City finance-update-4-12-11-5yr-planb
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Bill Peduto's slide presentation on city finances in April 2011. Presented within this blog posting. ...

Bill Peduto's slide presentation on city finances in April 2011. Presented within this blog posting. http://reformpittsburghnow.com/2011/04/12/pittsburgh%E2%80%99s-financial-future-part-ii/comment-page-1/#comment-578

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City finance-update-4-12-11-5yr-planb City finance-update-4-12-11-5yr-planb Presentation Transcript

  • City Finance Update Pittsburgh’s Financial Future April 12, 2011 Post Agenda Councilman William Peduto, Finance Chair
  • Recap of 2011 Operating and Capital Budget Post Agenda April 5, 2011
    • Operating Budget on target for 2011
    • Capital Budget has deficiencies due to:
      • Slow State and Federal Reimbursements
      • Unexecuted sale of the Courts Building to State
      • Need to clear old encumbrances and projects
        • As a result, may need to use a small portion of the City’s $40M “rainy day” fund balance to fund all of 2011 Capital Plan
    • Best Practice Review
      • City does some things well
      • Needs improvement on issues such as communication
      • Need for ERP Financial System
  • 2011 - 2017 Budgets 56,589,642 53,366,012 48,111,452 43,010,158 38,516,932 35,091,661 37,741,774 ENDING FUND BALANCE     - - - - (12,076,000) Reserve Fund Balance Transfer - - - - - - - Transfer to PAYGO 53,366,012 48,111,452 43,010,158 38,516,932 35,091,661 37,741,774 44,795,746 BEGINNING FUND BALANCE 3,223,630 5,254,560 5,101,294 4,493,226 3,425,271 (2,650,113) 5,022,028 OPERATING RESULT 499,869,750 491,627,790 485,646,706 476,510,774 470,320,829 466,411,213 450,087,572 EXPENDITURES 503,093,379 496,882,350 490,748,000 481,004,000 473,746,100 463,761,100 443,033,600 REVENUES 2017 2016 2015 2014 2013 2012 2011   View slide
  • Operating Budget 2011-2017
    • Dependent upon PPA PILOT $9.3M
    • Must continue to watch Healthcare and Pension Costs
    • Debt service must be properly restructured
    • Reassessment may impact RET Revenue
    • Must continually look for efficiencies and new revenue sources
    View slide
  • Revenues vs Expenditures
  • Pension Total to Pension Funding 2010-2017 $586 Million *MMO increases biennially estimated, Employee Contributions annually taken from PMRS, Additional Contribution increases– assumption are estimates and are not actuarial certified $ 82,942,976 $ 11,153,176 $ 5,000,000 $ 13,376,000 $ 53,413,800 2016-2017 $ 80,395,609 $ 10,863,609 $ 5,000,000 $ 13,376,000 $ 51,156,000 2015 $ 80,098,287 $ 10,566,287 $ 5,000,000 $ 13,376,000 $ 51,156,000 2014 $ 77,355,332 $ 10,259,332 $ 5,000,000 $ 13,376,000 $ 48,720,000 2013 $ 77,012,846 $ 9,916,846 $ 5,000,000 $ 13,376,000 $ 48,720,000 2012 $ 72,967,713 $ 9,591,713 $ 3,600,000 $ 13,376,000 $ 46,400,000 2011 $ 115,576,000 $ 9,200,000 $ 48,000,000 $ 13,376,000 $ 45,000,000 2010 Total Revenue Into Fund Employee Contributions Additional Parking Tax Dedication MMO YEAR
  • Pension & Debt
  • Capital Needs 2011-2017
    • $20-$30 Million needed annually in “City” funds, either PAYGO, Bond or combination
    • Major items include street maintenance, demolition and vehicle acquisition
    • State/federal matching, TIP projects
    • $120-$160M needed for 2012-2017
  • Capital Funding
    • Continued efficiencies in the operating budget, development of new revenue sources may allow for dedication of excess operating dollars to PAYGO
    • Act 47 Plan suggests restructuring of debt/issuance of “new” money tax exempt bonds for 2012-2017
    • Debt can be structured to correspond with long term plan
      • Just like a mortgage to fit your annual payment ability, bonds can be issued in different terms 10, 20 or 30 year payment schedules
  • Debt Service
  • Debt Cliff – Available Funds
  • Sample Debt Service The City of Pittsburgh General Obligation Bonds, Series of 2008 Series 2006C Debt Service Projection Annual Date Principal Coupon Interest Debt Service Debt Service 3/1/2009 1,254,675.00 1,254,675.00 9/1/2009 1,254,675.00 1,254,675.00 2,509,350.00 3/1/2010 1,254,675.00 1,254,675.00 9/1/2010 1,254,675.00 1,254,675.00 2,509,350.00 3/1/2011 1,254,675.00 1,254,675.00 9/1/2011 1,254,675.00 1,254,675.00 2,509,350.00 3/1/2012 1,254,675.00 1,254,675.00 9/1/2012 1,254,675.00 1,254,675.00 2,509,350.00 3/1/2013 1,254,675.00 1,254,675.00 9/1/2013 1,254,675.00 1,254,675.00 2,509,350.00 3/1/2014 1,254,675.00 1,254,675.00 9/1/2014 5,000.00 4.250% 1,254,675.00 1,259,675.00 2,514,350.00 3/1/2015 1,254,568.75 1,254,568.75 9/1/2015 5,000.00 4.250% 1,254,568.75 1,259,568.75 2,514,137.50 3/1/2016 1,254,462.50 1,254,462.50 9/1/2016 5,000.00 4.250% 1,254,462.50 1,259,462.50 2,513,925.00 3/1/2017 1,254,356.25 1,254,356.25 9/1/2017 11,905,000.00 5.250% 1,254,356.25 13,159,356.25 14,413,712.50 3/1/2018 941,850.00 941,850.00 9/1/2018 35,880,000.00 5.250% 941,850.00 36,821,850.00 37,763,700.00 3/1/2019 0.00 0.00 9/1/2019 0.00 0.00 0.00 3/1/2020 0.00 0.00 9/1/2020 0.00 0.00 0.00 3/1/2021 0.00 0.00 9/1/2021 0.00 0.00 0.00 3/1/2022 0.00 0.00 9/1/2022 0.00 0.00 0.00 3/1/2023 0.00 0.00 9/1/2023 0.00 0.00 0.00 3/1/2024 0.00 0.00 9/1/2024 0.00 0.00 0.00 3/1/2025 0.00 0.00 9/1/2025 0.00 0.00 0.00 3/1/2026 0.00 0.00 9/1/2026 0.00 0.00 0.00 Total 47,800,000.00 24,466,575.00 72,266,575.00 72,266,575.00
  • Actions needed for 2011-2017
    • Capital budget. Analysis of various funding scenarios.
    • Action on Council-Controller parking for plan.
    • Cost controls. We have done a good job of keeping down costs, but we need to create more efficiencies.
    • Revenue enhancements. Look for new revenue without increasing real estate or earned income taxes.
    • State action. Changes in State law for pensions, non-profit payments, reassessment, etc..