Pennsylvania

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.

Pennsylvania’s last-minute plan to help its capital city meet a $3.3 million general obligation payment to bondholders last week is a “credit positive,” but Harrisburg needs “external support” to achieve long-term fiscal stability, according to Moody’s Investors Service.

As litigation began Monday against the city of Harrisburg and the Harrisburg Authority, other Pennsylvania municipal governments are facing similar fiscal woes — rising labor costs and sluggish revenue streams.

The Pittsburgh and ­Allegheny County Sports and Exhibition Authority Tuesday will sell $150 million of tax-exempt revenue bonds to refinance debt and generate savings.

Harrisburg and Pennsylvania officials are working on securing a potential bank loan so the city can meet a $3.3 million debt-service payment due Sept. 15 and avoid a default.

Moody’s Investors Service late Tuesday upgraded to A1 from A2 the Southeastern Pennsylvania Transportation Authority, affecting $327 million of debt. The outlook is stable.

Harrisburg’s debt woes are exacerbated by the political impasse between Mayor Linda Thompson and the City Council, which could hinder its ability to utilize the capital market in the future, according to a Moody’s Investors Service analysis of Pennsylvania’s capital city.

Fitch Ratings last week upgraded the Southeastern Pennsylvania Transportation Authority to AA from A-plus, affecting $327 million of outstanding debt.

Dauphin County Wednesday authorized TD Bank to pursue legal action against Harrisburg, as Pennsylvania’s capital city said it will not meet payments due Dec. 15 on $35 million of incinerator bonds.

Both Democratic and Republican lawmakers in Pennsylvania agree that the state needs a long-term transportation funding strategy, but have yet to find consensus on how the state should pay for roads, bridges, and public transit.

Rebecca Rhynhart will leave her current position as Philadelphia’s treasurer and replace former budget director Stephen Agostini beginning Nov. 1.