Peduto outlines budget priorities, touts accomplishments in last State of City address

Outgoing Pittsburgh Mayor Bill Peduto reflected on his administration’s accomplishments Monday as he introduced spending plans for 2022 during his final State of the City Budget Address.

Peduto formally introduced a $613.2 million operating budget and a $158.2 million capital budget with no proposed tax increase.

Mayor @billpeduto is addressing City Council with his final State of the City and Budget Address this morning. pic.twitter.com/wupGZ1ePow

— Julia Felton (@JuliaFelton16) November 8, 2021

The capital budget includes $17.6 million for infrastructure improvements such as street paving, concrete replacement and ramps for people with disabilities, along with funding for traffic safety projects, landslide remediation, park improvements and recreation centers. More than $11 million would be put toward park reconstruction and improvement projects.

Money also is set aside for Rec2Tech programs at seven recreation centers where young people would have access to technology and the opportunity to learn about potential careers in fields like robotics and artificial intelligence.

The budget includes federal American Rescue Plan pandemic relief funding, which will be put toward initiatives like buying over 30 electric vehicles for city operations, including the first electric refuse trucks in the city, as well as upgrading recreation centers and installing new LED streetlights. The city was awarded more than $335 million in relief funding.

During the address, Peduto touted progress he said the city has made — financially and otherwise — while he has been in office.

He said the city was “nearly bankrupt” when he began his work on City Council before being elected as mayor. Now, he said, the city is on better financial footing, even after the covid-19 pandemic upended the economy.

“Since 2014, we have strengthened the city’s cash reserves. If something were to happen, we needed to be financially prepared — and that shock came with covid-19,” Peduto said. “Where other cities had to lay off and furlough staff, we were able to provide continuous services during the pandemic without having to lay off any employees.”

The city has improved its credit score and strengthened the pension fund for city employees, Peduto said. The pension fund, which was funded at about 27% in 2010, is now funded at nearly 72%, he said. The city contributed $99.1 million to the pension fund in 2020 — about $47.6 million above the minimum required amount. This year, the city is expected to contribute nearly $99 million, exceeding the required amount by over $46.5 million.

Peduto said the city is now recognized internationally for its initiatives to address issues such as climate change. The city won first-place honors from the U.S. Conference of Mayors’ Climate Protection Awards and the Bloomberg Mayor’s Challenge. Pittsburgh is preparing to welcome leaders from 31 countries next September when it hosts the 2022 Clean Energy Ministerial and the ministerial for Mission Innovation.

He also emphasized the city’s commitment to combating climate change with measures like the Climate Action Plan, which sets goals like achieving 100% renewable electricity for the city’s operations by 2030.

“We have rebuilt our economy in education, medicine, technology and trades that can attract people to contribute to the vibrancy of the city, the economy and the tax base,” Peduto said.

Peduto highlighted progress in modernizing city operations and improving the quality of service from the Pittsburgh Water and Sewer Authority, which has replaced over 15,000 lead service lines and is now reporting their lead testing levels are the lowest they’ve been in 20 years.

He also highlighted the creation of the Office of Community Health and Safety, which aims to provide social workers and change the way the city handles public safety.

Several council members offered their thanks to Peduto, who will leave office in January, for his service to the city.

In addressing city residents in his broadcast speech, Peduto said, “It has been the privilege of my life to serve you. I look forward to seeing the next administration build off the foundations we have laid out together for a brighter future for all.”

Council will vote to approve the budgets by the end of the year. Council can make budgetary changes at their discretion before the final vote.