Intergovernmental Cooperation ICA for Harrisburg (ICA) Transmits Annual Report 2025

FOR IMMEDIATE RELEASE

Contact: Jeffrey Stonehill, Authority Manager

Intergovernmental Cooperation Authority for Harrisburg

(717) 645-5431
hbgica@gmail.com
www.hbgica.org

Harrisburg, Pennsylvania – The Intergovernmental Cooperation Authority for Harrisburg (ICA) today transmitted its most recent annual report to Governor Josh Shapiro and the General Assembly on the fiscal progress for the City of Harrisburg over this past year. The ICA, an independent state agency created under Act 124 of 2018, is responsible for advising the City on matters of finance and management with the intent of resolving fiscal problems, eliminating deficits and regaining access to capital markets.

In the report, the ICA finds that the City of Harrisburg’s financial condition is currently stable, with progress toward many individual objectives. The report though continues to advocate for a more comprehensive approach to economic redevelopment as well as work toward reentering the credit marketplace.

The report finds that the administration of Mayor Wanda R.D. Williams is committed towards fiscal stability and renaissance and has restructured staffing around economic development, centered on commitments to bringing stakeholders together to develop a comprehensive strategy. The need for a truly comprehensive economic development plan is underscored by the continuing long-term impacts of COVID-19, specifically how State and corporate workforce telework policies have affected the vitality of the City downtown and neighborhoods. The related City fiscal impact was initially a precipitous decline in parking revenues but now after five years concern has shifted to reduced office occupancy and an accelerating series of real estate assessed value reductions.

In summary, there are three issues which the ICA Board of Directors notes in the report. First, the ICA encourages the City of Harrisburg to work with stakeholders – residents, businesses, developers, neighborhood groups – to adopt and implement a wide-ranging economic development strategy. Such a plan would help significantly with the City’s vitality and preventing future downturns in the local economy. In turn, that would help address the second concern, the lasting impact of remote work, the State workforce, vacancy rates for commercial real estate, and the related impacts on parking revenue, real estate tax valuations, and income from state worker taxes. Finally, the ICA is concerned about the maintenance of healthy fund balances in both the General Fund and the Neighborhood Services Fund of the City. Although the report acknowledges program and service contract improvements, the Neighborhood Services Fund is still affected by costs associated with intermunicipal sanitation contracts as well as under-collection of fees and long-term receivables. These three recurring issues were identified as concerns in last year’s annual report.

Harrisburg remains on the cusp of exit from Act 47 distressed city status. While its finances and financial structure are now sound and do qualify the City for exit, the procedure is impeded by long-standing litigation associated with the Harrisburg Incinerator, a matter the City needs to work through with the courts and the Pennsylvania Department of Community and Economic Development. It is the opinion of the ICA that should that litigation be resolved, the appointment of an Act 47 Coordinator and the processes established by Act 47 become redundant to the ICA process. The ICA is well equipped to work cooperatively with the City to ensure future fiscal planning to guarantee the City’s financial stability.

“The board members of the ICA remain committed to bringing their diverse backgrounds and experience to help the City promote growth and sustainability,” said ICA Board Chair Doug Hill. “Working together, we know that the possibility of prosperity lies ahead.”

The full report can be found at the ICA website, www.hbgica.org or by clicking on this direct link: https://hbgica.org/download/1445/

About the ICA:

The Intergovernmental Cooperation Authority for Harrisburg (ICA) is a public instrumentality of the Commonwealth of Pennsylvania. The ICA was created by an act of the General Assembly for the general purpose of fostering the fiscal integrity of the City of Harrisburg, pursuant to the Intergovernmental Cooperation Authorities Act for Cities of the Third Class (Act of October 24, 2018, P.L. 751, No. 124).

The ICA, composed of members experienced in finance and management, advises the City of Harrisburg, the General Assembly, and the Governor concerning solutions to fiscal problems the City of Harrisburg may face.

The powers and duties of the ICA are exercised by a governing board composed of five appointed members. The current four members are residents of the city and/or have their primary place of business or employment in the city. In addition, there are two ex officio, non-voting members of the board representing the City and the Commonwealth’s Secretary of the Budget.

The governing board of the ICA retains an Authority Manager and Independent General Counsel to assist them in their mission.

If you have any questions about the ICA, please contact Authority Manager Jeffrey Stonehill at hbgica@gmail.com.