Sunday, September 09, 2007

Heard on the street....

I do feel awfully disconnected some days. I missed completely this story last week which unfortunately is not available publicly online. I suspect a few people may be interested in this:

Trends in the Region: Despite Expecting Budget Surplus, Pittsburgh Eyes an Uncertain Future By Jonna Stark in The Bond Buyer August 27, 2007.

I will note without further comment other than a bit of emphasis (in italics) added to these excerpts:
The city sold about $250 million of general obligation bonds in 2006, $200 million of which went to refinancing debt. This lowered the city’s debt service by $12 million annually, Shields said. The remaining $50 million was new money used for infrastructure improvements. Pittsburgh has $888 million of outstanding GO debt, Shields said

and

Pittsburgh must submit its 2008 budget and five-year budget to the ICA in mid-September. The authority will either then approve or reject the budgets, and if the budget is approved, it will go before the city council in November for approval.
and
“We know that in 2009, 2010, and 2011 we’ll probably — without adjustment to the plan — see some structural deficits,” Shields said. By 2010, the city projects a structural deficit of $6 million and a $16 million to $18 million deficit by 2011.
and if the actuarial reports didn't scare you away... Try reading the official statement of the 2006 bond refinancing which was referenced.

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