News organizations protest exclusion from Philadelphia bond meeting

Several news organizations led by Bloomberg News are protesting the exclusion of the news media from a two-day conference sponsored by the Nutter administration to stimulate investor interest in the city's municipal bonds.

The Inquirer has joined the protest, signing a letter to Nutter that criticizes the city for refusing to let reporters attend the conference, scheduled to begin Thursday at the Comcast Center.

"In our view, when the City of Philadelphia speaks to investors about the issuance of public bonds and the city's fiscal condition, that's important public business," Inquirer editor William K. Marimow said.

The Associated Press and the Reporters Committee for Freedom of the Press also signed the letter to Nutter.

"Your decision to have this discussion hidden from public view perpetuates distrust and cynicism among not only voters and the taxpaying public, but distrust of the City of Philadelphia by investors in infrastructure, bonds and other aspects of public finance," said the letter, drafted by Charles J. Glasser Jr., global media counsel for Bloomberg News.

Mayor Nutter's finance director, Rob Dubow, said the meeting was set up for institutional investors in municipal debt and investment professionals in related fields. More than 100 have registered to attend – more than the allotted space permits, he said.

"It's an informational session where the city will be talking about its assets and its fiscal condition," Dubow said. "It's really a look-see to show potential investors that we are a good investment. . . . It was never intended to be a public meeting."

Asked what might be said that would be inappropriate for the public to hear, Dubow declined to speculate, saying there wasn't enough space for reporters anyway.

The city's biggest financial problems are already well-known: unsettled contracts with three of the four municipal unions, a $5 billion unfunded liability in the city's pension fund, an ongoing debate over whether to sell the Philadelphia Gas Works, and massive deficits at the Philadelphia School District.

The state's public meeting law requires government agencies to discuss and vote on most issues at public sessions. But it generally doesn't apply to meetings between public officials and private citizens.

There is no mention of the School District in the agenda for the upcoming investor conference, posted on the city treasurer's website at http://www.phila.gov/investor/ .

The agenda promises welcoming comments by Comcast's executive vice president, David L. Cohen, followed by an overview of the city and regional economy moderated by Alan Greenberger, city director of commerce and deputy mayor for economic development. Panelists will include Chamber of Commerce chairman Daniel K. Fitzpatrick, president and chief executive officer of Citizen's Bank; Paul R. Levy, president of the Center City District; Bob Moul, chief executive officer of Artisan Mobile Inc. and president of Philly Startup Leaders; and economist Ryan Sweet, Philadelphia regional expert for Moody's Analytics.

Dubow will lead a one-hour discussion of the city's general obligation credit, along with city treasurer Nancy Winkler and city budget director Rebecca Rhynhart.

Steve Tang, president and chief executive officer of the University City Science Center, will lead a one-hour panel on the role of health care and higher education in Philadelphia's economy, including panelists Craig R. Carnaroli, executive vice president of the University of Pennsylvania; Drexel University president John Fry; Kirk Gorman, chief financial officer of Jefferson Health System; and Neil Theobald, president of Temple University.

Nutter is scheduled to speak during lunch, followed by afternoon presentations from three city-related borrowers: the Water Department, Philadelphia International Airport, and the Philadelphia Gas Works.

There will be a two-hour cocktail reception Thursday evening, and the Friday schedule is devoted to tours of the city, Water Department facilities, the city-owned airport, and the Gas Works.

Sam Katz, the former municipal finance adviser who now chairs PICA, the state board overseeing city finances, said investor conferences were typically designed to permit candid conversation between debt issuers such as the city and the investors who hold the city's bonds.

"You want the investors to feel they can ask anything they want, and if you're the finance director, you want to be able to respond honestly. . . . You might want to say something to them that you don't want to say publicly," Katz said.

He added, however, that the powerful lineup of non-city officials made Thursday's program interesting for the public.

"Frankly," Katz said, "the city should televise it. . . . They're going to talk about where the city's headed. Apart from credit issues, where the city's headed is very much the public's business."

Cohen said he was more familiar with investor conferences at corporations, sometimes open to the media but generally not.

"You want to provide an environment where investors feel free to ask whatever questions they want," he said. "It's not that you're disclosing anything proprietary or confidential. It's more a matter of style in providing a level of comfort for the investors."