City of Erie officials vetting financial impact of $96.7 million water lease deal

Written by on November 20, 2020

The deal has been touted as a multimillion-dollar sport changer for the financially challenged metropolis of Erie, one that provides Mayor Joe Schember’s administration the power to stabilize the town’s funds. 

It delivered an almost $100 million lump-sum fee to metropolis coffers.

And the settlement components closely into the town of Erie’s $97.7 million general fund budget proposal for 2021. 

However the just lately accomplished lease prepayment deal between the town and Erie Water Works has introduced one thing else to the fiscal dialog at Metropolis Corridor – issues about investments, rates of interest and doable monetary penalties, in addition to a pledge from some members of Erie Metropolis Council to proceed with warning.

The Erie Water Works Wasielewski Water Treatment Plant in Millcreek Township is shown Wednesday.

Schember’s administration and Metropolis Council members, as a part of finances deliberations, are breaking down the main points of the prepayment deal and the way it will issue into the town’s monetary framework shifting ahead. 

Town acquired the cash – $96.7 million – in October.

“We can not make rash selections right here,” council President Jim Winarski mentioned. “We have to take our time, do our homework and what we will legally do to get the perfect return for our funding.”

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