Kansas City Does First Deal With All-Minority, Women and Disadvantaged Firms

CHICAGO — Kansas City, Mo., will enter the market on Tuesday with a $43 million new-money and refunding general obligation deal that includes $10 million of recovery zone economic development bonds, and which will be the city’s first negotiated sale to use only certified minority, women, and disadvantaged underwriting firms.

Houston Metro to Sell $2.6B for Light Rail, More Than Voters OK’d

DALLAS — Houston’s Metropolitan Transit Authority said it plans to issue $2.6 billion of bonds to finance five new light-rail lines, even though voters only authorized a quarter of that amount.

WTC Site Talks Continue as Deadline Looms

Negotiations to end a dispute over development at the World Trade Center site in Lower Manhattan continued Thursday ahead of an arbitration deadline today. In January, an arbitration panel gave developer Silverstein Properties Inc. and the Port Authority of New York and New Jersey 45 days to reach an agreement on how to proceed with the construction of three towers.

Trend in the Region

Wall and Main Streets Talk Past Each Other

SAN FRANCISCO — Two groups gathered in the San Francisco Bay Area this week to discuss municipal bonds, public budgets and interest rate swaps. [FREE]

Detroit Deal Nabs Decent Rates With State Back-Up

CHICAGO — With a pledge by Michigan backing up the debt, below-investment-grade Detroit yesterday captured interest rates ranging from 2.47% to 5.375% on $250 million of distributable state aid limited-tax general obligation bonds.

Governor Sings Swan Song, Signs Budget

Wyoming Gov. Dave Freudenthal signed the state’s two-year budget bill Friday, one day after announcing he will not run for a third term.

And the Winner Is ...

The California Public Securities Association has given its annual Award of Excellence in Public Finance to Bob Leland, finance director of Fairfield, the trade group announced.

Stanford Readies $300M

Stanford University is preparing to issue up to $300 million of new tax-exempt debt this month, said treasurer Odile Disch-Bhadkamkar.

A Mess of Solid-Waste Upgrades

Standard & Poor’s Thursday announced upgrades for 11 different California solid-waste systems.

Revenue Outperforms Again

California revenue for February came in ahead of projections for the third month in a row, Controller John Chiang announced Wednesday.

Ravitch Has Budget Strategy

Overseers Could Block N.Y. Debt

A financial oversight board would have the power to effectively prevent New York from issuing state-backed debt if the state’s budget isn’t balanced, under a plan proposed yesterday by Lieut. Gov. Richard Ravitch. [FREE]

Deal in Focus

Florida’s CPIC Readies Up to $2.4B

BRADENTON, Fla. — With the 2010 hurricane season set to begin June 1, Florida’s Citizens Property Insurance Corp. is preparing to price between $2 billion and $2.4 billion of debt to raise ready cash in case it is needed to pay claims for storm-related damages.

Illinois’ Quinn Floats $52 Billion Budget

CHICAGO — Facing a $13 billion deficit, Illinois Gov. Pat Quinn yesterday unveiled a $52 billion fiscal 2011 budget that cuts spending by $2.4 billion, relies on $4.7 billion in deficit borrowing, and leaves nearly $6 billion in bills unpaid.

Moody’s Drops Cleveland Debt, Adds Negative Outlook

CHICAGO — Moody’s Investors Service yesterday downgraded and assigned a negative outlook to all of Cleveland’s outstanding debt, warning that a weak economy continues to pressure the city’s fiscal position.

MoDOT Backs Up Due to Federal Funding Failure

Congressional foot-dragging on federal transportation policy reverberated again at the state level this week, as the Missouri Department of Transportation decided not to put projects out for bids, making March the second consecutive month the state canceled bids due to federal funding uncertainty.

Indianapolis Mayor Aims to Privatize Water-Sewer System

CHICAGO — Indianapolis Mayor Greg Ballard yesterday announced that, pending approval by the city and Indiana, the city would sell its water and sewer systems to a nonprofit group for $425 million and the assumption of $1.5 billion in outstanding debt.

Harrisburg Budget Lacks Debt Service

Harrisburg, Pa., will operate under a budget that does not include payments for debt service on outstanding incinerator bonds after the City Council Tuesday evening declined to override Mayor Linda Thompson’s budget veto.

Oklahoma Revenue Rebounds, Beats Expectations

DALLAS — Oklahoma tax revenue in February exceeded the official forecast for the first time since December 2008, with better-than-expected collections from personal income and energy production taxes.

District That Issued for Vegas Resort Draws on Reserves

SAN FRANCISCO — One of the Nevada local improvement districts that sold land-secured bonds to finance infrastructure at the troubled Lake Las Vegas development made an unscheduled draw on its reserve fund to pay debt service this month, according to a disclosure report filed with the Municipal Securities Rulemaking Board.

Dallas Weighs Tapping Tollway Bond Funds for Levee Repairs

DALLAS — After years of battling opposition to a $1.8 billion toll road proposal on the Trinity River near downtown, ­Dallas is facing another financial challenge to the star-crossed project.

Langford Lawyers File Notice With Court of Appeals

BRADENTON, Fla. — Attorneys for Larry Langford Tuesday filed a notice with the 11th U.S. Circuit Court of Appeals in Atlanta stating they intend to appeal his conviction.

Chesapeake Hospital Rises

The Chesapeake Regional Medical Center this week was upgraded to A2 from A3 by Moody’s Investors Service based on its consistently strong balance sheet. The action affects $39.4 million of fixed-rate debt issued in 2004.

Cabinet OKs $500M Deal

Miami Amidst Fiscal Mess

Miami on Monday fired budget director Michael Boudreaux amid continuing questions about the city’s deficit and the budgets’s structural balance.

Moody’s Affirms State

Moody’s Investors Service on Monday affirmed its Aa2 rating on Alabama’s $664 million of outstanding general obligation bonds and the Aa3 rating on another $171 million of debt that is subject to appropriations. The outlook is stable.

It’s One Big Recovery Zone

With a tight deadline ahead, the Jefferson County Commission Tuesday voted to declare the entire county a recovery zone to qualify for the issuance of recovery zone bonds under the federal stimulus program.

(As of Dec. 22, 2009)

Ratings for U.S. States

Quinn Budget for Illinois to Include $4.7B of Strategic Borrowing

CHICAGO — Illinois Gov. Pat Quinn Wednesday will unveil a proposed fiscal 2011 budget that cuts spending and calls for new deficit borrowing to help trim a $13 billion deficit, but a gaping hole will remain unless lawmakers approve revenue increases, Quinn aides said Tuesday.

Rum-Tax Revenue Amendment Dropped From Tax-Extender Bill

Lawmakers yesterday removed an amendment from the federal tax-extender bill that would have changed the way the federal government allocates rum-tax revenue to Puerto Rico and the U.S. Virgin Islands.

SEC Takes No Action on Florida Pool

BRADENTON, Fla. — The Securities and Exchange Commission sent the Florida State Board of Administration a one-paragraph letter last week stating that the agency will not recommend enforcement action regarding the meltdown of what was one of the largest local government investment pools in the country.

Deal in Focus

Illinois Financings Advance

Range From Arts To Assisted Living

CHICAGO — The Illinois Finance Authority yesterday advanced more than $800 million of new-money and refunding debt planned by various organizations, including the Art Institute of Chicago, the Alexian Brothers Health System, and Palos Community Hospital. [FREE]

Indiana Governor Ready To Sign Toll, Bridge P3 Bill

CHICAGO — Indiana would be allowed to privatize two of the state’s largest proposed infrastructure projects under a measure on its way to Republican Gov. Mitch Daniels’ desk.

Texas Official Says Two-Year ­Budget Gap Is At Least $11B

DALLAS — Texas lawmakers will be facing a revenue shortfall of at least $11 billion when they develop the next two-year budget in 2011.

N.Y. Comptroller Urges Amendment on Voter-Approved Debt

New York Comptroller Thomas ­DiNapoli yesterday called for a constitutional amendment to require most state-backed debt be approved by voters and issued by his office.

Connecticut Gov. Rell Seeks $227M To Build New Health Care Facilities

Connecticut Gov. M. Jodi Rell yesterday proposed the construction of a new hospital and health care facilities that would use $227 million of state general obligation bonds and other funding sources.

Multnomah County Chairman Named Oregon Treasurer

SAN FRANCISCO — Oregon Gov. Ted Kulongoski yesterday appointed Multnomah County chairman Ted Wheeler to be state treasurer.

California OKs Gas Tax-Swap Bill, But Governor’s Nod Not a Given

SAN FRANCISCO — California’s sales tax on gasoline is dead. But long live higher excise taxes on gasoline.

Cooperative in Cleveland

In his fifth annual state of the city address, Cleveland Mayor Frank Jackson touted several large development projects planned for downtown and said he would push Ohio to allow more cooperation among municipalities looking to partner on services and education.

Revenue Underwhelms

Missouri has collected 12.7% less in revenue than originally expected so far this fiscal year, officials said last week.

S&P’s Slew of Upgrades

Standard & Poor’s raised 59 school districts and municipalities in Illinois, Indiana, Kentucky, Michigan, Minnesota, Missouri, Nebraska, and Ohio.

Power Play in Pontiac

The mayor of Pontiac, which is in its second year of state-controlled emergency financial management, said he might file a lawsuit challenging the authority of the city’s new financial manager, according to the Detroit Free Press.

Detroit: Light Rail at Last?

Detroit could break ground on the first phase of a long-planned light-rail project along one of its main thoroughfares by the end of the year, Mayor Dave Bing said last week.

The Fall of Libertyville

Moody’s Investors Service dropped Libertyville’s general obligation rating two notches to Aa3 and affirmed its negative outlook due to a deteriorated fiscal position.

Brady Wins GOP Slot

The Illinois Board of Elections formally named state Sen. Bill Brady, R-Bloomington, the victor of last month’s Republican primary for governor. Brady will face incumbent Gov. Pat Quinn in the November general election.

Chicago-Area Pension Plan Ratios Get Worse

CHICAGO — The funded ratios of 10 Chicago-area government pension plans further deteriorated in fiscal 2008, driving their unfunded liabilities up to $18.5 billion from $3.4 billion a decade earlier as steep investment losses exacerbated the already poor position of most of the funds, according to a new report from a local watchdog group.

Detroit Plans Deficit-Easing Debt

$250M Deal With State-Aid Backing

CHICAGO — Detroit will enter the market Thursday with $250 million of state aid limited-tax general obligation bonds that the city will use to erase a chunk of its accumulated deficit. [FREE]

Moody’s Lowers Dallas’ Outlook to Negative

DALLAS — Moody’s Investors Service has shifted its outlook on Dallas’ Aa1 rating to negative based on the city’s weakening economy and narrowing budget reserves, the agency said.

San Antonio Utility Sets $380M BAB Deal

DALLAS — CPS Energy of San Antonio tomorrow will price up to $380 million of Build America Bonds for capital projects, including a new coal plant that is nearing completion.

N.Y. Gov. Paterson Awaits Briefing On Ravitch Deficit-Borrowing Plan

New York Gov. David Paterson has long railed against deficit borrowing to help the state out of its fiscal mess, but such a plan could be under discussion, the governor said yesterday.

Deal in Focus

Two Arizona Universities Offering Bonds for Hard Times

DALLAS — With higher education at the center of Arizona’s debate over how to revive its struggling economy, two of its major state universities will issue $237 million of revenue bonds to upgrade their flagship campuses.

Three ISDs Plan GO Votes

A number of school districts are looking for approval of general obligation bond packages at the May 8 election.

School Eyes $35M Stadium

Trustees of the Galveston Independent School District last week set an election for May 8 on $35 million of general obligation bonds to build a new football stadium on the island.

Tulsa Plans for Rainy Day

The Tulsa City Council is considering a rainy-day fund that would bank revenue generated during good economic times to avoid budget cuts during lean periods.

Roadwork Grinds to a Halt

Kansas Gov. Mark Parkinson last week ordered an immediate halt to all new state road maintenance projects as part of his plan to avoid a $106 million revenue shortfall in fiscal 2010.

Revenue Keeps Dipping

Arkansas general fund revenue in February was $365 million, almost $7 million less than expected and $31 million less than in February 2009. The drop is the 12th time in the last 15 months that revenue fell below the same month of the previous year.

Phoenix Cuts, Lays Off

The Phoenix City Council approved a budget-balancing plan for fiscal 2011 that calls for $64 million in reduced spending and the elimination of 520 city positions. The budget reductions take effect April 5 and last through June 2011.

Trend in the Region

Pittsburgh Planning $2B Project

Allegheny County officials are working on a $2 billion initiative to expand public transportation between downtown Pittsburgh and its Oakland neighborhood — the city’s academic and cultural hub — and to boost mass transit within Oakland itself.

N.Y. IDAs Up In Arms Over Assessments

Assessments levied on New York’s industrial development agencies have economic development officials and some lawmakers up in arms. Bills due at the end of March began going out to the state’s 116 IDAs last month. The assessments were included in the state’s fiscal 2010 budget and were intended to raise $5 million for the general fund.

Harrisburg Mayor Vetoes Budget Over Lack of Debt Service

Harrisburg Mayor Linda Thompson Friday vetoed the Pennsylvania capital city’s $65 million fiscal 2010 budget because it doesn’t include current-year debt service obligations to bondholders on $282 million of outstanding incinerator debt.

Ascension Set to Sell $670M

Deal Is First Part Of $1.34B Issuance

CHICAGO — St. Louis-based Ascension Health on Wednesday launches the first piece of its $1.34 billion new-money and restructuring deal that will raise funds for projects across its network, while also allowing the system to further reduce risk exposure and lower its maximum annual debt service. [FREE]

Michigan Makes 10 Issuers Into One

CHICAGO — Michigan would abolish its 10 bond-issuing authorities and consolidate them into the newly created Michigan Finance Authority under an executive order issued by Gov. Jennifer Granholm last week.

Langford Gets 15 Years for JeffCo Scheme

ORLANDO, Fla. — Alabama federal Judge Scott Coogler Friday sentenced former Jefferson County Commission president Larry Langford to 15 years in federal prison for his role in a long-running play-to-play scheme centering around the county’s now-failed $3.2 billion of sewer warrants and swaps.

More U.S. Funding on Track for Florida Fast Rail

ORLANDO, Fla. — Two members of Florida’s congressional delegation Friday said more federal funding is on the way for high-speed rail for the state and other areas of the country.

Moody’s Negative On Cincinnati Due To Income Tax Decline

CHICAGO — Moody’s Investors Service Friday revised its outlook to negative from stable on Cincinnati’s general obligation debt as the city faces declining income tax revenue, which makes up nearly two-thirds of its general fund.

SEC, First Allied Reach $1.95M Settlement for Supervisory Failures

The Securities and Exchange Commission announced Friday that it has reached a $1.95 million settlement with First Allied Securities Inc. for failing to supervise one of its former brokers who engaged in unauthorized, fraudulent trading in the accounts of two Florida municipalities.

Authority Czar Tapped

New York Gov. David Paterson last week appointed David Kidera as acting director of the Independent Authorities Budget Office, which was created by the Public Authorities Act of 2009.

NJSEA Faces State Audit

After holding a public hearing, New Jersey Sen. Barbara Buono last week asked the state auditor to examine operations of the New Jersey Sports and Exposition Authority. Buono, D-Middlesex, chairs the Senate Legislative Oversight Committee, which held the hearing.

Audit Finds Agency Waste

The South Jersey Transportation ­Authority wasted thousands of dollars due to mismanagement and lack of oversight, according to an audit released last week by the state’s office of inspector general.

NJ Transit Boosts Fares

New Jersey Transit last week announced plans to raise rail and bus fares 25% to generate $140 million of new revenue and help plug a $300 million gap.

Rell Offers Plan to Close Hole

Connecticut Gov. M. Jodi Rell last week proposed a mix of cuts, fund transfers and deferred payments to close a $503.9 million current year budget deficit. The largest revenue measure proposed was the acceleration of a $219.2 million transfer from budget reserves that had been slated for fiscal 2011.

D.C. Sets $696M Refunding to Stay Under Its Debt Cap

D.C. Sets $696M Refunding to Stay Under Its Debt Cap

D.C. Sets $696M Refunding to Stay Under Its Debt Cap

California Ready for Its Return to GOs

California Ready for Its Return to GOs

California Ready for Its Return to GOs

Treasurer Seeks Re-Election

Kate Marshall wants another term as Nevada Treasurer.

Arnold Scores Line-Item Win

California Gov. Arnold Schwarzenegger won a round this week in a legal dispute over his line-item veto authority.

Jerry Brown Makes It Official

Now California Democrats officially have a candidate for governor.

S.F. Controller: Rebuild Reserves

San Francisco Controller Ben Rosenfield proposed legislation Monday that would require the city to maintain a minimum general-fund balance and to create a new budget-stabilization reserve that would augment the city’s rainy-day fund.

L.A. Forecast: Beware Falling Revenue

Los Angeles Controller Wendy Greuel forecast Tuesday that the city’s general fund revenue will fall to $4.19 billion in the upcoming fiscal 2010-11 budget year.

U.S. Senator Weighs In On Spirited 'Rum War’

It’s far from closing time for the ongoing “rum war” between Puerto Rico and the U.S. Virgin Islands as a U.S. senator is seeking to distribute rum-tax revenue based on population rather than the amount of rum a territory produces, which is the current system.

UBS Adds $200 Million to ARS Settlement With Texas

DALLAS — UBS Securities will repurchase up to $200 million of auction-rate securities from investors across the country not covered in investment bank’s initial agreement with state and federal regulators, according to the Texas State Securities Board.

N.Y.C. Looking Nervously at State Budget

The recession has dealt New York City’s economy a better hand than expected, but city officials yesterday painted New York State’s budget problems as the wild card still in the deck.

Florida High-Speed Rail Shovel-Ready, But in Need of Full Funding

ORLANDO, Fla. — Florida will need full funding to build a high-speed rail network from Tampa to Orlando, and eventually on to Miami, Nazih Haddad, chief operating officer for the state’s new Florida Rail Enterprise program, said yesterday.

Deal in Focus

California Ready for Its Return to GOs

SAN FRANCISCO — After a legislative kerfuffle that caused a one-week delay, California is on track to return to the bond market next week with a $2 billion general obligation bond deal. [FREE]

D.C. Sets $696M Refunding to Stay Under Its Debt Cap

WASHINGTON — The District of Columbia on Tuesday expects to issue $711.2 million of income-tax secured revenue bonds, including $696 million of refunding bonds that will reduce outstanding debt to keep the city under its 12% debt-to-expenditures cap.

Massachusetts Aims to Issue $539M of SIFMA-Index GOs

Massachusetts will head to market in the next two weeks with $538.8 million of SIFMA-index general obligation debt that will refinance Series 2005A variable-rate bonds.

Dallas Council Boosts Refunding in $330M GO Sale

DALLAS — Dallas will take as much as $330 million of general obligation debt to market next week after the City Council voted Wednesday to increase the refunding component to a maximum of $170 million.

New Mexico Lawmakers OK $5.6B Budget With Near-Record Tax Hike

DALLAS — The New Mexico Legislature has approved a $5.6 billion budget in a special session that balances spending with the largest tax increase in more than 20 years while cutting spending by $100 million.

JeffCo Prosecutors Urge Minimum of 24 Years for Langford

BRADENTON, Fla. — Federal prosecutors in Alabama Wednesday recommended that former Jefferson County Commission president Larry Langford be sentenced to a minimum of 24 years and four months and a maximum of 30 years and five months in prison.

Trend in the Region

Florida Weighs Intercept Program

BRADENTON, Fla. — The Florida Legislature will consider implementing the state’s first-ever intercept program designed to provide credit enhancement for municipal bonds.

Massachusetts DOT Set to Refinance $2.27 Billion of Big-Dig Debt

The Massachusetts Department of Transportation plans to refinance by mid-April up to $2.27 billion of debt that helped fund Boston’s Central Artery Project, known as the Big Dig.

L.A. Schools to Mail 5,200 Layoff Notices

SAN FRANCISCO — The Los Angeles Unified School District Board of Education agreed Tuesday to send out 5,200 layoff notices in the face of a $640 million budget deficit projected for the next fiscal year.

Tulsa County ISD Voters Approve Record Deal

DALLAS — Voters in the Tulsa County Independent School District No. 1 approved a $354 million general obligation bond package on Tuesday, the largest bond package ever sought by the district or any other school district in Oklahoma.

Perry Wins Republican Nomination for Texas Governor

DALLAS — Anti-Washington fervor in Tuesday’s primary helped Texas Gov. Rick Perry win the GOP nomination to run for an unprecedented third term and set the stage for the once-powerful Republican Sen. Kay Bailey Hutchison to retire from politics.

Illinois Senate OK Bill Allowing Colleges to Sell Short-Term Debt

CHICAGO — With Illinois more than $700 million in arrears on aid it owes its public universities, the Senate approved a measure yesterday that would allow the universities to issue short-term debt to manage through the ongoing payment delays.

Cook County, Ill., Seeking Firms To Work on Upcoming GO Deals

CHICAGO — Underwriters, financial advisers, and bond counsel interested in working on upcoming general obligation issues for Cook County, Ill., have until tomorrow at 10 a.m. to submit their interest to the county.

Squeezed UNC Sets Deals

The University of North Carolina system expects to issue $151.4 million of pool revenue bonds for six state universities next week as the state’s difficult budget decisions may affect tuition rates.

Second Thoughts on Ballots

Commissioners in two Louisiana parishes voted this week to withdraw their approval of bond elections slated for May 1.

P3 Gets Off the Ground

The official groundbreaking took place last week in Broward County on the Interstate 595 Express Corridor Project, a nearly $2 billion public-private partnership with I-595 Express LLC, a subsidiary created by ACS Infrastructure Development.

Solid Waste Gets S&P Surge

Standard & Poor’s last week raised its rating on the Huntsville Solid Waste Disposal Authority’s solid-waste revenue bonds to AA-plus from AA.

Trend in the Region

Indianapolis Mayor Floats P3 Plan

Ballard Eyes Water, Sewer System Sales

CHICAGO — Faced with aging infrastructure and a pledge to not raise taxes, Indianapolis Mayor Greg Ballard wants to use public-private partnerships to raise new revenue that could fund water and sewer upgrades and other citywide projects. [FREE]