PHILADELPHIA -- Four Pennsylvania banks have rejected the city's request for credit guarantees as the city seeks to borrow between $375 million and $400 million to avoid running out of cash this month, according to the Philadelphia Inquirer and the Philadelphia Daily News.
Mayor W. Wilson Goode (D) and other top city officials have refused to comment on the notes since the mayor delivered a televised address on the city's finances last month. Goode has said the city will be out of money by the end of this month unless it receives a cash infusion. To raise cash, the city had intended to sell the notes, which were to be repaid from property and business tax receipts expected early next year.
Goode also has asked for an emergency tax increase of up to $150 million, the possible sale of Veterans Stadium and other steps to change a pattern of growing deficits in the city's budget.
Even with the temporary notes, the city projects a deficit of more than $206 million on this year's $2.1 billion budget.
The city's bond rating has been lowered to junk-bond status by Moody's Investors Service. Standard & Poor's Corp. has warned it is considering a similar rating.