City Council gives early approval to $80 million bond issue
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Despite continued budget wrangling with state-appointed overseers, Pittsburgh City Council today gave preliminary approval to an $80 million bond issue that would fuel capital spending for the next two years.
"This is probably one of the most important votes that council will make this year," President Darlene Harris said.
After five years of pay-as-you-go capital spending, Mayor Luke Ravenstahl has called for borrowing to provide added funds for street paving, neighborhood amenities and other projects over the next two years. He also proposed refinancing $57 million in old debt to save the city about $5 million.
The Intergovernmental Cooperation Authority, one of two state-appointed oversight boards, rescinded approval last month of the city's 2012 budget and later warned the city not to proceed with a borrowing until its concerns had been resolved.
The ICA said the city hadn't established a trust fund for retiree health benefits, inked an agreement for contributions from nonprofit groups or made improvements to the capital budget process.
ICA and Mr. Ravenstahl's office disagree on whether overseers have the power to block a bond issue.
City finance director Scott Kunka, however, took a conciliatory tone today, saying he expected resolution to the ICA's concerns before the end of the week.
First Published January 18, 2012 12:00 am
