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Luzerne County Council approves interest‑free UDAG loan to Wilkes‑Barre for sewer repairs despite public objections
Summary
Council voted unanimously to approve a loan from interest earned on the county’s UDAG fund to the City of Wilkes‑Barre for a sewer repair project. Public speakers urged caution, questioned city finances and argued the city can pursue state Penvest or CDBG funding instead.
Luzerne County Council voted to approve a loan from interest on the county’s UDAG fund to the City of Wilkes‑Barre for a sewer repair project, a measure that drew prolonged public comment and calls for greater financial transparency.
Why it matters: Council used interest on the county’s UDAG (Urban Development Action Grant) fund to support a municipal sewer repair project for the city that serves as the county seat. Several residents and municipal stakeholders urged council to scrutinize the city’s finances, to consider alternative emergency loan programs and to require stronger documentation of the city’s fiscal need before disbursing county funds.
During the public comment period multiple speakers told council they opposed the loan. Mark Raybo and Sam Troy urged councilors to “scrutinize the city's finances” and to consider alternatives such as Penvest — a Pennsylvania Infrastructure Investment Authority loan program — noting statewide emergency loan options and CDBG funding may be available. Troy said, “I urge the County Council to put this at least on the back burner, to table it, and look more closely at the City's finances.”
Other speakers argued Wilkes‑Barre has previously received substantial county support and questioned whether county taxpayers should subsidize the city again. One speaker noted a recent local example of an extended, slow Penvest process and said that program can take months to arrange. Council members and staff debated those feasibility concerns during the meeting.
Despite the objections, Council reopened the question to allow fuller debate and ultimately approved the loan by unanimous roll call. During the discussion council members said they had considered the timing and practical need for sewer repairs and that the UDAG interest fund offered a way to provide prompt assistance. Several council members said they were prepared to set a precedent for municipal loans when projects are urgent and alternative funding is too slow or inaccessible.
The loan will be recorded as an interest‑free UDAG loan to the City of Wilkes‑Barre for a specified sewer repair project. Council did not specify loan repayment terms in the meeting record; the administration will finalize loan documentation and any required covenants and reporting details before disbursement. Council members asked the administration to provide follow‑up documents showing loan terms, the city's proposed repayment plan and any collateral or security for the county’s funds.
The motion to approve the loan passed on roll call. Council directed staff to finalize the loan paperwork and report back with the agreed terms and conditions.
