Write a Local (Harrisburg) Problem and Policy Solution.

Name
Course
Instructor
Date
Local Problem and Solution
Problem
Since Harrisburg, Pennsylvania filed for bankruptcy, there has been increased scrutiny of the actions and efforts of the council to meet fiscal obligations because of high debt levels. Even though, Harrisburg has relied on municipal bond financing, there is a need to take into consideration project risks. The lack of thorough cost benefit analysis resulted in high cost overruns when Harrisburg sought to rebuild the city’s incinerator plant, which was the main cause of the bankruptcy crisis. Since Harrisburg has increasingly relied on landfills, the incinerator is losing money with little use to the community.
Bigger have also declared bankruptcy in the last five years, but the problem of high debts and insolvency have affected smaller cities even as this has not garnered national attention. Even as the market trends favor growth, there is concern that the city will face more financial difficulties, if it is still difficult to restructure some of the debt. Revenue generating activities are encouraged, but so are cost cutting measures to improve the city’ financial position.
Solution
The public should be allowed to decide on whether there is a need to continue supporting an incinerator that is bleeding money. Even after suffering huge losses the Harrisburg Authority decided to rebuild the plant, even as there was still outstanding debt more than $300 million (Gov rank.com). To further reduce the risk of losses, the project team management should be constituted to determine whether there is enough evidence that proposed projects will generate revenue. This was not the case when rebuilding the incinerator plant. Bonds are to be issue based on the assumption that there is revenue generation, and even after the plant was to be completed there is guarantee that it would generate revenue.
Project miscalculation has affected the financial status of City of Harrisburg, and by offering the project to less known contractor not been involved in such a project increased the construction risk. A review of further public works is an important step towards, and efforts to refinance them should be prioritized if the city is to meet financial obligations n the long-term failure to link. The city officials may make decisions without fully understanding how the financing structure influences investments in public works. Even though the assumption is that such projects will generate positive cash flows and returns on investments.
Audience
The proposed solution is targeted at the Harrisburg City Council officials and especially the mayor. The proposal is aimed at these officials as they identify policies and make decision that affect residents of Harrisburg City. Even though, it is five years since the city declared bankruptcy, the high debt levels have continually affected operations. As such, when the officials exercise more due diligen...