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State-appointed board withdraws suit against city

| Tuesday, Aug. 23, 2005, 12:00 p.m.

A state Legislature-appointed board overseeing Pittsburgh's finances ended a five-month legal battle by formally withdrawing its lawsuit against the city.

The five-member Intergovernmental Cooperation Authority withdrew the lawsuit from Commonwealth Court after Pittsburgh's Act 47 recovery team inked the final letter of understanding with the oversight board to improve their cooperation and communication on the city's fiscal problems.

The deal would compel the city to reopen its pact with firefighters at the beginning of 2007. In its lawsuit against Pittsburgh, its firefighters and the Act 47 team, the authority claimed the contract would not save the city enough money and violated a financial recovery plan laid out under Act 47, a state law designed to help struggling municipalities.

Neither the mayor's office nor firefighters' union opposed reopening the contract in 2007.

The Legislature created the Intergovernmental Cooperation Authority in 2004 to look at Pittsburgh's finances independent of the Act 47 team, a financial recovery team appointed by the state administration.

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