Philadelphia Takes Out $275M Loan
By Wyatt Earp | September 2, 2009
Are you friggin’ kidding me? The city is already well over $2 million in the hole, and now they are going to try and borrow their way to fiscal stability?
Is Mayor Squidward taking a page from Obamonomics?
Does anyone truly think that the Philly Democrats will spend this money in a responsible manner? Show of hands . . .
Philadelphia is taking out a short-term loan to help with cash flow as Pennsylvania’s budget crisis continues.
Mayor Michael Nutter announced Tuesday the city will take out the $275 million loan from JP Morgan Chase. The loan comes with a 3 percent interest rate if paid in full by November 30. On December 1, the interest rate increases to 8 percent.
Mayor Nutter expects the city will re-finance the loan at a lower interest rate in the public markets – once Pennsylvania’s budget crisis is solved.
Mayor Nutter also said Tuesday that by the end of next week, he will submit a new pension plan to the public agency that oversees the city’s pensions. Officials in Harrisburg are forcing the mayor to take that step.
Long story short: The city unions will get fisted in this new deal. Bank on it.
The city’s pension fund, however, is woefully underfunded. To pay all its obligations, the city should have about $8.4 billion in the fund. Right now, it only has about $4.6 billion – 55 percent of what is needed.
The unions place the blame for that squarely on city officials. (H/T – CBS3)
Absolutely correct. Previous administrations (*cough* Rendell and Street *cough*) took money from it like it was a giant ATM, and never worried about the little things . . . like paying it back.
Oh, and can you guess which party has been in uncontested power here for over 60 years? Take your time, it’s on the tip of your nose.
This city is fast becoming the new Detroit. Enjoy the ride.
Topics: Philly | 8 Comments »
September 2nd, 2009 at 8:52 am
I hope you guys are banking on something besides your pension to get you through retirement.
September 2nd, 2009 at 9:53 am
“Mayor Nutter expects the city will re-finance the loan at a lower interest rate in the public markets – once Pennsylvania’s budget crisis is solved.”
Translation: When the loan comes due, he’s going to roll the debt over onto his city-issued Visa card (with its low, low 18.9% APR).
Sounds like the math-impaired spandaholics running Philly are cut of the same cloth as the dim bilbs running the state of NY.
September 2nd, 2009 at 10:35 am
Randal – Two words: Deferred. Compensation.
John D – And every one of them will be re-elected in landslides, because most Philadelphia voters are too stupid to make up their own minds. They only vote who their Party/Union goons tell them to.
September 2nd, 2009 at 11:30 am
What’s even more unbelieveable is that Chase would consider Philly a good investment risk. What’s the collateral worth in a foreclosure?
September 2nd, 2009 at 12:53 pm
Have the city take over the Phillies then sell us back Cliff lee. With his 6 or 7 straight wins and a 0.68 ERA, last time I heard, you guys should be able to get a bundle.
September 2nd, 2009 at 9:26 pm
“Long story short: The city unions will get fisted in this new deal. Bank on it.”
But Wyatt, how can this be?
I keep reading that the unions are running the country now that The One (TM) is prez!
September 2nd, 2009 at 11:05 pm
I really dread moving to Pliladelphia.
September 3rd, 2009 at 2:59 pm
Mike47 – Maybe they can put up the stadiums we all paid for?
Jon – Good point, and we won’t have to worry about drunken, ignorant Phillies fans burning down the city.
JimmyB – Yeah, and look what a great job the unions did in Detroit!
Becky – You’re not coming here, are you? I’ll give you an armed escort in if you’d like.