Mayor submits budget, five-year plan to ICA
September 26, 2017
Mayor William Peduto and the Office of Management and Budget have submitted a $555 million 2018 budget to the Intergovernmental Cooperation Authority, as well as the city’s updated five-year spending plan.
There are no tax increases in the 2018 operating budget. The budget will be subject to ICA review before it is submitted to Pittsburgh City Council on November 13. Council must finally approve a balanced budget by December 31.
“This budget and five-year plan highlights Mayor Peduto’s continued commitment to developing a long-term financial sustainability plan, improving the efficiency and effectiveness of government operations for the benefit of city residents and employees, and strengthening financial management practices,” the city’s chief financial officer Sam Ashbaugh said.
Total projected 2018 revenues are $560,676,492 and expenditures $554,765,921.
Budget highlights include:
Emphasizing the mayor’s priorities for enhancing the delivery of core municipal services and improving the quality of life throughout neighborhoods:
• Allocates funding for three police recruit classes and one firefighter recruit class.
• Includes funding for a citywide deployment of the ShotSpotter system.
• Maintains a commitment to increase funding for police vehicles to $1.6 million a year to improve the overall condition of the fleet.
• Allocates funding for additional inspectors in the Department of Permits, Licenses and Inspections to handle the increased permit workload.
• Maintains the city’s increased investment in Learn & Earn Program through a $1M allocation for summer youth employment.
Continues efforts to modernize city government and implement leading practices to provide taxpayers with an efficient, effective, transparent, and more accountable government:
• Allocates resources to support the build-out of the Department of Mobility & Infrastructure (DOMI) by realigning staff resources from the Departments of City Planning and Public Works, respectively.
• Establishes a Bureau of Facilities within the Department of Public Works to enhance facility operations and construction project management.
• Continues efforts to modernize the city’s licensing and inspection system.
• Invests in city employees through improvements to the city health and wellness program as well as employee training and development.
• Continues a multi-year effort to overhaul the city’s tax collection systems.
• Expands efforts to improve the efficiency and effectiveness of the city’s procurement function through improvements in policies, processes and technology.
The 2018-2023 Capital Improvement Plan includes $640 million in investment in capital projects over the next six years across all funding sources. The 2018 Capital Budget allocates $105 million for capital projects next year and continues a commitment to developing a long-term maintenance and investment plan for the city assets.
The 2018 Capital Budget:
• Increases funding eight percent over the 2017 Budget to allocate $16 million for street resurfacing, providing for an estimated 65 miles to be completed.
• Includes $2.25 million to support a multi-year plan to replace the existing security camera inventory and infrastructure and support a 30 percent expansion. • Includes $5 million for capital equipment acquisition for new vehicles and heavy equipment.
• Allocates $2.6 million for the Advanced Transportation and Congestion Management Technologies Development (ATCMTD), which leverages external funds to improve mobility and enhance safety for users of all transportation modes in our right of way.
• Increases funding for audible pedestrian and traffic signals by more than 100 percent.
• Provides funding for the multi-year Four Mile Run integrated stormwater management and connectivity plan for Four Mile Run and Schenley Park to the Monongahela River.
• Allocates $4 million for a multi-year reconstruction and repair of Smallman Street.
The budget provides a fiscally responsible path to address legacy costs and position the city for long-term financial stability:
• Allocates an additional $241 million to the pension fund over five years beyond the state mandated minimum municipal obligation (MMO).
• Reduces the city’s debt burden from 13.4 percent of general fund expenditures in 2018 to 10.4 percent in 2022.
• Continues to add $2.5 million in annual contributions to the other post-employment benefits (OPEB) trust fund.
• Maintains a minimum unassigned fund balance of 10 percent of general fund expenditures.
• Continues the city’s efforts to reduce overall worker’s compensation costs, which have decreased for five consecutive years.