Pittsburgh's $608 million budget includes no tax increase

Pittsburgh City Council on Tuesday approved Mayor Bill Peduto’s $608 million operating and $108 million capital spending plans for 2020 but noted the numbers could change, depending on the outcome of ongoing contract negotiations with the police union.

The operating budget represents a $33 million increase in spending over this year but contains no increase in real estate taxes. Capital spending is going down by about $22 million from the $130 million budgeted in 2019.

Pittsburgh residents will see a 0.5 mill real estate tax increase in 2020 because in November voters approved a ballot referendum that sought the increase to fund improvements in city parks. The city millage rate will increase from 8.06 mills to 8.56 mills.

Council members approved the budgets by an 8-0 vote with Councilwoman Darlene Harris abstaining. Harris, a vocal Peduto critic who is leaving office in January, has repeatedly opposed the mayor’s budgets.

Councilwoman Theresa Kail-Smith said she was concerned about an increase in permit fees, particularly park shelter rentals. The shelter increase ranges from $5 to $90 depending on the park and shelter.

“I know there’s a cost associated with (shelter maintenance),” Kail-Smith said, adding that she planned to talk with the administration about minimizing the increase. “I’m not opposed, but we want to make sure we’re doing it in a way that’s fair and makes sense.”

The city and the Fraternal Order of Police Fort Pitt Lodge 1, which represents about 900 city police officers, are awaiting an arbitrator’s decision on a new multi-year contract that is expected to be costly. The old contract expired in December 2018.

An arbitration panel in October awarded the city firefighters’ union a five-year contract that includes raises totaling 20% over five years. Pittsburgh paramedics in 2018 received 17.3% pay hikes on average under a new contract.

Councilman Ricky Burgess, who chairs the Finance Committee, and Smith said they support higher wages for police officers.

“There’ll be enough money to pay for it,” Burgess said. “My issue is how we reconcile it.”

Council separately approved three bills to combat racism in the city.

The legislation declares racism a public health crisis and establishes a leadership forum and investment fund to eliminate racial inequalities and barriers. Councilman R. Daniel Lavelle, one of the sponsors, said officials would seek private donations for the fund.

Experts assembled by council earlier this month described racism as the fundamental cause of health disparities and other inequities that black residents face daily, in such areas as housing, employment and wealth accumulation.