The 194-page plan is now up on the receiver's website. The three primary challenges to be addressed include the incinerator debt of more than $317 million, the city's structural deficit and city management, Unkovic said.

Unkovic said he is prepared to complete negotiations on city asset deals, but the actual value first must be determined through a request for proposals process.

The incinerator and the city's parking facilities are the primary assets on the table, although the Harrisburg Authority also is directed to undertake an RFP process for management and operation of the water and wastewater assets, Unkovic said.

Any net benefits from the water and sewer assets, including increasing operating revenues, would be used to improve those systems and to contribute over time to address a portion of the city's structural deficit, he said.

Upon completion of negotiations, the recovery plan will be amended, he said. The receiver desires to have a consensual plan outside of bankruptcy but is prepared to file for Chapter 9 protection if an agreement cannot be reached, he said.

The goal is to determine the value of the assets by April and close on asset transactions by June, according to the plan.

On the structural deficit side, the plan states that with no changes for the next five years the estimated deficit for 2012 will come in at about $5.8 million, including a $2.8 million deficit carried over from 2011. In 2013, the deficit would be $3.8 million, Unkovic said. The remaining years would be as follows: $6.3 million in 2014, $8.1 million in 2015 and $9.9 million in 2016.

The receiver and the city are actively involved in negotiations with all three city unions, Unkovic said.

"As with the incinerator debt, the solution to the structural deficit will take additional time to determine," he said.

However, without additional new revenue sources, the city cannot achieve a balanced operating budget, even with further belt-tightening and meaningful concessions from the unions, Unkovic said.

"In the long run, the city must focus on its core services and have other services handled through intergovernmental cooperation or third-party arrangements," he said.

Closing the deficit gap requires a combination of concessions from the unions, an increase in the resident earned income tax, service efficiencies and additional revenues from fees and outside sources, he added.

The court must conduct a hearing on the recovery plan within 30 days of receipt and act on the confirmation of the plan within 60 days of receipt, according to the recently amended Act 47 law.

Click here to read Unkovic's plan.

Editor's note: This item was modified from its previous version to eliminate redundancies.