Philadelphia Mayor Jim Kenney's administration wants to use sugary-drink tax revenue to back $300 million for city parks, recreation centers, playgrounds and libraries.
A request for three $100 million bond authorizations for the infrastructure enhancements under a "Rebuild" program was sent to the Philadelphia City Council Thursday in conjunction with Kenney's proposed $4.4 billion fiscal 2018 budget. Kenney said the bonds would not be issued until litigation over the city's new beverage tax is fully resolved. The Democratic mayor plans to allocate revenue from the tax on surgery drinks that took effect Jan. 1 for debt service on the bonds.
Kenney said the Philadelphia Authority for Industrial Development would issue the bonds. The city would then enter into leases with the authority for parks, recreation centers and libraries identified as Rebuild sites and then sublease the sites to a small number of "project users" that wish to construct the improvements. The Kenney administration plans to use a competitive request for qualifications process if the ordinances are approved.
"I'm glad to present these bills to advance Rebuild, as the urgency of needs for our parks, recreation centers and libraries increases," said Kenney in a statement. "These ordinances are a result of a partnership with City Council and a shared commitment to making our city's public spaces better for all Philadelphians and reaching our goals for diversity and economic opportunity."
Kenney delivered a budget address Thursday where he also outlined a five-year fiscal plan that involves increasing annual roadway resurfacing by more than 75% by 2023. His proposed capital program also dedicates $90 million over the next six years toward a new park that cover a portion of Interstate 95.
Kenney's $4.4 billion budget proposal would increase expenditures to the city's pension fund by 4.5% to $29.3 million. He also proposes increasing debt service by 2.19% to $157 million.
Philadelphia general obligation bonds are rated A2 by Moody's Investors Service and A-minus by S&P Global Ratings and Fitch Ratings. Pennsylvania's largest city had $1.5 billion in outstanding GO debt in late 2016, according to Moody's.
