State officials have approved Allentown’s controversial bond refinancing, and the city says it will sell the new bonds within two weeks, preventing a tax hike or layoffs.

Dennis Yablonsky, secretary of the Department of Community and Economic Development, ruled Thursday the city has justified the refinancing bonds, which are expected to cost taxpayers about $48 million more in interest over 30 years.

City officials say the refinancing will reduce short-term debt payments that would be impossible to make without raising taxes or laying off employees.

The state had held up the transaction while reviewing appeals from two City Council members and three residents.

They alleged there was a lack of an opportunity for citizens to review the plan before it was passed, and a lack of financial documentation supporting the plan.

Yablonsky dismissed most of the appeals Nov. 16. He gave final approval Thursday.
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