today is “No one did anything wrong,” but how’d THA, City of HBG, & Dauphin Cnty get so much debt for taxpayers?
Lispi says the problem wasn’t a “performance bond” issue. Wouldn’t have matter, he claims. #HBGdebt
Lispi says none of the engineers who looked at the project anticipated the ash issues that surfaced. “It was an engineering flaw.” #HBGdebt
Lispi says no one talking about what really what went wrong. “What really went wrong was the backend of the facility.” Ash issue. #HBGdebt
Lispi: I don’t know how you prevent something like this from precisely happening. There’s risk w/all construction projects. #HBGdebt
Lispi: “While there’s a grain of truth to everything, the security didn’t address the problem.” #HBGdebt
Lispi says despite what is stated, there were bonds on all who were working on the HBG Incinerator retrofit. Security. #HBGdebt
Lispi is explaining why Barlow Projects was the chosen one to do retrofit. Barlow brought new technology at lowest price. #HBGdebt
Lispi: It was the best decision based on the information we had at the time [to retrofit the HBG Incinerator]. #HBGdebt
Lispi says in the end after “all ideas explored,” it was determined that the best thing to do was to retrofit the HBG Incinerator. #HBGdebt
Lispi: Contrary to misstatements, there was “an exhaustive” process in 1990s to try to find alternatives to HBG Incinerator issues. #HBGdebt
PA Sen Blake: HBG Incinerator wasn’t done on time or on budget. Asks Lispi to explain decision process to “double down.” #HBGdebt
Dan Lispi says it’s debatable how much of HBG Incinerator debt is “self-liquidating.” Ways to say some is, while some is stranded debt.
Dan Lispi says reading HBG Incinerator Forensic Audit Report & listening to PA Senate Cmte hearing proceedings, many innuendos & misinfo.
Now up, Special Consultant to @TheHbgAuthority on HBG Incinerator project, Dan Lispi. Self-proclaimed one who knows the most about Retrofit.
Okay everyone! Tara Leo Auchey @todaysthedayHBG here taking up your tweet stream since 10am. We have on more hour left, two more testifiers.
And with that, former City of Harrisburg Mayor Stephen Reed steps away. #HBGdebt
PA Senators not giving up on “Special Projects Fund.” Reed claims that’s @TheHbgAuthority money. He didn’t have say in how spent. #HBGdebt
Wild West Museum? Former HBG Mayor Reed says he only heard about money going to that from HBG Incinerator financings “later.” #HBGdebt
Archive video: Special Projects Fund October 14, 2007 http://www.roxburynews.com/index.php?a=936
What of fees City of HBG received for Incinerator financings? Went to Special Project Fund? Reed says recollection is used to pay employees.
PA Sen Eichelberger asks Reed why he thinks Dauphin County got involved in HBG Incinerator finances? Reed: Probably not to reopen landfill.
Reed says, “It’s probably not a good idea” for a government body to own such a sophisticated entity such as the HBG Incinerator. #HBGdebt
The real problem? Per former HBG Mayor Reed, Barlow Retrofit was “significantly underestimated. That’s the genesis of all this.” #HBGdebt
(also point to note, Giorgione and Lispi negotiated terms of CIT loan directly with CIT reps via many emails & phone calls)
Reed on CIT loan: The City played almost no role in discussions with them. All Barlow. (what about Lispi & Giorgione visit to NYC?) #HBGdebt
Mayor Reed: “Got into a whole quagmire with Dauphin County but that’s another story.” #HBGdebt (for another time?)
Characteristic former HBG Mayor Reed answer: “At that time, that’s what we had in front of us.” #HBGdebt
Mayor Reed: The technology involved in the Barlow Retrofit works, it gets high acclaim. (that’s not what experts at CIT trial said) #HBGdebt
Reed: Hindsight being 20/20, there was no info in front of THA, Dauphin County, or the City that the numbers & cash flow would be different.
Former HBG Mayor Reed claims what others before him today have claimed–the professionals advised and guided his decisions. #HBGdebt
Mayor Reed again says if he would’ve known the cost of the Barlow Retrofit beforehand, would have never done the project. #HBGdebt
Mayor Reed: I heard about the lack of a performance bond of Barlow after the fact. #HBGdebt
Former HBG Mayor Reed lastly offers his services to the PA Senate Cmte & to DCED to help draft the amendments to Debt Act. #HBGdebt
Mayor Reed: PA Debt Act should be amended to make DCED have to review all “self-liquidating debt” claims. #HBGdebt
Reed is now suggesting that the State change the Local Govt Unit Debt Act. Says DCED should expertly review project proposals. #HBgdebt
Mayor Reed: Not having accurate upfront estimates has had an adverse effect on the City of HBG. #HBGdebt
Reed declares review of Barlow Retrofit (2003) was public. Public access, public meetings. It was “not questioned or challenged.” #HBGdebt
Reed on Barlow Retrofit: How were the initial project costs so underestimated? To this day, I’ve never heard an answer. #HBGdebt
Former Mayor Stephen Reed reads from a prepared statement about the HBG Incinerator. Goes back to 1970′s & presumably he’ll map out probs.
One of Clark’s last comments was @TheHbgAuthority‘s direction came from the City of Harrisburg. Many say City of HBG=Mayor Stephen Reed.
Clark done, former City of Harrisburg Mayor Stephen Reed takes to the table of testimony. #HBGdebt
Clark: Hiring Barlow, no THA discussion. However, CIT, there was discussion to pass loan w/o HBG City Council’s approval. We were told okay.
Clark: @TheHbgAuthority wasn’t involved w/hiring of Barlow. “I believe that was the City’s responsibility.” They brought it to us. #HBGdebt
Fred Clark: “We were told if we hire this company, we would have an Incinerator that’s up and running.” (company was Barlow) #HBGdebt
Fred Clark emphasizes that many of them w/voting power to institute the 2003 Incinerator borrowings counted on professionals to guide them.
Clark: I don’t think HBG Council knew there wasn’t a performance bond. I don’t think Dauphin County knew. When it came to THA, no questions.
What are Fred Clark’s thoughts on the lack of a Barlow performance bond to do the retrofit? He says he wasn’t expert enough to ask about it.
Clark said as @TheHbgAuthority Board member, he & others counted on professionals to guide them–Dan Lispi, Andy Giorgione, & THA Exec Dir.
What about page 49 of #HBG Forensic Audit Report saying Reynolds & Fred Clark got paid $1M to deliver votes? Clark doesn’t know what that is
Fred Clark says he recused himself from @TheHbgAuthority Board vote on 2003 Incinerator borrowing. #HBGdebt
Clark employed by Reynolds Construction. Reynolds did work on HBG Incinerator. Clark Chaired THA Brd in 2003 during financing vote. #HBGdebt
PA Sen Folmer asks Clark about conflict of interest re: 2003 Incinerator borrowing & his work at Reynolds Construction. #HBGdebt
Fred Clark: No one contacted me to be involved in HBG Incinerator Forensic Audit Report. “No one.” #HBGdebt
Fred Clark, former @TheHbgAuthority Board Chair testifying now. Notoriously on the down low about his involvement in #HBGdebt
(we have a TON of archive videos of names Eric Papenfuse named talking of the HBG Incinerator finances…search names: http://www.roxburynews.com/ )
Papenfuse says the names he named should be made to testify in front of the PA Senate Local Govt Cmte hearing. Subpoena power. #HBGdebt
Papenfuse also calls out Dauphin County financial advisor Jay Wenger (Susquehanna Group Advisors) & Bruce Barnes (Milt Lopez). #HBGdebt
Papenfuse naming names to PA Senate Cmte: Attys Chuck Zwally (Mette Evans), James Ellison (Rhoads Sinon), Carol Cocheres (Eckert). #HBGdebt
Former @TheHbgAuthority Board member Eric Papenfuse: Law enforcement arms have let the citizens of Harrisburg down. #HBGdebt
Archive video: Forensic Audit Report: Look what Mayor Reed bought. Artifacts! http://www.roxburynews.com/index.php?a=2745 …
Papenfuse: To understand the #HBGdebt, you have to understand the HBG Special Projects Fund (artifact purchases) & professional fees.
Papenfuse tells PA Sen Blake he wasn’t aware of DCED process & was working with FBI b/c that’s where he made his complaints. #HBGdebt
PA Senator Blake to Papenfuse: PA DCED said a taxpayer complaint could’ve stopped Clear Cert process? Did you do that? #HBGdebt
Eric Papenfuse November 14, 2007 Hbg Authority meeting Covanta Loan 2007 http://www.roxburynews.com/index.php?a=93
Papenfuse’s theory is 2007 HBG Incinerator financing was pushed through even though debt was not self-liquidating. People in place did that.
Papenfuse theory of 2007–Reed marginalized by ppl who wanted Linda Thompson elected. “Not upset the apple cart at that time.” #HBGdebt
Back to Eric Papenfuse’s testimony. Former HBG Mayor “Reed told people what to do and they did it.”#HBGdebt
Bernadette Barratini: “I made no money off of any of this.” #HBGdebt
Barratini: “I do not recall specifically” of HBG finances. She says she does 700-1200 debt proceedings a yr in her time at PA DCED. #HBGdebt
Barratini come to table: “This kind of allegation is absurd!” She says there’s no connection b/t her work on #HBGdebt & her new employment.
Papenfuse: Mette, Evan, & Woodside benefited greatly from 2007 HBG Incinerator borrowing. Not surprising Barratini can’t recall all details.
In true Papenfuse style, calling out professionals involved in #HBGdebt. Calling out Barrantini for now employed by Mette, Evans, Woodside.
Papenfuse: “No one in their right mind would think the debt was self-liquidating.” #HBGdebt
Papenfuse ended up quitting @TheHbgAuthority Board in protest after only a few months when Board decided to approve 2007 borrowing. #HBGdebt
In 2007, Eric Papenfuse was placed on the @TheHbgAuthority by HBG City Council to replace Mayoral appointees including Fred Clark (up soon).
Former @TheHbgAuthority Board member Eric Papenfuse (2007): “There was a deliberate attempt to circumvent the Debt Act.” #HBGdebt
If following our 10am-4:30pm coverage of PA Senate Local Govt Committee hearing on #HBGdebt, this is Tara Leo Auchey @todaysthedayHBG.
Now at the testimony table at PA Senate Cmte hearing on #HBGdebt, former @TheHbgAuthority Board member Eric Papenfuse.
Last note of PA DCED on Local Unit Debt Act & #HBGdebt: Only way to catch wrongdoing, taxpayer complaint or criminal complaints to Atty Gen.
Eichelberger reform scenarios: 1) change process 2) beef up DCED to oversee current process 3) install severe penalty for falsity. #HBGdebt
PA Sen Eichelberger cuts to the chase relieving a stuttering Barratini after asking her if she’d pass HBG again if had to do over. #HBGdebt
Former PA DCED Chief Counsel Barratini: How is DCED supposed to know if a municipality has problems? HBG had certified paperwork was correct
Keep in mind, PA DCED “corrections” are t’s dotted & i’s crossed, not analysis of municipality’s actual debt issuance ability. #HBGdebt
PA Sen Eichelberger: How many debt statement/clear certs are turned down every year? #HBGdebt DCED: 99.9% of the time are corrected & passed
Confusing explain about what offered & what isn’t offered to DCED by municipality when new debt is issued. No doubt Senators confused, too.
DCED gives Sen Folmer curious answer to his question about liability for false statemtns. DCED: Liability needs to come from somewhere else.
What’s the DCED penalty for a municipal misrepresenting debt statements & clear certs? #HBGdebt
PA DCED on Clear Certs: “We rely entirely on what’s told to us. We rely on the accuracy and truth of what’s presented to us.” #HBGdebt
Barratini: Debt statement & Clear Certification (attesting to self-liquidating debt) signed off by Mayor & Controller in instance #HBGdebt.
Barratini on HBG Incinerator project: “I don’t recall seeing a project quite like this one. It’s unique.” #HBGdebt
PA Senator Blake acknowledges the limitations of PA DCED to catch problems such as #HBGdebt.
That seems to be the State’s message. #HBGdebt RT @munilass: @RoxburyNews “In other words, we rubber-stamp bond issues.”
Barantini: DCED review of municipal debt request, “It’s basically a legal review that meets the requirements of the statue.” #HBGdebt
Tidbit of info: former PA DCED Chief Counsel Bernadette Barratini is now w/law firm of Mette, Evans, & Woodside (firm reps Dauphin County)
Former Chief Counsel Bernadette Barratini: Even if we don’t agree w/the municipal debt request, we’ve no say. Matter of glaring errors only.
Former Chief Counsel for PA DCED: “Unless there is a taxpayer complaint….there was none filed in relation to the HBG Incinerator issues.”
PA DCED atty makes excellent point-local govt officials don’t typically understand financial terms. (chuckles) “Not many professionals do.”
PA DCED atty points out, though, DCED has no jurisdiction over municipal authorities. In case of HBG, @TheHbgAuthority who owns Incinerator.
DCED atty: When looking at the City of Harrisburg, it does look like debt service was not level b/c so much was pushed down road. #HBGdebt
DCED: Do allow municipalities to “wrap their debt.” Can put all together, put new debt in conjunction w/other debt so debt service’s level.
DCED: Basically, just looking that municipality debt request crossed t’s & i’s. “We’re not in a position to second guess it.” #HBGdebt
DCED: Proceedings come to State fairly late in process. By time DCED sees request, municipality already accrued debt w/ordinance. #HBGdebt
DCED: Once PA DCED gives its approval of a municipality’s debt proceedings, it cannot be challenged. Not even in Court. Final. #HBGdebt
Another fact to pull from PA DCED presentation–if municipality hits its debt limit, can ask Court of Common Pleas for emergency exception.
Jim Stanton ‏@VisualsForAll: @RoxburyNews Well done; best consistent live tweeting on gov mtg I’ve seen. You running camera too? #onemanband
.@VisualsForAll Thanks for the kudos! But FYI tweets are Tara Leo Auchey @todaysthedayHBG. James Roxbury=the camera. #team
Two things make note of: 1) PA Local Unit Debt Act (LUDA) determines types of debt & municipal debt limit 2) PA DCED oversees LUDA. #HBGdebt
Basically, what DCED is presently doing at PA Senate Cmte hearing on #HBGdebt is giving a technical explanation of the Local Unit Debt Act.
PA DCED atty Tim Anstine: Voter-approved debt is rare. Most common is debt issued directly by local govt (& backed by taxpayers). #HBGdebt
Interesting fact–PA Local Unit Debt Act allows 3 types of debt: electoral (voters approve), non-electoral (govt issues), lease/rental debt.
Fred Reddig turns the mic over to a PA DCED atty, Tim Anstine, who’s using a powerpoint presentation he’s prepared. #HBGdebt
Remember significance of “self-liquidating debt” and #HBGdebt? Here’s the rundown again: http://www.todaysthedayhbg.com/the-harrisburg-incinerator-forensic-audit-report/ … #refresher
Key point of Reddig: PA DCED is responsible for overseeing the PA Local Unit Debt Act (this determines “self-liquidating debt). #HBGdebt
Fred Reddig reading to PA Senators: Debt borrowed, debt paid. “Ensuring fiscal stability of local governments.” (didn’t happen #HBGdebt)
Very bureaucratic testimony now from PA DCED’s Fred Reddig on what SHOULD happen in municipal borrowing process of public projects. #HBGdebt
Reading from a statement now Fred Reddig, Exec Dir, Gov’s Center for Local Government Services at PA DCED. Works on HBG’s recovery, too
Scuttlebutt is that PA DCED will be using a 78 slide powerpoint for their testimony to PA Senators. We shall see!
And we’re back. Tara Leo Auchey @todaysthedayHBG from the PA Senate Cmte hearing on #HBGDebt. PA Dept Comm & Econ Dev up now.
Thank you @parva_x @reeledge @DixieJo719!
Lunch! PA Senate Cmte hearing breaks for only 20mins. Tara Leo Auchey @todaysthedayHBG will be back. Thanks for bearing w/the tweets!
However, several people & entities refused to cooperate with HBG Incinerator Forensic Audit Report. #HBGdebt
PA Senate Cmte can enact subpoena power with majority vote. Have not enacted yet. Everyone today willingly participating.
PA Senator Blake covertly asking Goldfield if he believes PA Senate Cmte should enact subpoena power to compel reticent testifiers. #HBGdebt
Goldfield: Layers of subordinate debt continually rolled into #HBGdebt. Financially prudent? “That’s how they rolled this out thru 2000s.”
Here’s access to a worksheet entitled “Who Got Paid?”outlining several #HBGdebt professional fees: http://www.todaysthedayhbg.com/public-display/harrisburg-debt-crisis/ …
PA Senator Eichelberger: How much in total fees was paid to professionals over the course of #HBGdebt? Goldfield can’t give set number.
Here is former HBG Mayor Stephen Reed on HBG City Council Special Projects Fund saying it’s the way business is done: http://www.roxburynews.com/index.php?a=5394 …
PA Senators asking Goldfield about HBG City Council Special Projects Fund said to have influenced 2003 HBG Incinerator retrofit vote.
PA Senator Folmer asks Goldfield, who should’ve stopped the #HBGdebt borrowing? Goldfield: Not matter of specific who, matter of no one did.
Goldfield on SWAPs: It’s like a loaded gun. It can protect you but you have to be careful & trustworthy or it can go off & be very expensive
PA Senator Blake asks, Should municipality SWAPs be outlawed? Goldfield says can be used well, but “they’re not working very well” since ’08
Goldfield again emphasizes PA DCED “has a very small department” looking at the municipal debt requests. Self-liquidating debt? #HBGdebt
“Red is the shortfall.” Here’s the chart Goldfield’s referring to (years at bottom=1998-2012): pic.twitter.com/2lyxz9Yz
Bond Girl ‏@munilass: @RoxburyNews The project is under construction (and thus is not generating revenue to pay off the debt).
Bond Girl ‏@munilass: @RoxburyNews Capitalized interest is when you borrow additional money to pay the interest on money borrowed to finance construction while +
Bond Girl ‏@munilass: @RoxburyNews Synthetic variable rate debt is when you issue fixed rate debt and use an interest rate swap to convert it to variable rate.
New financial term of art introduced during PA Senate Cmte hearing on #HBGdebt–”synthetic variable rate debt.” Add that one to SWAPs.
Steven Goldfield: “The City has not yet released its 2010 Audit…” #HBGdebt
Goldfield (pointing at a chart): “There really was never enough money available for debt service and operational shortfalls.” #HBGdebt
Goldfield rhetorically asks questions all thinking: “Capitalized interest & working capital? What is it and how much should it be?” #HBGdebt
Goldfield: ‘Here’s $30M of debt that’s going to pay professionals. Loading up debt on a facility that really didn’t have a chance.” #HBGdebt
Archive Video: Dauphin County Counsel Chuck Zwally Discussing the 2007 C & D Notes (Part 1) http://www.roxburynews.com/index.php?a=5178 …
Archive Video: Dauphin County Commissioner Haste votes to approve the 2007 Series C and D Notes (Working Capital) http://www.roxburynews.com/index.php?a=5189 …
Goldfield: City of HBG & Dauphin County guarantees paid back w/2007 $30M working capital loan. Jumped the bondholders. #HBGdebt
Goldfield: “If anyone thought the City could cover this debt, they were out of their mind.” High interest, high risk. #HBGdebt
Archive Video: Linda Thompson questions Andrew Giorgione on the CIT loan. http://www.roxburynews.com/index.php?a=25
2005-2007: HBG was whirlwind of desperate borrowing trying to get HBG Incinerator up & running. CIT & Covanta loans. Both $25M. #HBGdebt
Goldfield: We did various analyses of #HBGdebt. Not a single analysis showed that any of the previous debt could be covered.
Barlow Retrofit was supposed to be saving grace that got the HBG Incinerator to a place to sell. Barlow failed & fired in 2006. #HBGdebt
Goldfield explains that HBG Incinerator public project couldn’t get out from under its capitalized interest. #HBGdebt
Goldfield: How’d #HBGdebt get to $330M? Guaranteed fees & restructures, nothing productive happening at Incinerator helped generate revs.
In 2003, debt of $104 could’ve been just that. But w/Dauphin County agreeing to bring its waste to Incinerator, Retrofit could happen.
Story of Barlow Retrofit is a story about Dauphin County closing a landfill & agreeing to bring its trash to HBG Incinerator. #HBGdebt
HBG Incinerator debt before 2003 retrofit finance=$104M. Back to the same ole same ole question—was the debt self liquidating? #HBGdebt
Now to Barlow Retrofit. New technology that was said would save HBG Incinerator. Goldfield says the City of HBG “became enamored with it.”
Goldfield explains just what @munilass was stating–so much of #HBGdebt was accrued to close City of HBG structural deficit budget gaps.
Steven Goldfield at the PA Senate Cmte hearing on #HBGdebt: “It may be legal, but why would you do it.”
Goldfield: State just doesn’t have the staff to first-hand analyze each of debt issues coming across the desk. “They call it on the papers.”
Some questions from PA Senators. Sen Blake up first w/?s about self-liquidating debt. Over & over again, State gave okay for more #HBGdebt.
Bond Girl ‏@munilass: @RoxburyNews The amount of the guarantee fees corresponded to the amounts they needed that year for government operations.
Bond Girl ‏@munilass: @RoxburyNews Seemed huge detail to me. Officials were using these transactions as short-term measure to address budget gaps.
Bond Girl ‏@munilass: I really, really wish I could explain to Pennsylvania Senate committee the mechanics of Harrisburg’s bond deals.
Early 2000s, another “scoop & toss” of #HBGdebt. Did anyone ever ask how much it’d cost? Goldfield declares $10M new “debt added to burden.”
“Let me introduce a new player,” Steven Goldfield says. “FSA which was bought out and now is AGM.” Insured ’98 & 2000 bonds.
Goldfield: In ealry 2000s, there were choices. “There were people in the City who said shut it down.” Not the choice made. #HBGdebt
.@munilass Touced upon but not yet elaborated. Slight mention of City of HBG fees gotten from restructuring of Incinerator debt.
Goldfield says HBG Incinerator told ppl who’re going to buy debt “we’re fully operational, but we’re not able to pay on ’98 & 2000 notes.”
Goldfield: By 2000, HBG Incinerator debt “had gone from bad to worse.” Restructuring was effectively reimbursing City for advance pymts.
Bond Girl ‏@munilass: @RoxburyNews “Breathing room” was also the purpose of some of the derivatives contracts, which essentially functioned as loans.
“Restructure” is current theme of PA Senate Cmte hearing as first testifier Steven Goldfield details complicated #HBGdebt. Senators nod.
Goldfield explains to PA Senators HBG Incinerator 98 $ restructure not for savings. Used “to create breathing room.” Says should’ve=signal.
Steven Goldfield and Royce Morris during Senate hearing on #HBGdebt pic.twitter.com/lr5iWNsW
Goldfield on ’98 HBG Incinerator bowwowing: “Scoop & toss.” Legal way to create working capital. Roll up the debt, and toss it out long.
Goldfield’s start point is 1993. At time HBG Incinerator $26M in debt. $7M borrowed to repair. Original debt=$33M. Today, debt over $333M.
Goldfield currently laying out timeline of HBG Incinerator debt saga. Here’s a worksheet of what he’s covering: http://www.todaysthedayhbg.com/hbg-financial-forum-part-1-how-did-we-get-here/ …
Steven Goldfield: Where did the money borrowed for construction of HBG Incinerator go? If not for construction. #HBGdebt
PA Debt Act permits construction project like HBG Incinerator to borrow $ for construct capital. But Goldfield says, $ wasn’t used for that.
Former HBG Receiver David Unkovic greatly concerned about Clear Certs State gave HBG to borrow for Incinerator. Goldfield talking same now.
Issue of #HBGdebt & “self-liquidating debt” huge contention w/Incinerator finances. PA Local Govt Debt Unit Act should’ve protected public $
Right now at PA Senate Cmte hearing on #HBGdebt, detailed explanation “self-liquidating debt.” Here’s a summary of it: http://www.todaysthedayhbg.com/the-harrisburg-incinerator-forensic-audit-report/ …
Goldfield also applauds @TheHbgAuthority for taking leadership role in getting the HBG Forensic Audit Report done. #HBGdebt
1st testifier PA Senate Cmte hearing Steven Goldfield says HBG Forensic Audit Report is a roadmap, but some trails lead down rabbit holes.
One of most significant professionals who contracted to advise City of HBG & Dauphin County=James Losty of RBC. He’s here today. #HBGdebt
Both PA Sen Eichelberger & Sen Blake listed ppl involved as not only City, County, & State officials but also contract pros. #HBGdebt
Co-Chair Sen John Blake: I fear that the people involved made decisions in self-interest & did not have public interest at heart. #HBGdebt
And the PA Senate Local Govt Cmte hearing on #HBGdebt comes to order.
Interesting group of observers of PA Senate Cmte hearing in room include HBG City Councilors Brad Koplinski & Patty Kim. Rep Glen Grell, too
Steven Goldfield of PRAG was part of team that produced the HBG Incinerator Forensic Audit. Since has been hired by State to help w/Recovery
PA Senate Local Govt Chair Senator Eichelberger has entered room along w/first testifier Steven Goldfield of Public Resources Advisory Group
Tara Leo Auchey @todaysthedayHBG sitting & ready for PA Senate Cmte hearing on HBG Incinerator finances. Agenda: http://bit.ly/QFIKwh

START 10:10AM

Tweet Stream from PA Senate Local Government Committee Hearing

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