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Harrisburg Sets Sale of Incinerator That Drove Insolvency

Harrisburg left potholes unfilled and raised income taxes as it sank into debt from an incinerator that was supposed to reap millions. Now, residents of Pennsylvania’s capital are days away from shedding the facility that drove the city to insolvency.

The Lancaster County Solid Waste Management Authority said it would issue $132.3 million in tax-exempt revenue bonds as early as next week to finance its purchase of the incinerator, according to deal documents and William B. Lynch, the city’s state-appointed receiver. Proceeds would go toward creditors owed $362.5 million, or about seven times the city’s general-fund budget.