When the Pittsburgh City Council passed the 2011 budget by overriding Mayor Luke Raventsahl’s veto, it anticipated additional money from the Pittsburgh Parking Authority through higher parking rates. Those new rates have yet to go into effect and the fingers are starting to point.
The payment in lieu of taxes (PILOT) from the Parking Authority is to double to $2.6 million this year and then grow to $9.3 in 2012 and beyond. Taxes from the higher would also increase the city’s revenues. It is all part of the council’s plan to shore up the city’s sagging pension fund.
The Intergovernmental Cooperation Authority (ICA) approved the budget, which was passed on the last day of the year, and its members are now asking if the budget will remain in balance. During a recent ICA meeting Board Chair Barbara McNees said, “ We are going to have to do some analysis on this, see where everybody is on this.”
Where they are right now is fighting. “What we’ve asked council for is kind of an outline of what they feel the appropriate rates are to meet the goals they have set forth for the budget,” said Mayor Luke Ravenstahl at a recent public event.
The council created a list of parking rate increases for use during the budget debate and as recently as last month sent it on to the mayor’s office at his request. But the numbers do not satisfy Ravenstahl. “They have given us the numbers but the data behind it doesn’t add up to the amount of money they’ve suggested, the problem is it doesn’t get us the revenue we need,” said Ravenstahl.
“I’ve not seen numerical evidence of that, I’ve not seen any financial analysis of that,” said Pittsburgh City Council Member Natalia Rudiak. “I’d like to have a real conversation about that, it sounds like a talking point, I want to see the spread sheet.” Rudiak, who is also a Parking Authority Board Member, suggests that the Council Budget Director and the Mayor’s Budget Director sit down in a room and work out the differences. Until now nearly all of the conversations have been by mail or through the media and Rudiak is upset. “We need to work together to make sure our pension fund is fully funded. I’m not playing games,” said Rudiak.
If the new rates are not approved by the board in the next few months there will not be enough time to collect the extra funds by the 4th quarter of the year when the payment is due. That means the Parking Authority would either have to find the money elsewhere to make the PILOT or the city would have to find the money in its budget.
Mayor Ravenstahl is looking to Rudiak to act as a member of the Parking Authority Board. “The Authority is the only one able to raise those rates,” said Ravenstahl. Rudiak introduced a plan to raise rates in the fall and the board rejected the idea. The mayor appoints all five members of the board.
Rudiak believes it is up to the mayor to get the new rates in place. “We as city council are a legislative body, we write legislation. The mayor and the administration are the executive body it is their job to execute whatever legislation the city council passes,” said Rudiak.
The Pittsburgh Parking Authority next meets April 21. Council will investigate the six-year budget outlook at a special meeting Tuesday.
Showing posts with label Parking Authority. Show all posts
Showing posts with label Parking Authority. Show all posts
Monday, April 11, 2011
Thursday, March 31, 2011
ICA Faces He Said - She Said on City Budget
The members of the Pittsburgh Intergovernmental Cooperation Authority sat looking a bit befuddled this afternoon as City Councilman Bill Peduto read to them a letter he wrote to the mayor regarding parking revenue. The ICA requested that City Council Finance Committee Chairman Bill Peduto come before the board to explain why the city’s budget was sliding out of balance. The mayor had recently brought up the issue of less than expected payments from the Pittsburgh Parking Authority. The money is expected to help make payments to the city’s pension fund. Peduto laid the issue squarely at the feet of the Parking Authority Board, which he says is the only body that can raise parking rates and install new parking meters as is required. Peduto says the budget does not anticipate the $1.3 million in payments in lieu of Taxes (PILOT) until the 4th quarter. The idea was to allow the Authority time to get the new rate structure in place and install new parking meters capable of collecting the higher charges.
During the pension and parking debate last year, the council set a new parking rate schedule that Peduto says more than covers the increased PILOT. “There is an additional amount that goes directly to the Parking Authority so they can afford things like maintenance and improvements. It’s not as if we are just raising the rates or proposing to raise the rate just to break neutral,” says Peduto.
Peduto says the board should act quickly so it can bring in much more than the 1.3 million anticipated.
At the same time, Ravenstahl Administration Budget Director and Parking Authority Chair Scott Kunka says the Authority cannot simple act on numbers that were part of an ongoing debate in council. “A prime architect of the council plan, Councilwomen Rudiak, is a member of the Parking Authority, now we’ve had three meetings already this year and she has not once brought this mater up to the Parking Authority Board,” says Kunka. Kunka says they need to hear directly from the council what the proposed rate structure should be.
ICA Board Chair Barbara McNees says, “ We are going to have to do some analysis on this, see where everybody is on this, talk to [Peduto] talk to the mayor and see where the division of responsibilities lie.” It is not the ICA’s job to determine parking rates but it is responsible for making sure that the budget stays in balance. “The budget as passed depends on the implementation of some of this,” says McNees, “If that s not going to occur, we don’t want a budget that’s out of balance… so those are the questions we need to ask.”
Download a copy of the letter Councilman Peduto read into the ICA record here.
Tuesday, December 28, 2010
Council to Vote on Pension Funding Plan
Pittsburgh City Council has reached a deal that it feels will keep the City’s pension program from being taken over by the state while at the same time not issuing any new debt or leasing any city assets. The plan calls for an increase in parking rates at garages and meters and then promises that increased revenue over the next 30 years to the pension fund. City Controller Michael Lamb says he has spoken to the Executive Director of the Pennsylvania Public Employee Retirement Commission and has received approval for the plan. PERC is the body required by law to set the value of all municipal pension funds. If the PERC sets a value of the Pittsburgh Pension Plan below the 50% funded level the state will force a takeover of the pension fund, if it exceeds the 50% mark, Pittsburgh will be allowed to continue to manage its own fund.
Lamb estimates the higher rates would generate about $880 million dollars over the next 30 years and he says it should have a present-day value of more than $220 million. That is roughly the amount needed by the end of the year to bring the pension fund up to the 50% level. Controller Michael Lamb is to meet with a representative of the public employee retirement commission later today to come up with an exact value that can be added into the pension fund.
The plan needs the support of Mayor Luke Ravenstahl and the Pittsburgh Parking Authority. Mayor Ravenstahl has not yet taken a stance on the bill. Mayoral spokesperson Joanna Doven says, "The Mayor today will be meeting with legal and financial experts with the City and the Parking Authority to discuss the viability of the plan. After all facts are discovered, the Mayor will comment further."
The Mayor has appointed all of the members of the Parking Authority Board. Councilwoman Natalia Rudiak is a member of the Authority Board and says the package of bills includes a payment plan that gives the Authority enough money to do its job.
Council members stress that the rate increase that will be phased in over the next several years are much lower than the rate increases that would have been seen if the city would have leased the parking assets as had been proposed by Mayor Ravenstahl.
Councilman Bill Peduto says this is a much better deal than issuing a bond or leasing assets. “There is nobody who is making money off of it, there is no interest to be paid, this is the least expensive plan for the people of Pittsburgh,” says Peduto. The councilman estimates that the city would have had to pay $500-600 million in interest under the Council/Controller plan and would have allowed the leasing company to take $2.4 billion out of the city under the Mayor's.
Lamb estimates the higher rates would generate about $880 million dollars over the next 30 years and he says it should have a present-day value of more than $220 million. That is roughly the amount needed by the end of the year to bring the pension fund up to the 50% level. Controller Michael Lamb is to meet with a representative of the public employee retirement commission later today to come up with an exact value that can be added into the pension fund.
The plan needs the support of Mayor Luke Ravenstahl and the Pittsburgh Parking Authority. Mayor Ravenstahl has not yet taken a stance on the bill. Mayoral spokesperson Joanna Doven says, "The Mayor today will be meeting with legal and financial experts with the City and the Parking Authority to discuss the viability of the plan. After all facts are discovered, the Mayor will comment further."
The Mayor has appointed all of the members of the Parking Authority Board. Councilwoman Natalia Rudiak is a member of the Authority Board and says the package of bills includes a payment plan that gives the Authority enough money to do its job.
Council members stress that the rate increase that will be phased in over the next several years are much lower than the rate increases that would have been seen if the city would have leased the parking assets as had been proposed by Mayor Ravenstahl.
Councilman Bill Peduto says this is a much better deal than issuing a bond or leasing assets. “There is nobody who is making money off of it, there is no interest to be paid, this is the least expensive plan for the people of Pittsburgh,” says Peduto. The councilman estimates that the city would have had to pay $500-600 million in interest under the Council/Controller plan and would have allowed the leasing company to take $2.4 billion out of the city under the Mayor's.
Wednesday, December 15, 2010
Pension/Parking Plan Dies Again
Pittsburgh City Council has once again rejected a plan to lease parking assets to LAZ Parking. Councilman Ricky Burges gathered only two yes votes for his compromise plan at a meeting Wednesday.
Mayor Luke Ravenstahl had hoped to lease the garages and meters for 50 years and then use the upfront proceeds to bring the city’s pension plan up to the 50% funded level in order to avoid a state takeover. Council members rejected the deal and then moved a proposal to do a garage swap and bond issuance with the Parking Authority to shore up the pension fund. Still others on the council think a state take over may be the best option.
The Burgess plan shortened the length of the lease from 50 to 40 years, lowered the fee increase schedule for parking meters in neighborhoods, included revenue sharing and allowed the city to benefit from advertising on and in the garages. He feels his plan addressed all of the concerns voiced by the community and by council members. He says he is willing to work up to the last minute to find a solution. Councilwoman Theresa Smith says council should not leave the building until it finds a way to fix the pension problem.
Councilman Bruce Kraus says any lease deal will continue to fail to get five votes because there are at least five council members who will not allow the city to sell or lease any public assets. “So if we are truly interested in resolving our pension issue… Stop it. Nobody wants it. Can we stop it now and start doing what we need to do to resolve our pension problem,” says Kraus. Councilman Bill Peduto says he will not give up control of one of the few revenue streams available to the city he likened it to “selling the cow rather than the milk.” He says cities across the nation are finding “wall street firms” swooping in to pickup assets. “Do you think they are doing this to help cities pension plans and to help cities get through tough budget times? Then you think that check cashing places are out there to help poor people,” says Peduto
The revised lease fell on a 5-2 vote with two abstentions. LAZ Parking CEO Alan Lazowski says he is not ready to walk away from the deal and promised to meet with any council member to get a deal done before the end of the year. “We have spent millions of dollars in pursuit of this deal, we have thousands of man hours in this deal,” says Lazowski, “We owe it to our company, to our 6,000 employees, we owe it to the infrastructure world that is looking at this deal to say this is important for cities across the country.”
Lazowski says he feels his firm has been very responsive to every suggestion made by council members and he reminds them that he was only responding to a Request For Proposal from the Mayor’s office when he first tried to lease the parking assets.
Council members Smith, Dowd and Burgess says they will work to find a way to prevent a state take over of the pension plan but all three know time is running out to meet the December 31st deadline.
Mayor Luke Ravenstahl had hoped to lease the garages and meters for 50 years and then use the upfront proceeds to bring the city’s pension plan up to the 50% funded level in order to avoid a state takeover. Council members rejected the deal and then moved a proposal to do a garage swap and bond issuance with the Parking Authority to shore up the pension fund. Still others on the council think a state take over may be the best option.
The Burgess plan shortened the length of the lease from 50 to 40 years, lowered the fee increase schedule for parking meters in neighborhoods, included revenue sharing and allowed the city to benefit from advertising on and in the garages. He feels his plan addressed all of the concerns voiced by the community and by council members. He says he is willing to work up to the last minute to find a solution. Councilwoman Theresa Smith says council should not leave the building until it finds a way to fix the pension problem.
Councilman Bruce Kraus says any lease deal will continue to fail to get five votes because there are at least five council members who will not allow the city to sell or lease any public assets. “So if we are truly interested in resolving our pension issue… Stop it. Nobody wants it. Can we stop it now and start doing what we need to do to resolve our pension problem,” says Kraus. Councilman Bill Peduto says he will not give up control of one of the few revenue streams available to the city he likened it to “selling the cow rather than the milk.” He says cities across the nation are finding “wall street firms” swooping in to pickup assets. “Do you think they are doing this to help cities pension plans and to help cities get through tough budget times? Then you think that check cashing places are out there to help poor people,” says Peduto
The revised lease fell on a 5-2 vote with two abstentions. LAZ Parking CEO Alan Lazowski says he is not ready to walk away from the deal and promised to meet with any council member to get a deal done before the end of the year. “We have spent millions of dollars in pursuit of this deal, we have thousands of man hours in this deal,” says Lazowski, “We owe it to our company, to our 6,000 employees, we owe it to the infrastructure world that is looking at this deal to say this is important for cities across the country.”
Lazowski says he feels his firm has been very responsive to every suggestion made by council members and he reminds them that he was only responding to a Request For Proposal from the Mayor’s office when he first tried to lease the parking assets.
Council members Smith, Dowd and Burgess says they will work to find a way to prevent a state take over of the pension plan but all three know time is running out to meet the December 31st deadline.
Parking Availability In Real-Time Mobile App
Parking in Downtown’s Cultural District just got a lot easier with the option to get online, make a phone call, or check an app to check parking availability.
Introduced and implemented at noon today, ParkPGH will deliver parking vacancies in all Cultural District garages in real-time. Funded by the Benter Foundation, the free smartphone application that works on iPhones, Blackberry and Android phones uses updates from each garage in the district to tell drivers the parking availability of 25 percent of the garages downtown.
"ParkPGH connects to a central database and to the gates at each location and updates every thirty seconds to provide real-time parking availability to the Cultural District," project engineer Mark Fleming says.
Fleming made sure that ParkPGH is also available to those who don’t have the smartphone app. It can be accessed through the web, through texting PARKING or calling 412-423-8980 through which users will receive an automated response.
According to Kevin McMahon, President of the Cultural Trust, and Bill Benter who funded the project, the program was made to reduce the hassle of finding a space, and hopefully draw more people for not only performances, but also impromptu visits.
"I believe [searching for a space] is an impediment to people coming in and enjoying the wonderful things we have going on in the Cultural Trust so this is an attempt to make that easier for everyone," Benter says.
According to developers, the first trial will be assessed before citywide expansion is implemented and that evaluation should be completed by March.
"Over time it's possible that this could expand to all parking, whether it would work for metered parking, who knows? With some of the great things that technology is doing, down the road it's possible," McMahon says.
Introduced and implemented at noon today, ParkPGH will deliver parking vacancies in all Cultural District garages in real-time. Funded by the Benter Foundation, the free smartphone application that works on iPhones, Blackberry and Android phones uses updates from each garage in the district to tell drivers the parking availability of 25 percent of the garages downtown.
"ParkPGH connects to a central database and to the gates at each location and updates every thirty seconds to provide real-time parking availability to the Cultural District," project engineer Mark Fleming says.
Fleming made sure that ParkPGH is also available to those who don’t have the smartphone app. It can be accessed through the web, through texting PARKING or calling 412-423-8980 through which users will receive an automated response.
According to Kevin McMahon, President of the Cultural Trust, and Bill Benter who funded the project, the program was made to reduce the hassle of finding a space, and hopefully draw more people for not only performances, but also impromptu visits.
"I believe [searching for a space] is an impediment to people coming in and enjoying the wonderful things we have going on in the Cultural Trust so this is an attempt to make that easier for everyone," Benter says.
According to developers, the first trial will be assessed before citywide expansion is implemented and that evaluation should be completed by March.
"Over time it's possible that this could expand to all parking, whether it would work for metered parking, who knows? With some of the great things that technology is doing, down the road it's possible," McMahon says.
Wednesday, December 1, 2010
Councilmember says Third Draft of City Budget not Quite Right
Pittsburgh Mayor Luke Ravenstahl has submitted the third draft of the city's 2011 budget and five year spending plan. The first time his plan was rejected by the Intergovernmental Cooperation Authority because it included funds from leasing the city's parking assets, which was rejected by city council. The second draft was sent back because it included funds that had not been accounted for as well as insufficient contributions to the pension fund as stipulated under Act 47. The most recent version outlines a $451 million plan, with $50 million set aside for the pension fund. The city's pension only holds 27.5% of its total liabilities and it needs to reach the 50% funded mark by the end of the month to avoid state takeover. Councilman Patrick Dowd says he's not satisfied with the latest draft of the budget, in part because it doesn't do enough to bolster the the pension. "We can pay $70 (million), we can pay $80, we can pay $90...we want to make sure we're paying more into the pension fund than just our minimum." And Dowd says he's frustrated with the lack of progress in talks about fixing the city's looming pension crisis. In October city council rejected the mayor's plan to lease the city's parking garages and meters to LAZ Parking for 50 years for an upfront payment to the pension fund. In turn Ravenstahl nixed council's plan to sell the city's parking assets to the Parking Authority for a pension payment. Dowd says they've tried to meet the mayor half way."We worked on a compromise on the lease plan, really making the LAZ offer meet the council-controller plan and he's rejected that. How many times can we offer the executive branch a solution–if it's not the solution they've offered, it's not going to work–it's very frustrating at this point." Without a big payment, the Pennsylvania Municipal Retirement System will take over the city's pension next year and implement a strictly regimented payment schedule that could force the city to cut services and raise taxes.
Tuesday, November 23, 2010
New Pension Numbers Arrive
Pittsburgh City Council has new numbers in hand from the Pennsylvania Municipal Retirement System (PMRS) that shows adding either $110 million or $330 million in the next few years greatly reduces minimum yearly payments in the future. Council asked for the additional numbers as it tries to grapple with its underfunded pension program.
State law mandates that the city enter into the PMRS if it cannot get its pension fund up to the 50% funded level by the end of the year. Right now the fund is about 27% funded. If the city goes into the PMRS, the system would set “minimum municipal obligation” (MMO) levels that would bring the pension to 100% funded in 30 years. The first set of numbers showed payments averaging $120 million a year with peaks of $150 million or more in 2030. Mayor Luke Ravenstahl hoped to avoid the take over by using income from a 50-year lease of the Parking Authority’s assets to bring the fund up to the 50% level. Council rejected that plan. Council then countered with a plan to sell some city-owned parking assets to the Authority and use the proceeds to shore up the pension. Three of the mayor’s five appointees to the Parking Authority Board killed that plan.
Councilman Bill Peduto then asked the PMRS to show what would happen under several scenarios. One scenario has the city adding an extra $110 million to the pension in the next three years in an effort to reduce the MMOs in the out years. That scenario lowers the top payment $128 million in 2030. The additional money would come from funds currently in the pension but not accepted by the PMRS because of their risky nature, surpluses expected in future budgets and $45 million set aside by the council to be used for debt or pension payments. That money was the subject of a hot debate in council Monday.
Another scenario calls for the same $110 million over three years and an additional $220 million in 2014. That lowers the top payment in 2030 to $108 million. The additional $220 comes from the sale of a city owned parking garage, five surface lots and nearly 7,000 street meters to the Parking Authority, which would pay for them through the issuance of a $220 million bond. While Mayor Ravenstahl says he will not agree to such a deal, Peduto notes that there will be a mayoral election between now and 2014 and he speculates it could become a political issue.
Council members have not been available for comment today but in the past, Peduto has said that he feels the best option would be to enter the PMRS and make the additional payments. However, he has also said he would wait until he sees the new numbers before making his final decision.
See all of our Pension/Parking stories.
State law mandates that the city enter into the PMRS if it cannot get its pension fund up to the 50% funded level by the end of the year. Right now the fund is about 27% funded. If the city goes into the PMRS, the system would set “minimum municipal obligation” (MMO) levels that would bring the pension to 100% funded in 30 years. The first set of numbers showed payments averaging $120 million a year with peaks of $150 million or more in 2030. Mayor Luke Ravenstahl hoped to avoid the take over by using income from a 50-year lease of the Parking Authority’s assets to bring the fund up to the 50% level. Council rejected that plan. Council then countered with a plan to sell some city-owned parking assets to the Authority and use the proceeds to shore up the pension. Three of the mayor’s five appointees to the Parking Authority Board killed that plan.
Councilman Bill Peduto then asked the PMRS to show what would happen under several scenarios. One scenario has the city adding an extra $110 million to the pension in the next three years in an effort to reduce the MMOs in the out years. That scenario lowers the top payment $128 million in 2030. The additional money would come from funds currently in the pension but not accepted by the PMRS because of their risky nature, surpluses expected in future budgets and $45 million set aside by the council to be used for debt or pension payments. That money was the subject of a hot debate in council Monday.
Another scenario calls for the same $110 million over three years and an additional $220 million in 2014. That lowers the top payment in 2030 to $108 million. The additional $220 comes from the sale of a city owned parking garage, five surface lots and nearly 7,000 street meters to the Parking Authority, which would pay for them through the issuance of a $220 million bond. While Mayor Ravenstahl says he will not agree to such a deal, Peduto notes that there will be a mayoral election between now and 2014 and he speculates it could become a political issue.
Council members have not been available for comment today but in the past, Peduto has said that he feels the best option would be to enter the PMRS and make the additional payments. However, he has also said he would wait until he sees the new numbers before making his final decision.
See all of our Pension/Parking stories.
Monday, November 15, 2010
ICA Rejects Budget
The Pittsburgh Intergovernmental Cooperation Authority (ICA) held a public meeting to address the city's revised proposed 2011 budget and five year plan today. The ICA was created in 2004 by the state to help financially stabilize the city. The Authority rejected the mayor's second draft of a proposed budget. ICA Chair Barbara McNees says their concerns are that it "does not meet the requirements that we've required every year since we've been here for balanced, verifiable revenue." Specifically, the budget lacked the $60 million needed to help fund the city's pension. The mayor has until the end of the month to resubmit a budget and then the ICA has another 15 days to review it. McNees says the ICA has concerns about the potential takeover of the city's pension fund by the Pennsylvania Municipal Retirement System, which would require payments of more than $100 million a year to pay for the plan. McNees says "fiscal chaos is what could happen if you have to come up with $120 million in the out-years." In September the mayor put forth a $447.4 million budget that included revenue from leasing the city's parking garages and meters to a private operator. But the ICA rejected the proposal when it became clear city council would not approve the lease. In turn, the mayor rejected council's proposal to sell the parking assets to the Parking Authority to help build up the pension fund. The pension is only 27.5% funded. The ICA must approve a budget before council can vote on it.
Tuesday, November 9, 2010
Council Asks Mayor to Negotiate With Parking Authority
Pittsburgh City Council has given preliminary approval to a bill that would ask the Mayor to negotiate with the Pittsburgh Parking Authority to purchase one garage, a few surface lots and a long list of parking meters. The bill passed 8-1 with Councilman Ricky Burgess voting no.
The measure began as a bill moved by Councilwoman Theresa Smith asking the mayor to enter negotiations to reach a modified deal to lease the parking assets owned by the Parking Authority to a private company.
During debate, it quickly became clear that very few council members were willing to approve any lease deal and councilman Patrick Dowd started to suggest that they should gut the bill and fill it with amendments. Burgess argued that the bill did nothing more than to put more options on the table. Councilman Daniel Lavelle agreed, “What this legislation did was allow myself and others to have the conversation… it’s allowed me to have it with my colleagues, it’s allowed me to have it with the administration yesterday. That’s what this legislation did.” Lavelle has suggested that the city may want to lease the garages but hold on to the meters to have more control over the rates that were of most interest to local business owners and residents.
City Council President Darleen Harris says it is time to move on from the idea of leasing any of the parking assets. “We talk about fairies. From Peter Pan, J. M. Barrie says ‘you can have anything in life if you are willing to sacrifice everything else for it’ and I’m not willing to sacrifice this city,” says Harris. Councilwoman Smith shot back that she does not work in fairy tales, she works in reality and in reality the public wants a solution.
City Council President Darleen Harris is also concerned that the city would be opening the door to a lawsuit if it started to negotiate with just one party. She says she has gotten calls and letters from parking companies that have asked the city to put out a new RFP if the terms of the deal are to be changed. The mayor says he thinks they can make the changes without having to open the lease to new bids.
Councilman Dowd eventually offered amendments that changed the bill from requesting negotiations on a new lease deal to asking the mayor to work with the Parking Authority to sell the assets and use the proceeds to shore up the pension plan.
The re-written bill quickly passed and will come up for a vote Tuesday.
The measure began as a bill moved by Councilwoman Theresa Smith asking the mayor to enter negotiations to reach a modified deal to lease the parking assets owned by the Parking Authority to a private company.
During debate, it quickly became clear that very few council members were willing to approve any lease deal and councilman Patrick Dowd started to suggest that they should gut the bill and fill it with amendments. Burgess argued that the bill did nothing more than to put more options on the table. Councilman Daniel Lavelle agreed, “What this legislation did was allow myself and others to have the conversation… it’s allowed me to have it with my colleagues, it’s allowed me to have it with the administration yesterday. That’s what this legislation did.” Lavelle has suggested that the city may want to lease the garages but hold on to the meters to have more control over the rates that were of most interest to local business owners and residents.
City Council President Darleen Harris says it is time to move on from the idea of leasing any of the parking assets. “We talk about fairies. From Peter Pan, J. M. Barrie says ‘you can have anything in life if you are willing to sacrifice everything else for it’ and I’m not willing to sacrifice this city,” says Harris. Councilwoman Smith shot back that she does not work in fairy tales, she works in reality and in reality the public wants a solution.
City Council President Darleen Harris is also concerned that the city would be opening the door to a lawsuit if it started to negotiate with just one party. She says she has gotten calls and letters from parking companies that have asked the city to put out a new RFP if the terms of the deal are to be changed. The mayor says he thinks they can make the changes without having to open the lease to new bids.
Councilman Dowd eventually offered amendments that changed the bill from requesting negotiations on a new lease deal to asking the mayor to work with the Parking Authority to sell the assets and use the proceeds to shore up the pension plan.
The re-written bill quickly passed and will come up for a vote Tuesday.
Thursday, October 28, 2010
Parking Rejects Bond Review Proposal
The Pittsburgh Parking Authority Board has put the breaks on City Council’s plans to fund the pension program by selling its parking assets. By a 3-2 vote, the board rejected a proposal by Pittsburgh City Councilwoman and board member Natalia Rudiak that would have sent out a request for proposal to get bids to review the viability of a $220 million bond issuance. Specifically, the RFP would have asked for bids to appraise the assets, hire a consultant to look at what rates could be charged, hire a financial advisor to review the viability of the bond and hire bond council to look at the tax status of such a bond. Some members of council and the Pittsburgh Controller believe it would be a tax exempt bond but the mayor’s office disagrees. The City Council was hoping the Parking Authority would approve the proposal and then eventually let the bond and purchase a city owned garage, 5 surface lots and miles of parking meters. Rudiak reminded board members that they were only voting for an RFP, not to purchase the assets. Board member and City Finance Director Scott Kunka called that a “ruse” and voted no. Christopher D’Addario followed suit and board member Linda Judson voted no saying she did not think the Parking authority was where such a review process should begin. Judson says council could do the work but she added that if the city council were to hire consultants she hopes the board would have input into the review process. Natalia Rudiak says the idea is not dead and she will return to council members to look at other options. Mayor Luke Ravenstahl says he is drawing up a budget that assumes the pension will be taken over by the state. During the public comment portion of the meeting Mayor Ravenstahl told the board that he would not support any plan that put the city further into debt. “It is irresponsible to open a new credit card to pay for an old credit card,” says Ravenstahl. He says the vote was a waste of time.
Friday, October 22, 2010
Mayor Condemns Council's Pension/Parking Plan
Pittsburgh Mayor Luke Ravenstahl today rejected city council's plan to sell Pittsburgh's parking assets to the Parking Authority in order to pay down a portion of the city's pension debt. "I have no intention whatsoever of supporting this plan and I think if the residents of the city saw it they would support that position as well." Ravenstahl cited the lack of public airing of council's plan and the parking rate hikes that it would implement as two of his chief concerns, as well as the still unknown financial burden that a state takeover by the Pennsylvania Municipal Retirement System would require. One of council's issues with the mayor's plan to privatize the city's parking garages and meters was the steep hikes it would mean for residents. Today, Ravenstahl called their concern disingenuous, while comparing the rates council would implement to help pay down the 30 year bond the Parking Authority would float to purchase the parking assets for $225 million. Legislation will be presented to the Parking Authority Board on Wednesday to buy the parking assets and Ravenstahl says he won't seek to influence their decision though he hopes they'll reject it. He plans to hold a meeting on Monday at 1 p.m. in council chambers to compare his recently rejected plan for a private takeover of the parking assets, to city council's plan. His plan would have leased parking assets to LAZ Parking and JP Morgan Asset Management for $452 million dollars for 50 years - council panned his proposal 7-1. Ravenstahl says if some other action isn't worked out he will veto council's plan and prepare for state takeover.
Click here for more information on council's pension/parking plan.
Click here for more information on council's pension/parking plan.
Wednesday, October 20, 2010
Council Moves Forward on a Pension Plan
Pittsburgh council approved a preliminary plan today that would sell the city's parking assets to the Parking Authority for $220 million, float a 30 year bond to buy those assets and increase parking fees to pay down the debt. Under the plan, that payment would lift the city's pension fund to the 50% funded level; currently it hovers below the 30% funded mark. The 50% level means state takeover would no longer be mandatory. But a number of question marks remain. The Parking Authority still has to approve the deal and councilwoman Natalia Rudiak, who also serves on the Authority's Board, plans to introduce legislation to the Authority next week. Mayor Luke Ravenstahl would also have to approve the deal and he has said he's not interested in allowing the city to take on any more debt. Yet another scenario would allow the city to bring the pension fund to 50% percent funded by selling assets to the Parking Authority and then turning the fund over to state control voluntarily. Everyone is still waiting on the Pennsylvania Municipal Retirement System to give hard numbers on how much the city would have to pay into the pension fund annually to bring it to the fully funded level. Council also discussed the need improve the technology used at meters and garages and in collection to move the city's parking into the 21st century. Councilman Ricky Burgess--who favored he mayor's plan to privatize parking assets and a voluntary take over by the state--was the lone no vote on all of the parking/pension legislation.
Thursday, October 7, 2010
Council Issues Subpoena to Mayor
As Pittsburgh City Council continues its debate over how to best use parking assets to shore up the city’s flagging pension fund, it has issued a subpoena to Mayor Luke Ravenstahl to turn over pension fund data by noon Friday. Council President Darlene Harris says the subpoena asks for the data to be sent to the state rather than to her office. Harris says the Pennsylvania Municipal Retirement System requested the data in 2009 and never received it. Council members contacted the fund asking for the data and Secretary James Allen informed them that the numbers were never produced. The subpoena asks for the names of everyone in the city pension fund and demographic data about them including monthly payments, age and sex. Harris says council members are exploring exactly what it would mean to the city if the state took over the city-run fund. The mayor’s office has said that it would be forced to increase payments by more than 25 million dollars a year under a state take over. Council hopes the state will use the data to come up with an exact number of how much it will be required to pay into the system on an annual basis if there is a takeover. Currently the city’s pension program is less than 30% funded and the state has said if that number does not hit 50% by the end of the year it will take control of the fund.
Mayor Ravenstahl has said that if there is a state takeover it would mean annual city payments to the pension fund would increase by as much as $27 million, resulting in budget cuts and/or tax hikes.
Councilman Bill Peduto says neither Council nor the Pennsylvania Municipal Retirement System knows where the mayor got the $27 million figure. Peduto says they need the subpoenaed information so as to determine an accurate figure. Peduto added that it wouldn't be a state takeover but rather the city's pension fund would be managed by the Retirement System which already manages 900 other pension funds.
Council has given itself till the end of the month to come up with alternatives to the mayor’s plan to lease the parking assets for the next 50 years to J.P. Morgan Asset Management and Connecticut-based LAZ Parking, for more than $450 million. Harris says the tight time line forced council to go the route of a subpoena rather than relying on a letter to the mayor’s office. However, Harris says she also sent a more friendly request directly to the mayor’s office.
Mayor Ravenstahl has said that if there is a state takeover it would mean annual city payments to the pension fund would increase by as much as $27 million, resulting in budget cuts and/or tax hikes.
Councilman Bill Peduto says neither Council nor the Pennsylvania Municipal Retirement System knows where the mayor got the $27 million figure. Peduto says they need the subpoenaed information so as to determine an accurate figure. Peduto added that it wouldn't be a state takeover but rather the city's pension fund would be managed by the Retirement System which already manages 900 other pension funds.
Council has given itself till the end of the month to come up with alternatives to the mayor’s plan to lease the parking assets for the next 50 years to J.P. Morgan Asset Management and Connecticut-based LAZ Parking, for more than $450 million. Harris says the tight time line forced council to go the route of a subpoena rather than relying on a letter to the mayor’s office. However, Harris says she also sent a more friendly request directly to the mayor’s office.
Saturday, September 25, 2010
Evaluation of Parking Assets
A $250,000 study commissioned by Pittsburgh Council suggests that the city's parking garages and meters would likely bring in $2.4 billion over the next 50 years. Council, is looking for alternatives to Mayor Luke Ravenstahl's plan to lease the garages and meters for 50 years. The mayor this week unveiled the high bid...$452 million in an upfront payment.
The mayor wants to use $200 million from that payment to bolster the city's sagging pension fund which is at about 28% of the $989 million obligation to workers and retirees. The state has threatened to takeover the pension, meaning higher annual payments by the city, unless the fund is at a minimum of 50% of the obligation by January.
Jeff Andrien, president of Finance Scholars Group which did the study for Council, says the cash value of the city's parking assets depends on how much demand will drop as parking prices increase. Andrien says the total value of the parking assets was put at $401 million. The study did not make any recommendations on whether the city should lease the garages, float a bond to fund the pensions and use parking revenues to pay off the loan, or let the state take over the pension fund.
The mayor wants Council to approve his lease plan by November 1.
The mayor wants to use $200 million from that payment to bolster the city's sagging pension fund which is at about 28% of the $989 million obligation to workers and retirees. The state has threatened to takeover the pension, meaning higher annual payments by the city, unless the fund is at a minimum of 50% of the obligation by January.
Jeff Andrien, president of Finance Scholars Group which did the study for Council, says the cash value of the city's parking assets depends on how much demand will drop as parking prices increase. Andrien says the total value of the parking assets was put at $401 million. The study did not make any recommendations on whether the city should lease the garages, float a bond to fund the pensions and use parking revenues to pay off the loan, or let the state take over the pension fund.
The mayor wants Council to approve his lease plan by November 1.
Tuesday, September 21, 2010
Parking Bid Higher Than Expected
The high bidder to take over operation of Pittsburgh's parking garages and meters is Pittsburgh Parking Partners. It's a consortium of investors advised by J. P. Morgan and P-4 partners, an affiliate of Hartford-based L.A.Z. Parking. L.A.Z. manages mores than 1,300 locations in 99 cities in 21 states. The offer is $451 million for the 5o year lease of the garages and meters.
Mayor Luke Ravenstahl wanted a minimum of $300 million, $100 million of which would go to wipe out Pittsburgh Parking Authority debt, and the other $200 million to bolster the city's sagging pension fund.
The city has until January to get the pension fund's assets up to at least 50% of its nearly $990 million obligations toward retired and current city workers. The pension program is currently about 28% funded. If the city does not reach the 50% level by January, the state has threatened a takeover.
The mayor has said the money left over from lease could be funneled into the pension fund or used for capital improvements. “This number certainly exceeded our expectations and further solidifies my view that this partnership is the best solution to protect our residents from the burden of higher taxes, more debt, or serious service cuts. I look forward to having more productive discussions with council members and I hope that they support this plan. ”
In addition to the upfront payment, the 50-year partnership agreement requires the operator to invest at least $50 million over the next 15 years to overhaul and rebuild three aging Downtown garages. In addition, the agreement lays out requirements for the operator to implement new parking meter technology, such as those allowing meter payments by credit card or mobile phones. This investment is estimated to cost the operator more than $8 million dollars. Ravenstahl wants City Council to give its approval by October 1.
But City Council Finance Chair Bill Peduto called this bid just the "end of the first quarter of the game" and that he's pleased they have a baseline to work from....
"But there are still three other options on the table. First, the Mayor’s proposal to privatize parking. Second, keeping the asset public and doing a bond deal to finance the pension gap. Third, joining with cities from across Pennsylvania in a state pension program. Fourth, a hybrid of the above options....... we still need to know the true value of our parking assets. Friday’s release of City Council’s independent consultant’s analysis will provide the value of the asset, as well as independent economic analysis of the options. This information will provide the framework for a healthy discussion in the coming weeks about what is best for the citizens of Pittsburgh.”
Mayor Luke Ravenstahl wanted a minimum of $300 million, $100 million of which would go to wipe out Pittsburgh Parking Authority debt, and the other $200 million to bolster the city's sagging pension fund.
The city has until January to get the pension fund's assets up to at least 50% of its nearly $990 million obligations toward retired and current city workers. The pension program is currently about 28% funded. If the city does not reach the 50% level by January, the state has threatened a takeover.
The mayor has said the money left over from lease could be funneled into the pension fund or used for capital improvements. “This number certainly exceeded our expectations and further solidifies my view that this partnership is the best solution to protect our residents from the burden of higher taxes, more debt, or serious service cuts. I look forward to having more productive discussions with council members and I hope that they support this plan. ”
In addition to the upfront payment, the 50-year partnership agreement requires the operator to invest at least $50 million over the next 15 years to overhaul and rebuild three aging Downtown garages. In addition, the agreement lays out requirements for the operator to implement new parking meter technology, such as those allowing meter payments by credit card or mobile phones. This investment is estimated to cost the operator more than $8 million dollars. Ravenstahl wants City Council to give its approval by October 1.
But City Council Finance Chair Bill Peduto called this bid just the "end of the first quarter of the game" and that he's pleased they have a baseline to work from....
"But there are still three other options on the table. First, the Mayor’s proposal to privatize parking. Second, keeping the asset public and doing a bond deal to finance the pension gap. Third, joining with cities from across Pennsylvania in a state pension program. Fourth, a hybrid of the above options....... we still need to know the true value of our parking assets. Friday’s release of City Council’s independent consultant’s analysis will provide the value of the asset, as well as independent economic analysis of the options. This information will provide the framework for a healthy discussion in the coming weeks about what is best for the citizens of Pittsburgh.”
Wednesday, August 11, 2010
Mayor Wants Bids For Parking Lease By September 15
Pittsburgh Mayor Luke Ravenstahl has released a final request for proposals (RFP) to 7 pre-qualified investors to lease city parking garages and meters for 50 years. The mayor is hoping that a lease agreement will bring a minimum of $300 million upfront....$200 million to bring the pension fund up to 50% of its $967 million liability, and $100 million to pay down the City Parking Authority debt. Ravenstahl said adjustments were made to the original RFP following 3 neighborhood meetings...
“We have addressed the concerns of residents, small business owners and council members as best as we could while still ensuring that the upfront value is generated to protect those same constituents from drastic tax increases, service cuts, or a combination of both. Unfortunately, we have inherited this serious problem and are now forced into a situation where doing nothing is not an option. This solution is the best solution for our City.”
Unless the city funds the pension obligation by at least 50% by January, the state has threatened a takeover and would require the city to increase annual payments to the pension fund by $30 million.
Councilman Patrick Dowd says the mayor is just making minor adjustments and is sticking with his plan to privatize public assets(garages and meters)....
"Controller Michael Lamb, Council President Darlene Harris and I have been very patient..allowing the mayor to put this out to bid and see what kind of number he can catch. For the sake of the city, we're hoping he gets a great number, but we're skeptical and concerned, and think there are other ways to accomplish the same goals."
Some of the adjustments involve enforcement. Currently parking meters are not enforced on Sundays. The mayor's original proposal would have allowed enforcement after 1 p.m. on Sundays. There would be no Sunday enforcement under this final plan. Under the original plan, all city meters would have been enforced until 10 p.m. Monday through Saturday. The revised plan halts meter enforcement at 6 p.m. in Allentown, Beechview, Carrick, East Liberty, Lawrenceville and the West End.
There have been concerns about huge jumps in parking meter rates. The original plan would have allowed rates in Carrick to rise from the current 50 cents an hour to $1 by 2014. The final plan freezes the 50 cents an hour rate for 5 years because of competition from neighboring suburban business districts. The 50 cents an hour rate in Bloomfield, which will lose hundreds of jobs at West Penn Hospital will remain till January 2012 and then would increase to $1.50 an hour by 2014.
The revised plan also calls for the city to share advertising revenue with the contractor. Councilman Dowd called that a small concession because it's hard to predict what advertising revenues would be available over the next 50 years.
The mayor said the city had to make some concessions to get these adjustments....
"we also had to compromise on other changes to ensure that we receive an upfront value that is significant enough to shore up our pension fund and save our residents from the ramifications of a state takeover.”
Those concessions include expanding the non-compete zone into an area that extends further into the Golden Triangle that discourages the building of new parking garages by the city or the Parking Authority.
The deadline for the bids is September 15 and the mayor wants council to approve the legislation by October 1. Councilman Dowd says the mayor is constricting the process..."This is a decision that will affect the city for 50 years...we should spend more than 2 or 3 weeks debating it."
“We have addressed the concerns of residents, small business owners and council members as best as we could while still ensuring that the upfront value is generated to protect those same constituents from drastic tax increases, service cuts, or a combination of both. Unfortunately, we have inherited this serious problem and are now forced into a situation where doing nothing is not an option. This solution is the best solution for our City.”
Unless the city funds the pension obligation by at least 50% by January, the state has threatened a takeover and would require the city to increase annual payments to the pension fund by $30 million.
Councilman Patrick Dowd says the mayor is just making minor adjustments and is sticking with his plan to privatize public assets(garages and meters)....
"Controller Michael Lamb, Council President Darlene Harris and I have been very patient..allowing the mayor to put this out to bid and see what kind of number he can catch. For the sake of the city, we're hoping he gets a great number, but we're skeptical and concerned, and think there are other ways to accomplish the same goals."
Some of the adjustments involve enforcement. Currently parking meters are not enforced on Sundays. The mayor's original proposal would have allowed enforcement after 1 p.m. on Sundays. There would be no Sunday enforcement under this final plan. Under the original plan, all city meters would have been enforced until 10 p.m. Monday through Saturday. The revised plan halts meter enforcement at 6 p.m. in Allentown, Beechview, Carrick, East Liberty, Lawrenceville and the West End.
There have been concerns about huge jumps in parking meter rates. The original plan would have allowed rates in Carrick to rise from the current 50 cents an hour to $1 by 2014. The final plan freezes the 50 cents an hour rate for 5 years because of competition from neighboring suburban business districts. The 50 cents an hour rate in Bloomfield, which will lose hundreds of jobs at West Penn Hospital will remain till January 2012 and then would increase to $1.50 an hour by 2014.
The revised plan also calls for the city to share advertising revenue with the contractor. Councilman Dowd called that a small concession because it's hard to predict what advertising revenues would be available over the next 50 years.
The mayor said the city had to make some concessions to get these adjustments....
"we also had to compromise on other changes to ensure that we receive an upfront value that is significant enough to shore up our pension fund and save our residents from the ramifications of a state takeover.”
Those concessions include expanding the non-compete zone into an area that extends further into the Golden Triangle that discourages the building of new parking garages by the city or the Parking Authority.
The deadline for the bids is September 15 and the mayor wants council to approve the legislation by October 1. Councilman Dowd says the mayor is constricting the process..."This is a decision that will affect the city for 50 years...we should spend more than 2 or 3 weeks debating it."
Monday, July 26, 2010
4 Hearings Set on Parking Lease Draft
Pittsburgh City Council President Darlene Harris has set dates for four public meetings to discuss Mayor Luke Ravenstahl’s plan to lease the city’s parking assets. Harris says they will hold the meetings in the neighborhoods that will be impacted the most.
Each meeting will be held at 6:30 p.m., dates and locations:
Monday, July 26 – Downtown – in City Council Chambers, 5th Floor, City-County Building, enter on Grant street side
Tuesday, July 27 – South Side – Pittsburgh Federation of Teachers Headquarters -- 10 S. 19th Street at the River
Thursday, July 29 – Oakland – Pittsburgh Board of Education headquarters – 341 S. Bellefield Avenue, second floor
Monday, August 2 – North Side – Martin Luther King, Jr. Elementary School Cafeteria –
50 Montgomery Street – enter by the loading dock
Harris suggests residents read the draft agreement posted on council’s web page. The Mayor has proposed a 50-year lease. A study commissioned by the Parking Authority to evaluate its parking garages and meters is also available online. Harris says, “These four meetings will be the public’s best opportunity to comment on the concession agreements before an official meeting of Council.” Harris says this may be the most important vote she will ever cast as a councilmember. Council has commissioned a study of the value of the city’s parking assets. That study is expected to be published this fall and Harris says once that is in hand another round of hearings will be held.
Each meeting will be held at 6:30 p.m., dates and locations:
Monday, July 26 – Downtown – in City Council Chambers, 5th Floor, City-County Building, enter on Grant street side
Tuesday, July 27 – South Side – Pittsburgh Federation of Teachers Headquarters -- 10 S. 19th Street at the River
Thursday, July 29 – Oakland – Pittsburgh Board of Education headquarters – 341 S. Bellefield Avenue, second floor
Monday, August 2 – North Side – Martin Luther King, Jr. Elementary School Cafeteria –
50 Montgomery Street – enter by the loading dock
Harris suggests residents read the draft agreement posted on council’s web page. The Mayor has proposed a 50-year lease. A study commissioned by the Parking Authority to evaluate its parking garages and meters is also available online. Harris says, “These four meetings will be the public’s best opportunity to comment on the concession agreements before an official meeting of Council.” Harris says this may be the most important vote she will ever cast as a councilmember. Council has commissioned a study of the value of the city’s parking assets. That study is expected to be published this fall and Harris says once that is in hand another round of hearings will be held.
Wednesday, June 30, 2010
Mayor Outlines Parking Lease Plan
Mayor Luke Ravenstahl says chartering Pittsburgh’s parking garages and meters to a private firm is the best way to avoid state takeover of the city’s ailing pension fund.
Today, he released documents outlining the terms of a 50-year lease. The mayor says he wants a down payment of at least $200 million with $15 million more coming in each year thereafter.
Unless the city receives a windfall, all of the lease’s revenue would go toward the pension fund, which is only 30% funded. The pension liability has grown to $990 million and covers benefits for all city employees.
Pennsylvania’s legislature has warned city leaders that unless Pittsburgh funds its pension at least 50% ($495 million) by December 31, the state will take it over. Ravenstahl says that would mean yearly payments of $30 million.
“To illustrate what it means: a property tax increase of 24%, a wage tax increase of 44%, or for reference to the reduction of workforce, what would it mean? It would mean reducing our police force by approximately 400 officers,” says Ravenstahl.
A lease would allow for gradual increases of garage and meter rates. Hourly meter rates downtown and in Oakland would increase by 50 cents each year until 2014, while outlying neighborhoods would see a total increase of just 50 cents. Neighborhood meter rates will increase according to their “tier” – until 2014, when rates will only increase according to the Consumer Price Index.
Ravenstahl says the city will still own the assets, and all Parking Authority employees not retained by the lessee will be offered jobs with the city.
The mayor says once bids for the parking assets come in, City Council will have two months to deliberate: he says a vote is needed by September 15 for the city to have enough time to finalize the deal and put the $200 million in the bank before New Year’s Eve.
Today, he released documents outlining the terms of a 50-year lease. The mayor says he wants a down payment of at least $200 million with $15 million more coming in each year thereafter.
Unless the city receives a windfall, all of the lease’s revenue would go toward the pension fund, which is only 30% funded. The pension liability has grown to $990 million and covers benefits for all city employees.
Pennsylvania’s legislature has warned city leaders that unless Pittsburgh funds its pension at least 50% ($495 million) by December 31, the state will take it over. Ravenstahl says that would mean yearly payments of $30 million.
“To illustrate what it means: a property tax increase of 24%, a wage tax increase of 44%, or for reference to the reduction of workforce, what would it mean? It would mean reducing our police force by approximately 400 officers,” says Ravenstahl.
A lease would allow for gradual increases of garage and meter rates. Hourly meter rates downtown and in Oakland would increase by 50 cents each year until 2014, while outlying neighborhoods would see a total increase of just 50 cents. Neighborhood meter rates will increase according to their “tier” – until 2014, when rates will only increase according to the Consumer Price Index.
Ravenstahl says the city will still own the assets, and all Parking Authority employees not retained by the lessee will be offered jobs with the city.
The mayor says once bids for the parking assets come in, City Council will have two months to deliberate: he says a vote is needed by September 15 for the city to have enough time to finalize the deal and put the $200 million in the bank before New Year’s Eve.
Tuesday, April 6, 2010
Closed-Door Meetings on Parking and Pensions
Pittsburgh Mayor Luke Ravenstahl is to hold separate closed-door meetings with Council members this afternoon to discuss use of the city's parking assets to bolster its sagging pension fund. The mayor will meet with no more than 4 Councilors at a time. A policy discussion with 5 or more council members would require a public meeting.
The administration's Director of Finance Scott Kunka says that the meetings are an effort "to build consensus because there are a lot of stakeholders" and that includes union members who work at the city-owned garages and other union workers who are invested in the pension fund, as well as downtown businesses and city taxpayers.
There have been 3 proposals put forth to use the parking assets to get an infusion of cash to get the city's pension fund to at least the 50% mark of its obligation. It's currently at about 30% of the $989.5 million that is owed.
Mayor Ravenstahl wants to lease city-owned parking assets for 50 years for $200 million. Councilman Patrick Dowd and City Controller Michael Lamb have proposed shifting some of the parking assets directly to the pension fund. Council President Darlene Harris has suggested floating a $200 million bond and using the parking revenues to pay back the bond and the interest.
Kunka says there is "no silver bullet in this case" but the mayor's plan makes the most sense because it's a win-win-win........a win for the pensioners, a win for the fund itself, and a win for taxpayers who will now have a pension fund moving toward solvency that's not going to cause massive tax increases or cuts in services."
City Council authorized an outside study of the 3 plans. Kunka says under the mayor's plan, they expect to open bids for the lease in early July which would allow enough time to get a deal to meet the January deadline the state imposed for Pittsburgh to reach the 50% level of its pension obligation.
The administration's Director of Finance Scott Kunka says that the meetings are an effort "to build consensus because there are a lot of stakeholders" and that includes union members who work at the city-owned garages and other union workers who are invested in the pension fund, as well as downtown businesses and city taxpayers.
There have been 3 proposals put forth to use the parking assets to get an infusion of cash to get the city's pension fund to at least the 50% mark of its obligation. It's currently at about 30% of the $989.5 million that is owed.
Mayor Ravenstahl wants to lease city-owned parking assets for 50 years for $200 million. Councilman Patrick Dowd and City Controller Michael Lamb have proposed shifting some of the parking assets directly to the pension fund. Council President Darlene Harris has suggested floating a $200 million bond and using the parking revenues to pay back the bond and the interest.
Kunka says there is "no silver bullet in this case" but the mayor's plan makes the most sense because it's a win-win-win........a win for the pensioners, a win for the fund itself, and a win for taxpayers who will now have a pension fund moving toward solvency that's not going to cause massive tax increases or cuts in services."
City Council authorized an outside study of the 3 plans. Kunka says under the mayor's plan, they expect to open bids for the lease in early July which would allow enough time to get a deal to meet the January deadline the state imposed for Pittsburgh to reach the 50% level of its pension obligation.
Saturday, March 20, 2010
Harris Wants to Boost Parking Fines
There's another proposal to help bolster the city of Pittsburgh's underfunded pension obligations. Council President Darlene Harris wants to increase fines for parking violations. Council members Patrick Dowd, Bruce Kraus, Bill Peduto, Natalia Rudiak and Doug Shields are co-sponsoring the measure that would increase fines for expired on-street meter in the downtown and Oakland sections of the city from the current $16 to $30, and for expired on-street meters elsewhere from $11 to $20. The fines for parking too close to an intersection or fire hydrant would rise from $15 to $25. Harris says parking fines have not gone up in 2 decades and the change could bring in an additional $2 million this year and and extra $5 million annually after that.
Harris' measure comes as council considers competing plans to get an infusion of cash into the pension fund to get it to the state-mandated 50% level by next January. Mayor Luke Ravenstahl wants to lease the city parking garages for 50 years; Dowd and City Controller Michael Lamb have suggested transferring some of the assets of the Parking Authority directly to the pension fund; and, Harris has proposed floating bonds based on future parking revenue.
Harris' measure comes as council considers competing plans to get an infusion of cash into the pension fund to get it to the state-mandated 50% level by next January. Mayor Luke Ravenstahl wants to lease the city parking garages for 50 years; Dowd and City Controller Michael Lamb have suggested transferring some of the assets of the Parking Authority directly to the pension fund; and, Harris has proposed floating bonds based on future parking revenue.
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