HAZLETON -- Hazleton is now a financially distressed city. Mayor Jeff Cusat filed for Act 47 last month, and the state will now help the city manage money.
"It means the state is going to bring in firms that will come in and evaluate the city's finances and the policies the city has and make recommendations on how we can improve ourselves," Cusat said.
Now the city will be eligible for a $850,000, no-interest loan from the state. The mayor said that money will go toward bettering the city.
"They'll get a more efficient police department, fire department, (department of public works) and city hall employees," Cusat said.
The Act 47 status will last five years but can be renewed once it ends for another three. Scranton is another city in our area that has been declared financially distressed. It has held that status for the last 25 years, which has included significant tax increases for citizens. Mayor Cusat said the loan will help the city make its budget for this year.
Scranton is another city in our area that has been declared financially distressed. It has held that status for the last 25 years, which has included significant tax increases for citizens. Mayor Cusat said the loan will help the city make its budget for this year.
Cusat said the loan will help the city make its budget for this year.
"It will benefit them in the long run. There may be a tax increase, or a fee if that's instituted, or an asset may be suggested to be sold off," Cusat said.
Many people who live in Hazleton are thankful for the loan.
"They don't really have the money to run the city, other than that, I don't know what to say," Dawn Gerlich of Hazleton said. "I just hope they work it out."
While others said they are worried this will end up costing them more money out of their own pockets.
"The government takes over the city's budget and hopefully it doesn't raise the taxes in the city," Paul Stulb of Berwick said.