News Column

United States : PITTSBURGH to consider a $50 million bond issue to address infrastructure needs

July 17, 2014

Pittsburgh City Council will begin consideration of a $50 million bond issue intended to address the backlog of infrastructure needs identified in a report by the city s financial overseers under Act 47.

The mayor ?s office introduced a bond package, capped at $152.1 million, included $50 million in new borrowing and $70 million in refinancing of old city bonds. Mayor Bill Peduto announced that he was pulling that ordinance and pushing forward with the $50 million bond issue on its own.

In order to ensure passage through the Pennsylvania Department of Community and Economic Development approval process, it is essential that we approve the issue as quickly as possible.

The administration has made the change at this morning s council meeting but wanted to give the council as much notice as possible.

Pittsburgh s Act 47 recovery plan had recommended the city issue $50 million in general obligation bonds in 2015 and 2017 to help address the needs for road and bridge repair, building rehabilitation and other critical investments.

Without borrowing there would be no way to pay for the city ?s mounting backlog of road, bridge and other projects.

Two dozen of the city ?s 86 bridges are deficient. 56% of its roads are rated the worst rating, and 75% are in very poor condition. The city spent an average of $3 million a year for the past 7 years to care for its 187 buildings, including police stations and fire stations.

The money would be used for those types of long-term investments in equipment and infrastructure.

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Source: TendersInfo (India)

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