Harrisburg council approves resolution to pay down utility debt, aims to cut surcharge

HARRISBURG — The Harrisburg City Council approved Resolution 2025-04 on April 1 authorizing repayment of two utility loans dating to 2019 and 2022, a move city officials and a financial adviser said will lower the water and sewer surcharge for customers.

Toby Morris, a consultant with Colliers, told the council the loans are not subject to a prepayment penalty after negotiations with the bank. Morris said the city planned to wire funds on April 11 to reduce outstanding debt by roughly $3 million. "That'll translate into about an overall 13% reduction of the surcharge," Morris said, adding the change should appear in customer bills within about 30 to 45 days and could affect May or June billing cycles.

Morris described the action as the first step in a longer review of utility surcharges. He said growth in the system has created cash surplus opportunities to prioritize direct debt reduction and that staff will continue analyzing rate-setting and forecast models into late summer and fall.

Mayor and council members voted to adopt the resolution during the meeting. Staff said the finance team would coordinate wiring instructions with the bank and implement the payoff.

Why it matters: Paying down debt reduces the interest burden carried by the utility enterprise and can lower the surcharge portion of customer bills; the council-approved payoff is expected to result in an immediate, measurable reduction in charges to utility customers when processed through billing cycles.

What’s next: City staff and consultants will monitor system growth and surcharge projections and report back with further recommendations for rate adjustments or additional debt-reduction steps later in the year.