Cities can lower borrowing costs by issuing tax-exempt bonds, but these come with restrictions that limit how funds can be used, particularly for projects that aren’t publicly owned. Taxable bonds offer greater flexibility for investments like affordable housing and neighborhood development, though they typically carry higher interest costs. Choosing between these financing tools requires balancing…

Philadelphia’s General Fund-supported debt declined by about nine percent over the past decade, even as the City continued to borrow for major investments in infrastructure, housing, and public facilities. This progress reflects consistent repayment of older obligations, including pension-related borrowing and legacy debts from prior fiscal challenges. Looking ahead, with annual debt service expected to…

Philadelphia’s credit ratings were reaffirmed at A1 by Moody’s and A+ by both S&P and Fitch—the highest the City has received in over 40 years, though still below most peer cities. Rating agencies highlighted strong reserves, declining debt, and the fiscal governance required under the PICA Act as key strengths, while noting long-term risks tied…

With legislation related to proposed H.O.M.E. Initiative borrowing set for introduction this week, it’s a good time for a refresher on how bond authorization works in the City of Philadelphia. When the City plans major long-term investments, it must obtain City Council authorization to borrow funds—though authorization does not automatically mean borrowing occurs immediately. Borrowing…

PICA’s Philadelphia Pension Fund Fact Sheet examines the City’s ongoing efforts to reduce its unfunded pension liability and stabilize pension costs. The report highlights that the City contributed nearly $833 million to the Pension Fund in FY24—four times the normal cost of benefits earned—while projecting the fund to reach 80% funding by FY29 and full funding by FY33.