PITTSBURGH, PA (September 22, 2015) Mayor William Peduto submitted the City’s $517.5 million 2016 Operating Budget to the Intergovernmental Cooperation Authority today, as well as its 2016 Capital Budget and 2016-2020 Five-Year Financial Plan.
The budgets and five-year plan seek to increase funding for police vehicles by one-third; allocate more than $24 million to street resurfacing and facility improvements; expand online permitting; and through 2020 earmark an additional $150 million to the City’s pension fund beyond its minimum municipal obligation. It includes no tax increases.
“This budget further cements the fiscally responsible and transparent budget practices I introduced last year, and provides city residents with the resources they expect while also keeping us on track to achieve the objectives of the Act 47 Recovery Plan,” Mayor Peduto said. “The truth in budgeting model we instituted last year is working, and making lasting changes for the benefit of taxpayers, workers and our bottom line.”
In the spirit of continuing to make the City’s finances and budgeting transparent to the residents it serves, the Mayor asked the ICA board to conduct its budget reviews and deliberation in the most public manner possible. He requested that the ICA:
A copy of the Mayor’s transmittal letter is here. The ICA has 30 days to review the proposed budgets and five-year plan. The administration will formally submit the budgets to Pittsburgh City Council in November.
An overview of the 2016 Operating and Capital Budgets by Office of Management and Budget Director Sam Ashbaugh is here. The Director breaks the budgets into five key elements that are designed to:
Reinforce the City’s commitment to achieving the primary objectives of the Act 47 Recovery Plan, through efforts including: gradually reducing the City’s debt burden to provide more resources to support daily operations; gradually increasing the City’s pension fund contributions to the levels recommended by its actuary; and directing more funding to the City’s capital budget, with the priority to invest more in the City’s roads, bridges, public safety facilities, and other core infrastructure.
Emphasize the Mayor’s priorities for enhancing the delivery of core municipal services, through efforts including: increasing funding for police vehicles by 33%, and investing in training and equipment to conduct data-driven policing; purchasing two EMS vehicles, 17 public works vehicles, and four refuse vehicles as part of our efforts to upgrade and modernize the City’s fleet; and maintaining the City’s increased investment in Learn & Earn Program through a $1 million allocation for summer youth employment.
Implement the Mayor’s vision for modernizing city government and implementing leading practices to provide taxpayers with an efficient, effective, transparent, and more accountable government, through efforts including: implementing the procurement transformation plan to align with leading practices; completing the reorganization of the Department of Permits, Licenses & Inspections and expanding the department’s online presence for transactions; and successfully completing the transition to the JD Edwards Workforce Management System and focus on opportunities for continuous improvement.
Allocate $70.2 million in 2016 funding for capital projects and continue the Mayor’s commitment to developing a long-term maintenance and investment plan for the City’s assets, through efforts including: $14.7 million for street resurfacing, providing for approximately 60 miles to be completed, which is the most in Pittsburgh this millennium; $9.6 million for facility improvements, including critical public safety facilities, park reconstruction, play area improvements, swimming pool rehabilitation, and improvements to recreation and senior centers throughout our neighborhoods; $6.8 million to neighborhood and community development projects and $2 million in demolition funds to enhance quality of life and public safety.
Provide a fiscally responsible path to address legacy costs and improve the City’s long-term fiscal health, through efforts including: continued efforts to reorganize city government and improve the delivery of core services with only 3,093 General Fund positions, which is 69 fewer positions than the November 2014 Budget; allocating an additional $150 million to the pension fund over five years beyond the state mandated minimum municipal obligation (MMO); and reducing the City’s debt burden from 17.1% of general fund expenditures in 2016 to 8.8% in 2020.
Tuesday, September 22, 2015
City of Pittsburgh
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