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Harrisburg council asks state to de-obligate $11 million SRF loan for Westside trunk sewer extension

5673751 · August 21, 2025

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Summary

Citing shifting development patterns and debt concerns, the council authorized the mayor to request that DANR de-obligate an SRF loan of just over $11 million for a Westside trunk sewer extension project, saying taking on the debt would add roughly $21.76 per user per month.

The Harrisburg City Council authorized the mayor to request that the state department (DANR) de-obligate a 2023 State Revolving Fund (SRF) loan of slightly more than $11 million that had been awarded for a Westside trunk sewer extension project.

City staff described the project as important, but said current development patterns, existing infrastructure needs and the city—s debt obligations make taking on the $11 million loan impractical. Staff told the council that accepting the loan as originally structured would add about $21.76 per user per month to rates. The city previously took early action to pay off other SRF loans to reduce ratepayer burdens.

Staff said DANR has indicated no objection to the de-obligation request and that de-obligating the funds would not prevent the city from pursuing similar funding in the future. Council moved to authorize the mayor to request de-obligation and approved the motion by roll call.

Councilmembers said the decision is intended to shield ratepayers from increased monthly debt service and to better align capital projects with current development priorities and available resources.