Pennsylvania

Harrisburg might receive legal help from Pennsylvania as the capital city fights off a lawsuit that could force it to raise revenue to repay $282 million of outstanding incinerator debt.

Pennsylvania Wednesday announced that its cash-strapped capital city, Harrisburg, will be placed in its program for financially distressed municipalities. The city as a result will work with an outside financial adviser to craft a fiscal recovery plan.

With an eye on its credit ratings, the Delaware River Port Authority chose to keep in place a $1 toll hike Wednesday that was set to begin July 1 after weeks of debate on whether to delay the increase to 2012.

Pennsylvania on Wednesday will take bids on $650 million of general obligation debt, including $466 million of taxable Build America bonds.

Harrisburg Mayor Linda Thompson Wednesday proposed selling land underneath three parking garages to the Harrisburg Parking Authority to help fill a $4.3 million gap-error in her fiscal 2011 budget proposal.

Municipal enterprise projects that are struggling to meet operating and debt-service costs could be a default risk as cash-strapped states and cities become less likely to offer such entities direct aid, according to Moody's Investors Service.

Pennsylvania Treasurer Robert McCord Wednesday sent a letter to governor-elect Tom Corbett asking for his input on a stalled $1 billion new-money debt issuance that includes Build America Bonds.

Financial analysts Wednesday warned the Delaware River Port Authority that delaying a planned July 1 toll increase could result in rating downgrades of the bi-state agency, which could then prompt a payment of about $220 million on two of the agency’s swaps.

Moody’s Investors Service Tuesday revised Pittsburgh’s outlook to negative from stable as Pennsylvania’s second-largest city may face large pension contribution increases if its retirement fund falls under state oversight.

The Pennsylvania Higher Education Assistance Agency disclosed Friday that it is complying with an additional information request from the Internal Revenue Service as part of the IRS’ ongoing review of the agency’s student-loan bonds.

Pennsylvania’s final 2010 bond deal, a $1 billion new-money transaction that includes taxable Build America Bonds, is on hold as elected officials seek additional information before approving the borrowing.

Philadelphia plans to sell $275 million of debt in early December, including $69 million of taxable Build America Bonds, following a Moody’s Investors Service downgrade to A2 from A1.

Pittsburgh City Council President Darlene Harris Tuesday introduced a resolution that would direct additional parking-fee revenue into the city’s pension fund to help boost its funding level and ward off a potential state takeover.

Pennsylvania’s General Assembly passed a pension bill Monday to help the state lower retirement contribution costs that otherwise would increase by more than $2 billion in fiscal 2013.

New York City-based law firm Cravath, Swaine and Moore LLP will advise Harrisburg’s City Council on its options for either filing for bankruptcy or entering into Pennsylvania’s distressed communities program, called Act. 47.

Harrisburg last week made a debt-service payment of $305,952 due Nov. 15 on Harrisburg Redevelopment Authority bonds that the city guarantees.

A plan to enter Pittsburgh's parking facilities into a long-term lease agreement with a private operator came back to life Thursday after a City Council member moved to revise the deal.

Dauphin County, Pa., Commissioners Wednesday approved a contingent $34.7 million loan from PNC Bank to pay off Harrisburg Authority incinerator notes that will come due on Dec. 15.

A $220 million Pittsburgh Parking Authority borrowing plan hit a snag Thursday as the agency’s board voted against hiring bond professionals to help structure the debt sale.

Pittsburgh’s City Council Tuesday approved a $220 million Pittsburgh Parking Authority bond deal that aims to prevent a state takeover of the city’s pension system.