Title
Authorizing and approving (i) the execution and delivery of a Service Agreement between the City of Philadelphia and the Philadelphia Authority for Industrial Development relating to the financing of the repayment of a certain deferred funding obligation, (ii) the issuance by the Philadelphia Authority for Industrial Development of bonds, notes or other evidences of indebtedness in one or more series, to finance repayment of such deferred funding obligation; and (iii) the obligation of the City of Philadelphia to pay in full when due the Service Fee and other amounts payable under the Service Agreement; authorizing certain City officers to take certain actions required to issue bonds, notes or other evidences of indebtedness; covenanting that the City of Philadelphia will make necessary appropriations in each of the City's fiscal years to provide for the Service Fee and other amounts due under the Service Agreement; and covenanting that the City of Philadelphia will make timely payments of the Service Fee and other amounts due under the Service Agreement; all under certain terms and conditions.
Body
WHEREAS, The City of Philadelphia (the "City"), pursuant to 53 P.S. § 895.1002, deferred a portion of its minimum municipal funding obligation (the "Deferred Funding Obligation") to its pension system in the amount of $230,000,000; and
WHEREAS, 53 P.S. § 895.1002 requires the City to repay a portion of the Deferred Funding Obligation by June 30, 2013, and the remainder of the Deferred Funding Obligation by June 30, 2014, with the outstanding balance of the Deferred Funding Obligation to bear interest at 8.25% until repaid; and
WHEREAS, The City's budget for the current fiscal year includes payment of interest on the Deferred Funding Obligation and repayment of a portion of the Deferred Funding Obligation; and
WHEREAS, The City may repay the Deferred Funding Obligation at any time, and at current interest rates, the City will achieve interest s...
Click here for full text