The hard work of creating a Philadelphia Land Bank begins now. To get the land bank up and running quickly, the Philly Land Bank Alliance has called on the Nutter Administration as well as City Council to focus on three key steps:
- First, the Nutter Administration and City Council must appoint a permanent Board of Directors so they can immediately begin the work of overseeing the development of the new agency’s Strategic Plan, policies, and regulations.
- Next, the Council and the Mayor need to work together to ensure adequate funding for the Land Bank’s operations as part of the FY15 budget.
- Third, Council and the Administration must transfer all of the thousands of publicly-owned properties to the Land Bank. A key reform of the land bank ordinance is the consolidation of publicly-owned properties from the three agencies that currently hold them into one single entity.
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In December, we told you about a bill that will change the way water rates are set in Philly. After 2015, a board of political appointees will be tasked with setting rates. We agree with ex-Mayor John Street on this one. It's not a good idea.
We were especially concerned because last-minute amendments removed key minimum financial standards that had been negotiated by the Philadelphia Water Department, City Council, and stakeholder groups -- standards that would help guarantee that the department has rates set high enough to cover operating expenses and debt service.
We were especially concerned because last-minute amendments removed key minimum financial standards that had been negotiated by the Philadelphia Water Department, City Council, and stakeholder groups -- standards that would help guarantee that the department has rates set high enough to cover operating expenses and debt service.
In addition to harming the Water Department's ability to carry out its mission, we were concerned the lack of basic financial standards could damage the department's credit rating and cause concern among bond holders. Why is that important? When it costs more to borrow money, those costs are absorbed by water customers -- ultimately leading to higher rates across the board.
Welp, that didn't take long.
In an otherwise positive ratings outlook, credit rating agency Fitch cited recent Council amendments and "politicization of rate relief," saying that the changes made to the ordinance raise concerns and could lead to "negative rating action" -- meaning higher water rates.
While there was no credit downgrade, make no mistake, credit agencies will be watching closely.
This is a story we'll be following.
Andrew Sharp is PennFuture's director of outreach and is based in Philadelphia.
While there was no credit downgrade, make no mistake, credit agencies will be watching closely.
This is a story we'll be following.
Andrew Sharp is PennFuture's director of outreach and is based in Philadelphia.
