Allison BarnetteThe City of Pittsburgh has conducted its first competitive bond sale in decades, raising $62.6 million for the city to proceed with various infrastructure and community investment projects. The bonds were finalized in March for Fiscal Year 2025.
PNC Bank submitted the lowest True Interest Cost (TIC) bid at a rate of 4.04% for the 20-year bonds. The local financial institution’s offer to Pittsburgh reflects an investment in an economy that has been demonstrating potential for growth for well over a decade.
According to city reports, over 50,000 jobs added to Pittsburgh’s economy since 2010 have added revenue via earned income tax, which now surpasses the once dominant property tax. Home starts have increased 1709 percent in the same 15-year span. Post-pandemic, new home construction was up 405 percent from 2020 to 2023. The city’s permit office wrote $1.6 billion in commercial construction permits in 2024.
These encouraging numbers contribute to “stable” credit ratings for Pittsburgh- The Fitch rating went from ‘AA- ‘to ‘AA’ in 2024, while the S&P Global rating remained unchanged at ‘AA- ‘.
The total $62,610,911 will be used for city essentials, which include:
- Elevator replacements in the City-County Building
- Design work for Public Works’ Schenley Division
- Construction at fire stations, a recreation center and parks
Image by Bruce Emmerling from Pixabay
