The City of Pittsburgh issues debt to fund capital needs and economic improvement projects and refinance existing debt. The City makes targeted capital investments to support economic growth, strengthen communities, and improve the quality of life in Pittsburgh. These investments include funding for the public infrastructure to support private development and job growth as well as local infrastructure improvements and protection of the City’s natural resources. These capital investments are planned and funded through the capital budget. Most of the capital budget is funded by the issuance of bonds. The City’s authority to issue debt comes from the City’s Home Rule Charter. All debt shall be issued in accordance with all applicable federal, state, and city requirements governing the issuance of public debt.
The City of Pittsburgh has issued and currently makes debt service payments on General Obligation bonds or GO bonds. These are bonds that are backed by the full faith and credit of the City of Pittsburgh, which has the power to tax residents to pay bondholders. As such, the City uses a portion of its property tax revenues to repay the General Obligation Bonds in the form of annual principal and interest payments. The City of Pittsburgh makes principal and interest payments on the outstanding debt obligations on a semi- annual basis in March and September of each fiscal year. As of April 2018, the City of Pittsburgh had a total of $382,610,000 in outstanding debt obligations (principal only). The General Obligations Bonds have a fixed coupon rate ranging between 2% to 6.6% throughout the bonds life span. Below is a summary of the overall debt outstanding per bond issued.
City of Pittsburgh, Overall Summary of Debt Outstanding As of April 1, 2018
|General Obligation Bonds - Series 2017||$54,635,000||$28,183,000||$82,818,000|
|General Obligation Bonds- Series 2014 Tax Exempt Bonds- Refunding||$39,740,000||$993,500||$40,733,500|
|General Obligation Bonds- Series 2014 Tax Exempt Bonds - Capital||$44,460,000||$18,205,450||$62,665,450|
|General Obligation Bonds- Series 2012A Debt Service Outstanding||$29,815,000||$5,709,508||$35,524,508|
|General Obligation Bonds- Series 2012B Debt Service Outstanding||$71,275,000||$28,534,875||$99,809,875|
|General Obligation Bonds- Series 1998C Debt Service Outstanding||$142,685,000||$34,771,110||$177,456,110|