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Council discusses $500,000 zero‑interest loan to Wilkes‑Barre for sewer emergency; details, collateral still pending
Summary
County staff outlined a proposed five‑year, zero‑interest $500,000 loan to the City of Wilkes‑Barre to repair an emergency sewer collapse; councilers asked for collateral and indicated mixed views while some supported the county helping the county seat.
Luzerne County officials discussed a proposal to loan $500,000 from a miscellaneous/community development account (including UDAG interest) to the City of Wilkes‑Barre for an emergency sewer repair.
Mary Roselle, a county official, told council the city requested funding to address a collapsed sewer line at Cunningham and Pennsylvania avenues and that county staff proposed a five‑year, zero‑interest loan with monthly payments of $8,008.33. Roselle said the administration would select the cash account earning the least interest for the loan disbursement.
Council members pressed for collateral and cautioned about precedent. Councilman Lescavage and Councilman Sabatino voiced support, noting the county seat’s importance; others asked whether alternative financing — including state PennVest loans or other state programs — would be more appropriate. Public commenters and outside stakeholders urged fiscal prudence and warned that similar requests could follow from other municipalities.
Staff said the county has made similar municipal loans recently and would negotiate collateral terms, but no formal vote was recorded in the work session discussion. Council directed staff to refine loan terms, clarify the precise funding source within miscellaneous accounts, and return with a formal resolution and recommended collateral or repayment guarantees for a future voting session.
