Presentation on theme: "WORKING WITH ACT 47 To secure Pittsburgh’s future."— Presentation transcript:
WORKING WITH ACT 47 To secure Pittsburgh’s future
WHERE WE ARE TODAY
PENSION AND BENEFIT COSTS ARE GROWING Legacy costs are a significant driver of the structural deficit Costs are far outpacing revenue growth Unfunded mandate from pension board rate of return assumption change. Increasing healthcare costs. Increasing MMO payment. Revised actuarial projections.
REAL ESTATE TAX REVENUE WAS SLASHED 30% reduction in millage rate led to permanent loss of revenue 30% millage rate reduction in Revenue should be increasing. Instead it has decreased by nearly 10%. Real estate taxes are the city’s largest source of annual revenue.
CAPITAL NEEDS FAR OUTPACE FUNDING We risk losing key public assets without significant investment We will never catch up if we don’t invest Capital needs have been underfunded for years. We need a significant capital infusion to fund: roads, bridges, facilities, parks, ballfields, steps, hillsides, property maintenance, neighborhood reinvestment, and our urban forest.
THE CITY IS FACING A $60M SHORTFALL The gap between what we have vs. what we need is nearly $60 million Deferred capital funding and pension investments have led to a structural deficit City is mortgaging our future by failing to invest in capital improvements and failing to fully fund our pensions. We need an infusion of $60 million annually in order to address our true needs.