HARRISBURG - The state-appointed receiver overseeing Harrisburg's troubled finances says the city will meet its payroll obligations this month but could be out of money by November.

William Lynch said Tuesday the city is skipping a $3 million bond payment that will allow it to keep more cash on hand.

The Patriot-News of Harrisburg (http://bit.ly/QI2oHd ) reports Lynch said the cash-flow situation prompted "difficult decisions on which bills to pay."

Harrisburg has been laboring under a massive $300 million debt tied to an incinerator renovation project. Talks are under way to sell the incinerator to the Lancaster County Solid Waste Authority.

Lynch's office says the city's budget deficit is expected to peak at more than $11 million at the end of the year.