A state takeover is a certainty for debt-ridden Harrisburg as negotiations with creditors broke down this morning and tonight's consent agreement meeting, during which city officials had to develop a fiscal plan to give to the state to avoid the takeover, has been canceled.



Mayor Linda Thompson, creditors and the state met at 10 a.m. to continue negotiations, but only three of four City Council members needed to devise an agreement showed up for the meeting, council President Gloria Martin-Roberts said in a news release.

It has been determined that negotiations could not continue and a consent agreement could not be reached, Martin-Roberts said.

The negotiation process is closed, she said.



Council blames Mayor Linda Thompson and creditor AGM for breakdown that will lead to state takeover

Per the state takeover law adopted last month, Gov. Tom Corbett now will have the right to petition the Commonwealth Court to appoint a receiver to takeover the city's finances and implement a fiscal plan designed to pay down Harrisburg's $310 million of incinerator debt and balance its budget.



A takeover of sorts already has begun: The state Department of Community and Economic Development issued an Emergency Action Plan for the city Nov. 4 to ensure that vital services, such as police and fire protection, are not hampered as the city struggles to adopt a fiscal-recovery plan. That plan controls the city purse strings.

City Council filed for bankruptcy protection last month but Mayor Linda Thompson and state officials contend the council lacked authority to make the filing. A judge has scheduled a hearing on the dispute for next week.