Mayor Luke Ravenstahl announced today that the Pittsburgh Parking Authority (PPA) is soliciting proposals from qualified consultants in determining the best way to proceed with the possible monetization of its parking assets.
The Mayor last month called on the Authority to look into the revenue that could be generated through monetization. Such revenue, the Mayor explained, would be infused into the City's 36 percent funded pension system.
"We've done everything we can to right the pension ship, but right now bold ideas are needed to ensure that future liabilities don't take away from critical public safety and core services down the road," Ravenstahl said. "This process will ultimately tell us if monetizing these assets makes the best sense for the residents of our City."
The Mayor last December increased the City's minimum municipal obligation to the pension fund and adopted a defined-contribution plan for non-union employees - both first time actions. In addition, last November, the Pennsylvania League of Cities and Municipalities approved the Mayor's Four Point Plan for Pension Reform, which calls for statewide changes to the pension funding system, among others.
"Even with the Mayor's bold moves, our pension consultants stated that an infusion of cash is needed to stabilize the fund," said City Finance Director Scott Kunka. "Since then, we've been looking very seriously and critically at ways to generate money for a pension cash infusion."
Other cities have successfully monetized public infrastructure assets. The City of Chicago generated more than $500 million from the lease of its parking garages.
The request for proposal (RFP) is available on the City's and PPA's websites and due Mar. 20.
Friday, February 20, 2009
More Pension Accomplishments articles
MAYOR CALLS ON RESIDENTS, BUSINESS OWNERS, COMMUNITY LEADERS TO ATTEND IMPORTANT PUBLIC MEETING
Oct 22, 2010
CITY RELEASES FINAL PARKING PROPOSAL
Aug 11, 2010
MAYOR TO HOLD PUBLIC MEETINGS ON PENSION PLAN
Jul 08, 2010
Office of Mayor Luke Ravenstahl
512 City County Building | 414 Grant Street
Pittsburgh, PA 15219
telephone: 412-255-2626 | facsimile: 412-255-2687