Today the Pittsburgh City Council approved a five-year financial plan, recommending the city increase the property tax rate to offset financial problems and borrow $100 million for road, bridges and neglected infrastructure improvements. According to the Pittsburgh Tribune-Review, the Council approved the plan designed by its state-appointed financial overseers, also known as the Act 47 financial recovery coordinators, with a 7-2 vote. While several council members and Mayor Bill Peduto have voiced their opposition of a tax increase in the 2015 budget in the fall, city officials agree they need to develop a plan to recover the loss of about $7 million in tax revenue from last year's real estate tax rate decrease from 10.8 mills to 7.56 mills through cost-cutting and new revenue. The reduction was the result of Allegheny County's property reassessment. The Act 47 plan calls for the city to increase payments to city employee pensions and recommends borrowing $100 million to put toward capital improvements. It also includes the real estate tax increase in 2015.
For the full article from the Pittsburgh Tribune-Review, click here.