Peduto submits 2017 Operating, Capital Budgets & Five-Year Financial Plan to ICA

The $539.4 million operating budget contains no tax increases.

The 2017 budgets and five year financial plan increase Public Safety Bureau forces. Police staffing is projected to reach 900 full-time officers (the highest staffing level since 2002); one Firefighter and two Police recruit classes are funded; and EMS has funding to hire 20 Emergency Medical Technicians (EMTs). The new budgets also maintain the 2016 commitment to increase funding for police vehicles to $1.6 million a year; invest $7.1 million into neighborhood and community development projects and dedicate $2.5 million in demolition funds to enhance quality of life and public safety measures in neighborhoods throughout the city.

[pullquote]”I am proud to introduce another Pittsburgh budget that is again fiscally responsible and in alignment with the city’s long-term recovery. While there is still work to be done, it keeps us on the path to finally climb out of fiscal oversight in 2019, with a five-year forecast that takes us to full recovery that year and beyond.”  [/pullquote]

Capital improvements featured in the 2017 budget include:

• $15.1 million for street resurfacing and $12.6 million for facility improvements including critical public safety facilities
• Efforts to increase operation efficiency, including continued rollout of DPW’s use of trash can sensors for plotting trash pickup routes
• $2.2 million for the installation of a computerized station alerting system for Fire and EMS stations that will reduce the impacts of the stress of listening to radio traffic and increase performance by making the dispatch process more efficient through automation
• Activation buttons for lighting at Citiparks sports court facilities (hockey, basketball, tennis), promoting electricity conservation and improved quality of life in residential areas near facilities
• Allocation of $100,000 to add inclusive and accessible playground equipment to various locations
• A $100,000 grant for the development of a comprehensive strategy and the prioritization of city step maintenance

As part of Mayor Peduto’s continued efforts to deliver core municipal services, the Operating Budget reflects a departmental reorganization, including the creation of the Department of Mobility and Infrastructure to improve the planning, financing and implementation of transportation projects citywide, to strengthen the coordination of all mobility initiatives, and to develop and execute a long-term vision for smart transportation in the city.

An overview of the 2017 Operating and Capital Budgets by Office of Management and Budget is here. The 2017 operating and capital budgets and five year plan submitted today to ICA follow six key elements:
Reinforce the city’s commitment to achieving the primary objectives of the Act 47 Recovery Plan through efforts including:

• eliminating the operating deficits in the baseline multi-year financial projection while preserving core municipal services
• gradually reducing the city’s debt burden to provide more resources to support daily operations
• keeping the city’s fund balance at an appropriate level to avoid the need for cash flow borrowings and provide an adequate buffer against unanticipated revenue shortfalls or expenditure increases
• gradually increasing the city’s pension fund contributions to the levels recommended by its actuary

Provide a fiscally responsible path to address legacy costs and position the city for long-term financial stability through:

• continued efforts to reorganize city government and improve the delivery of core services with only 3,129 General Fund positions, which is 33 fewer positions than the November 2014 Budget
• allocating an additional $203 million to the pension fund over five years beyond the state mandated minimum municipal obligation (MMO)
• reducing the city’s debt burden from 18% of general fund expenditures in 2014 to 9.7% in 2021
• continuing to add $2.5 million in annual contributions to the other post-employment benefits (OPEB) trust fund
• maintaining a minimum unassigned fund balance of 10% of general fund expenditures
• continuing the city’s efforts to reduce overall worker’s compensation costs, which have decreased for five consecutive years

Transform the organization of city government to position the City to meet the current and future needs of our residents, businesses, neighborhoods, employees, and other stakeholders by:

• establishing a new Department of Mobility & Infrastructure
• transforming the Department of Personnel into a modern human resources department focused on recruiting, training, developing, managing, and retaining a highly qualified and diverse workforce
• enhancing the capacity of the Department of City Planning toward sustainability and resiliency initiatives
• establishing the role of Chief Financial Officer to position the city on a path towards long-term financial sustainability, strengthen citywide financial management, optimize the organization and delivery of information technology services, and increase the focus on service delivery efficiency and effectiveness

Emphasize the Mayor’s priorities for enhancing the delivery of core municipal services by:

• increasing funding for street resurfacing to $15.1 million, more than double the $7.1 million
• maintaining the 2016 commitment to increase funding for police vehicles to $1.6 million a year to improve the overall condition of the fleet
• continuing to invest in Police Bureau training, equipment, and technology and enhance the Bureau’s ability to conduct data-driven community policing
• allocating funding for additional inspectors in the Department of Permits, Licenses, and Inspections to handle the increased permit workload; maintain the city’s increased investment in Learn & Earn Program through a $1M allocation for summer youth employment leveraging CDBG funds.

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 by:

• pursuing efforts to modernize the city’s licensing and inspection system; initiating a multi-year effort to overhaul the city’s self-assessed tax collection system
• continuing efforts to improve the efficiency and effectiveness of the city’s procurement function through improvements in policies, processes, and technology
• standardize and streamline capital project management processes

Allocate $75.9 million in 2017 funding for capital projects and continue the Mayor’s commitment to developing a long-term maintenance and investment plan for the city’s assets, including:

• $15.1 million for street resurfacing, providing for approximately 60 miles to be completed;
• $12.6 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
• Funding to address critical needs identified by the facility optimization plan required in the Mayor’s Executive Order related to strategic investment and maintenance of facilities; $5 million for capital equipment acquisition

A copy of the 2017 Operating Budget is here and the 2017 Capital Budget is here.