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<p>HAZLETON &#8212; Council members approved a 10-year, no-interest loan for $850,000 from the state Department of Community and Economic Development in a 4-1 vote Tuesday. The move comes after Hazleton was granted Act 47 financially distressed status by the state.</p><p>Mayor Jeff Cusat applied for Act 47 status and also has been a strong proponent for the loan. &#8220;They&#8217;re offering this money at 0 percent,&#8221; he said.</p><p>Cusat has stated in the past that the loan is needed for emergency funding so the city can meet its financial obligations for the rest of the year.</p><p>Council members initially voiced opposition to accepting the loan, pointing out it has to be paid back by city residents.</p><p>&#8220;We&#8217;re fighting for your money,&#8221; Councilman David Sosar said as he addressed the public. &#8220;We&#8217;re fighting for the taxes you guys have to pay.&#8221;</p><p>Sosar voted in favor of the loan, but reluctantly.</p><p>&#8220;I believe there is misspending,&#8221; he said, directing his comments at Cusat. &#8220;You&#8217;ve put a gun to our heads.&#8221;</p><p>Sosar said council is left in a situation where there is currently no other option.</p><p>Marita Kelly, deputy director for DCED, assured council there will be a full accounting of how the loan money is spent and there will be opportunities for the city&#8217;s administration to provide input.</p><p>&#8220;I think we all understand that we don&#8217;t want to see the workers of Hazleton be without a paycheck. I think that&#8217;s what it comes down to,&#8221; Council President Jack Mundie said before the vote was taken. &#8220;People of the city work hard and I think we&#8217;re doing this for them.&#8221;</p><p>As part of the Act 47 process, the state will now be sending out a Request for Proposals seeking companies interested in performing a financial evaluation of the city. The company that&#8217;s eventually hired will help Hazleton shape a financial blueprint for the future.</p><p>Other Luzerne County municipalities have utilized Act 47 benefits to get their finances in order, including Plymouth Township, Nanticoke and West Hazleton.</p><style>
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<div class="neCaption">Cusat</div></div><div class="metaInfo"><photo0>https://www.timesleader.com/wp-content/uploads/2017/09/web1_Cusat_Jeff_toned-2.jpg</photo0><caption0>Cusat</caption0><photoCredit0></photoCredit0></div></div>
<div class="metaInfo"><subheadMeta>Cash infusion part of Act 47 process</subheadMeta></div><div class="metaInfo"><bylineMeta><p>By Kulsoom Khan</p><p>Times Leader</p></bylineMeta></div>

At mayor’s urging, Hazleton council approves $850K state loan