Mayor Luke Ravenstahl today announced that he will be holding three City-wide public meetings to talk with citizens about his plan to solve the City’s pension crisis by monetizing the City’s parking assets.

The Mayor last month released the draft concessionaire agreement for the proposed monetization of the parking assets. The Mayor proposed this plan more than a year ago in order to prevent the state from taking over the City’s pension assets. The takeover would force the City to pay roughly 30 million more annually in pension payments. At the request of the Mayor, the state has granted the City until Jan. 1, 2011 to get its pension above half-funded in order to avoid the takeover.

“The reality is, we’re in a tough situation right now,” Ravenstahl said. “If we do not take the steps to get our pension above half-funded we are looking at a bleak situation for our residents – drastic cuts in services or tax increases.”

The City’s pension fund contains only $293 million or 30 percent of its $697 million liability. The City must put more than $200 million into the fund to get it above half-funded.

During the meetings, the Mayor will give a presentation to citizens on the steps the City has taken to improve its financial situation, including the adoption of a pay-as-you-go capital budget, a no new debt policy and measures to get the City’s inherited “legacy” costs of pension, debt and healthcare under control. After, the Mayor will go into detail about the ramifications of a state takeover of the City’s pension assets.

The Mayor will explain why much debate and analysis have concluded that parking monetization is the best option. Lastly, and most importantly, the Mayor will go into detail on how the proposed monetization would affect the availability and cost of parking in Pittsburgh.

“I look forward to addressing citizens’ concerns and answering any questions they may have about this plan,” Ravenstahl said. “I assure residents that throughout this process we have been open and transparent and addressed any anticipated concerns the public may have through the Parking Advisory Committee.”

Members of the Mayor’s Parking Advisory Committee comprised of neighborhood stakeholders, business owners and elected officials adopted guiding principals which ensure that the interests of businesses and the public are represented. All guiding principals – including retention of public ownership, ensuring a gradual increase in parking rates not to go above market rate and encouraging more public parking within neighborhood business districts – have been represented in the draft concessionaire agreement. Many committee members will be in attendance.

Locations:

Wednesday, July 14^th – 6-8:30 p.m.

Northside Senior Center Allegheny Square

5 Allegheny Square (lower level of the old Carnegie Library)

Wednesday, July 21^st – 6-8:30 p.m.

St. Mark’s Evangelical Lutheran Church

933 Brookline Blvd.

Wednesday, July 28^th – 6-8:30 p.m.

Greenfield Senior Center

745 Greenfield Avenue