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WILKES-BARRE — The state awarded the city another $200,000 grant to continue its efforts to stabilize its finances through the Early Intervention Program.
The grant from the state Department of Community and Economic Development was announced Friday by state legislators and Mayor Tony George.
The mayor thanked state Sen. John Yudichak, state Rep. Eddie Day Pashinski and Gov. Tom Wolf for their assistance with the grant.
“This grant is essential in restoring Wilkes-Barre’s financial health and to secure the city’s long-term growth,” George said in a press release.
In June George asked the state for an Act 47 declaration as a last resort to deal with the city’s financial struggles. Act 47 would have allowed the city to triple the emergency services tax to $156 a year, attempt to impose a commuter tax and provide access to a $3 million loan that was interest-free for 10 years.
But Yudichak and Pashinski opposed the declaration and DCED denied it, telling the city to exhaust all options including continuation of the EIP.
To date a total of $275,000 in state grants and city funds have paid for the services of consultant the PFM Group during the first two phases of the program. PFM coordinated a bond deal to restructure the city’s long-term debt payments in order to improve cash flow and pay for a portion of the Solomon Wall reconstruction project.
The latest grant would pay for a third phase of the EIP and require the city to contribute a 10-percent match or $20,000. Funding for the next phase will pay for a qualified consultant to complete a “Comprehensive Economic Development Strategic 5 Year Plan” and the purchase of financial software, according to the press release.
“I will continue to work with Mayor Tony George, City Council and Representative Pashinski in advancing initiatives that will revitalize Wilkes-Barre,” Yudichak, D-Plymouth Township said in the release.
Pashinski added, “Any support is appreciated as we continue to move forward toward the goals of the city’s multi-year financial plan.”