Dauphin county commissioners meeting agenda for Wednesday July 29, 2015. Hotel tax grants

Dauphin county commissioners approved the following grants.

A 20 second vote with no description or discussion.

R. Tourism Grants (2%):

1. American Lung Association of the Mid-Atlantic - $2,000

2. CREDC - $7,500

3. CD East Panther Basketball Camp - $2,500

4. Communities in Schools PA - $10,000

5. Gamut Theatre Group, Inc. - $10,000

6. Halifax Fire Department - $5,000

7. Harrisburg Area YMCA-East Shore Branch - $10,000

8. Harrisburg Beer Week - $2,000

9. Hershey Centrals - $2,500

10. Hershey Figure Skating Club - $5,000

11. Hershey Symphony Orchestra - $10,000

12. Lighten Up Harrisburg - $2,500

13. Linglestown 250 Committee - $5,000

14. Middletown Area Historical Society - $2,000

15. The Technology Council of Central PA - $10,000

2% Total grants $86,000

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S. Tourism Grants (1%):

1. Cyrene Lodge #169 - $18,000

2. Capitol Area Forerunners - $13,555.44

3. Dauphin County Parks & Recreation - $30,000

4. Harrisburg Area Riverboat Society (Friends of City Island) - $10,700.68

5. Hershey/Harrisburg Regional Visitors Bureau - $39,000

6. Londonderry Township - $20,000

7. Open Stage of Harrisburg - $15,000

8. Senators Partners LLC aka Harrisburg Senators Baseball Club - $40,000

9. Susquehanna Art Museum - $15,000

1% Total grants 201,256,12

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Total grant amount awarded $287,256.12

Photo/Natalie Cake file.

Updated at 12:58pm to include video.

Page 24 of the Grand Jury report.

The Grand Jury was able to review a letter dated August 5, 2004 from James Losty the managing director at RBC Dain Rauscher to Reed wherein Losty indicated that Act 72 was adpopted in Pennsylvania and was to go into effect as of September 3, 2004. The Act was going to require school districts to go to referendum for approval of municipal bond offerings. Losty indicated that he had been in talks with Public Financial Management and Bill Gretton regarding the possibility of negating this requirement by entering into a bond purchase at the time for future delivery of bonds. Losty wrote that such a transaction wouldn't require any up front fees but would allow for "future flexibility with regard to the timing of the actual delivery of bonds and the structure of bonds". He ended his letter by noting that the school district had roughly $25 million of borrowing capacity remaining. This Grand Jury finds Reed enthusiastically agreed and encumbered the school district with the maximum possible debt and gave Losty the business in return. Reed also set aside $5 million from the $25 million to be used for capitol and operating costs at the Harrisburg University of Science and Technology, indicating that this was "a critical component of this bond transaction". Dr. Kohn testified that he was not aware of this transaction until the day of his Grand Jury testimony.

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Archive video of James Losty.

On November 13, 2012, the PA Senate Local Government Committee held its second public hearing examining the massive debt of the Harrisburg Incinerator. James Losty of Royal Bank of Canada Capital Markets, underwriter for the 2003 Incinerator retrofit bonds, testified during the proceedings.

Videos:

Part I: The egregious errors of the Harrisburg Incinerator Forensic Audit Report

Part II: "Clearly the original financing of the 2003 retrofit project was not a contributor to the problems that exist today."

Part III: No conflict of interest

Part IV: "It actually coincides perfectly."

Part V: "The strength is the guarantors."

Part VI: "I'm not someone to shy from giving my opinion."

Part VII: "Very plain vanilla SWAPs."

Photo/Dani Fresh file 2012.

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March 30, 2009.

Harrisburg School District Business Administrator Jeff Bader during a March 30th 2009 Board of Control meeting, Bader explains how the Series 1999, 2003, and 2006 bond and related SWAPs began to spiral out of control driving the variable interest rates from an original 3.5% to as much as 24% interest, Bader goes on to say that if left as is the school district debt service will increase an additional $25 million for the following year.

Currently our intrest rates on some of these bonds rates now go anywhere from 15 to upwards of maybe 24 percent.

Jim Losty of RBC Capital presents a plan to "fix" two financial problems created by the Reed controlled Boards and Authorities in Harrisburg, Losty recommends terminating SWAPs and variable rate investments vehicles and entering into fixed rates indentures.

Jim Losty RBC Capital.

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On March 28, 2012 Harrisburg Receiver David Unkovic held a press conference in his Office of the Receiver and read a letter asking US Attorney Peter Smith and PA Attorney General Linda Kelly to investigate "possible illegal activities" related to the Harrisburg Incinerator financings. During the presser, Unkovic referred to Jim Losty of RBC.

This is video from 2007 of Jim Losty testifying before Dauphin County Commissioners on the "background on the County-guaranteed debt." Losty proceeds to give an explanation using such terms as "SWAPs," "interest rate exposure," and "hedged." He also refers to the "monitoring" and "suggestions" his company had made to the Harrisburg Authority, going so far as to say, "the Authority was given the idea" of how to proceed. In his opening statements after being given the mic from Attorney Andrew Giorgionne, Losty introduces himself as an underwriter and SWAP provider of previous County financings.--Tara Leo Auchey

Jim Losty.

Off market SWAPs.

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On March 28, 2012 Harrisburg Receiver David Unkovic held a press conference to read a letter asking US Attorney Peter Smith and PA Attorney General Linda Kelly to investigate "possible illegal activities" related to the Harrisburg Incinerator financings. During the presser, Unkovic referred to Jim Losty of RBC. This is video of Jim Losty testifying before Harrisburg City Council on June 30, 2008. Discussing the lease of Harrisburg Parking System to Jacob Frydman, Losty gives a general synopsis of the work he has done for Mayor Reed since 1983. He says he has done at least 50 transactions for the City and says the Reed Administration was always open to "creative financing and refinancing opportunities." It was because of that openness that Losty states he approached Reed in October/November 2006 to suggest the leasing of the City's assets in order to help confront Harrisburg's debt.--Tara Leo Auchey (Part 1 )

Jim Losty.

An open door policy opportunity for new creative financing.