Luzerne County Council mostly receptive of loan to Wilkes-Barre

Most Luzerne County Council members expressed support this week for a proposal to loan Wilkes-Barre $500,000 to help fund emergency city infrastructure repairs.

County Budget/Finance Division Head Mary Roselle told council during Tuesday’s work session that city Mayor George Brown asked the county for funding assistance to address two major sewage/stormwater repairs.

Instead of an outright allocation, the administration agreed to seek council approval to loan the city $500,000 in community development funds without charging interest and require the city to repay the county $8,333 per month over five years, Roselle said.

Roselle said the county has several miscellaneous community development accounts that can fund the loan and noted the county is unable to loan funds to cover both city projects.

Wilkes-Barre Administrator Charles McCormick said Wednesday that an estimated $1.2 million is needed for both projects, which he described as “major collapses.” The city is exploring other options to secure the remaining funding, he said.

The first collapse involves an antiquated corrugated metal culvert system that runs under Scott Street to Conyngham Avenue and channels stormwater from Wilkes-Barre Township, McCormick said.

This system failed twice during the last two years, including a major collapse several months ago, he said.

The second problem is a very large and deep combined sewer and stormwater line on Horton Street that services about half of the city, he said.

Made of terra cotta, this massive system has collapsed and required emergency intervention several times this year to date, McCormick said. In one incident, material backed up to South Main Street, he said.

Councilwoman Brittany Stephenson asked if the city will be required to provide collateral during the loan period, and Roselle said that must be determined.

Council Vice Chairman Brian Thornton said he does not believe the city would default on a loan because the impact on the city’s credit rating “would be disastrous.”

Councilman Harry Haas asked if the county has loaned funds to municipalities in the past, and his colleagues pointed to West Hazleton. Council voted at the end of 2023 to provide a $425,000 loan to the borough — using interest earned on county community development funds — so the borough could finish rehabilitating the Jaycee Drive Bridge to end detours through a residential neighborhood and concerns about delayed emergency response to 50 businesses.

Haas said he loves Wilkes-Barre and likes Mayor Brown and his work, but finds the loaning of funds to other municipalities “very quizzical” when the county has its own infrastructure problems to address.

County Chief Solicitor Harry W. Skene said the community development funds involved in the city loan cannot be used to fund county-owned road repairs.

Haas also questioned the lack of an interest charge on the city loan, saying, “I wish Harrisburg would give us some deal like this.”

Thornton said Wilkes-Barre is the county seat, and he believes the county has some obligation to help if it is able.

“It’s the right thing to do,” Thornton said.

Stephenson took issue with Haas’ position.

“I don’t think I’ve ever heard Luzerne County Council be so reluctant to help a municipality. I think that’s shocking,” she said.

Councilman Kevin Lescavage said he is in favor of the loan, even with no interest, because it “shows goodwill with the city.”

Lescavage said the city has been striving to make improvements.

“I think we have to give a helping hand to get this off the ground. Maybe this is the start of a good relationship, so I think we have to build from there,” he said.

Councilman Jimmy Sabatino said he would prefer a small interest payment on the city loan, but agrees with Lescavage.

“We do have a responsibility to the county seat, so I would support this too,” he said.

Councilman Greg Wolovich said the county should be “good neighbors.”

“Just because Harrisburg doesn’t do it for us doesn’t mean we can’t do it for others,” Wolovich said.

Councilwoman Joanna Bryn Smith said it appears the county would be helping the city avert an “awful” situation that would result if repairs are not completed.

During public comment, County Controller Walter Griffith cited past situations when he did not believe the city helped the county and argued interest should be required on the loan.

“That’s their problem,” he said of the infrastructure issues. “We have problems here. I don’t see the city coming to help us.”

Hazleton resident Mark Rabo said the county would “open up the floodgates” because other municipalities may expect loans.