Pennsylvania

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.

Pittsburgh’s City Council gave preliminary approval Wednesday to a $220 million borrowing plan for the Pittsburgh Parking Authority that would help keep the city’s pension system out of state control.

Harrisburg could gain $60 million by the end of the year as the Harrisburg Parking Authority in December plans to restructure all of its $105 million of outstanding debt and pass new-money proceeds to the city.

Pittsburgh will not receive $451.6 million in a 50-year parking-lease agreement with a private operator, as its City Council Tuesday rejected the plan.

The Pittsburgh City Council is poised next week to reject a $451.6 million offer for its parking system that would, if completed, raise revenue needed to ward off a state takeover of the city’s pension system, which is only 30% funded.

The Harrisburg Authority is unable to end three derivatives with Royal Bank of Canada and use those termination funds to help meet a Dec. 1 payment to bondholders of its incinerator debt, according to board member William Cluck.

Moody’s Investors Service placed under review for possible downgrade Monday a combined $86.4 million of Harrisburg Authority water bonds and Harrisburg Parking Authority revenue bonds because the city could enter Pennsylvania’s distressed communities program.

As Harrisburg looks for assistance through Pennsylvania’s distressed communities program, the city also will seek a $7 million short-term loan to help meet payroll and other immediate costs.

Political fighting in Harrisburg, Pa., scrapped Mayor Linda Thompson’s initiative to restructure debt of the region’s incinerator authority, meaning the city is no closer to resolving the problems that brought it to the verge of a general obligation default this month.

Pittsburgh could follow in Chicago’s footsteps and lease its parking spaces and city-owned garages to a private operator.

Pennsylvania is gearing up to issue at least $2 billion of general obligation debt via competitive bid before the end of the calendar year as officials keep a wary eye on the possible expiration of the Build America Bond program.