Council declines to introduce $3M reimbursement resolution tied to potential Fidelity Bank purchase

Scranton — A proposed resolution meant to prepare the city to reimburse capital expenditures with nontaxable debt — a step administration said would align borrowing with a prospective Fidelity Bank building purchase — failed to be introduced Tuesday after council debate.

The resolution (item 5f) would have authorized the city to reimburse itself “in the amount not to exceed $3,000,000 for expenditures paid by the city from its general fund in connection with capital projects to be completed during calendar year 2026” and to take actions necessary under section 1.15‑2 of the U.S. Treasury Regulations. Council discussion focused on whether the move was tied to a planned purchase of the Fidelity Bank building at 134–136 North Washington Avenue.

During public comment, Joan Maguona had questioned the need for a $3,000,000 non‑taxable debt to buy the Fidelity Bank building, asking whether the purchase would divert the public away from City Hall and whether the expense was justified. At the dais, councilors asked for clarification about the timing and relationship between lining up debt and approving a sales agreement.

Administration staff said the sales agreement and related purchase ordinance would appear on next week’s agenda; staff described the reimbursement resolution as a way to “get the loans in line” if the city proceeds with a purchase. After council debate, a motion to introduce item 5f failed on a voice vote.

The council did not adopt any borrowing authorization Tuesday; the clerk said the actual ordinance for the Fidelity purchase will be on next week’s agenda, and staff agreed to gather more information for council members.

What’s next: The purchase ordinance and sales agreement are expected at a future meeting; administration will provide additional details on financing and the timing of any debt issuance.