Tuesday, July 15, 2008
The city of Pittsburgh is planning on refinancing it's debt. The city's next debt payment is due September 1st. The city wants to refinance before September 1st because the current interest rate will result in 3 million dollars in savings. The city is hiring Fairmount Capital Advisers to guide it through the process. There is a point of contention with the choice of Fairmount. The Intergovernmental Cooperation Authority which oversees the city's financial progress was sued by Fairmount after the ICA's current Executive Director left Fairmount and reportedly took some of the company's business with him. The city's finance director says he doesn't believe the ICA has the authority to tell the city who it can and can not hire in this case. If the city does not refinance its debt by September 1st then the interest rate could end up being higher than it currently is and would result in less savings for the city.