CITY of PITTSBURGH FISCAL OUTLOOK Councilman William Peduto, Finance Chair Pittsburgh City Council...
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Transcript of CITY of PITTSBURGH FISCAL OUTLOOK Councilman William Peduto, Finance Chair Pittsburgh City Council...
CITY of PITTSBURGHCITY of PITTSBURGH
FISCAL OUTLOOKFISCAL OUTLOOK
Councilman William Peduto, Finance ChairCouncilman William Peduto, Finance Chair
Pittsburgh City CouncilPittsburgh City Council
December 12, 2008December 12, 2008
354,729,318372,319,841
$14,592,430
-
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
400,000,000
REVENUES EXPENDITURES Fund Balance
REVENUES vs EXPENDITURES 2004
Operating Result
-$17,590,523
414,384,978396,632,819
38,131,791
-
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
400,000,000
450,000,000
REVENUES EXPENDITURES Fund Balance
2005 Revenues vs Expenditures
Operating Result
+$17,752,159
437,674,708400,946,313
80,574,118
-
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
400,000,000
450,000,000
REVENUES EXPENDITURES Fund Balance
2006 Revenue - Expenditures - Fund Balance
Operating Result
+$36,728,395
448,337,860425,657,607
89,530,372
-
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
400,000,000
450,000,000
REVENUES EXPENDITURES Fund Balance
2007 Revenue - Expenditures - Fund Balance
Operating Result
+$22,680,253
435,901,773416,667,338
20,833,367
-
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
400,000,000
450,000,000
REVENUES EXPENDITURES Fund Balance
2008 Revenues - Expenditures - Fund Balance
Operating Result
+$19,234,435
441,416,100 437,976,013
24,273,454
-
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
400,000,000
450,000,000
REVENUES EXPENDITURES Fund Balance
2009 Revenue - Expenditures - Fund Balance
Operating Result
+$3,440,087
2004-09 Revenue vs Expenditures
320,000,000
340,000,000
360,000,000
380,000,000
400,000,000
420,000,000
440,000,000
460,000,000
Revenue 354,729,318 414,384,978 437,674,708 448,337,860 435,901,773 441,416,100
Expenditures 372,319,841 396,632,819 400,946,313 425,657,607 416,667,338 437,976,013
2004 2005 2006 2007 2008 2009
2004-2009 Fund Balance
$14,592,430
38,131,791
89,530,372
24,273,454
20,833,367
80,574,118
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
$100,000,000
Fund Balance $14,592,430 38,131,791 80,574,118 89,530,372 20,833,367 24,273,454
2004 2005 2006 2007 2008 2009
2004-2014 Revenue vs Expenditures
300,000,000
320,000,000
340,000,000
360,000,000
380,000,000
400,000,000
420,000,000
440,000,000
460,000,000
480,000,000
500,000,000
Revenue 354,729,318 414,384,978 437,674,708 448,337,860 435,901,773 441,416,100 441,081,100 448,868,100 452,837,100 458,100,100 464,971,602
Expenditures 372,319,841 396,632,819 400,946,313 425,657,607 416,667,338 437,976,013 441,012,215 448,687,177 452,763,935 457,966,104 488,510,596
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Deficit Returns
Fund Balance 2004-2014
$14,592,430
38,131,791
(23,538,994)
89,530,372
80,574,118
24,730,393
24,596,397
24,523,262
24,342,339
24,273,454
20,833,367
$(40,000,000)
$(20,000,000)
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Flat Lines
Fund Balance Depleted
6,000,000
18,318,500
26,887,280
25,000,000 24,590,013
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
2007 2008 2009 2010 2011 2012 2013
PAY AS YOU GO CAPITAL BUDGET FUNDING
? ?
PAYGO Gone?
Estimate Estimate Estimate Estimate Estimate Estimate Estimate 2008 2009 2010 2011 2012 2013 2014
REVENUES 435,901,773 441,416,100 441,081,100 448,868,100 452,837,100 458,100,100 464,971,602 EXPENDITURES 416,667,338 437,976,013 441,012,215 448,687,177 452,763,935 457,966,104 488,510,596
Fund Balance 20,833,367 24,273,454 24,342,339 24,523,262 24,596,397 24,730,393 (23,538,994)
Capital Reserve (PAYGO) 18,318,500 26,887,280 25,000,000 24,590,013 0 0 0
Debt Reserve (Defeasance) 45,370,000 46,731,100 44,005,314 37,106,492 23,230,968 -
84,521,867 97,891,834 93,347,653 86,219,767 47,827,365 24,730,393
Assuming a 1.5% increase in Dept
Expenditures +Debt Service increases $23.5
MillionStructural Deficit
Returns
PAYGO Funds exhausted
Refinance, use fund balance or increase
Revenue
PAYGO Capital Budget Funding gone in 2012
Structural Deficit Returns in 2014
PENSION CRISIS
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
Fund Assets Fund Liabilities
2003 Pension
$312,471,000
$765,764,000
-$453,492,000
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
Fund Assets Fund Liabilities
2005 Pension
$373,608,000
$843,383,000
-$469,775,000
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
Fund Assets Fund Liabilities
2007 Pension
$375,368,000
-$523,880,000
$889,248,000
$375,368$373,608$312,471
$899,248
$843,383
$765,764
$(523,880)$(469,775)$(453,293)
$(600,000)
$(400,000)
$(200,000)
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
2003 2005 2007
UNFUNDED LIABILITY
FUND LIABILITY
FUND ASSETS
Distribution of LiabilityDistribution of Liability
MUNICIPAL23%
($119.6 Million)
($404.3 Million)
3,479 Members
Police & Fire77%
4,309 Members
-$524 Million-$524 Million$93,827 per
member
$34,378 per member
Pension Funding by Fund
-100,000,000
-50,000,000
0
50,000,000
100,000,000
150,000,000
200,000,000
Dec-0
7
Mar
-08
Jun-
08
Sep-0
8
Dec-0
8
Mar
-09
Jun-
09
Sep-0
9
Dec-0
9
Mar
-10
Jun-
10
Sep-1
0
Dec-1
0
Mar
-11
Jun-
11
Sep-1
1
Dec-1
1
Mar
-12
Jun-
12
Sep-1
2
Dec-1
2
Mar
-13
Jun-
13
Sep-1
3
Dec-1
3
Mar
-14
Jun-
14
Sep-1
4
Dec-1
4
POLICE Fund
FIRE Fund
Municipal Fund
According to University of Pittsburgh’s Chris BriemAccording to University of Pittsburgh’s Chris Briem
Police Fund negative by March 2012 – Fire Negative by June 2014Police Fund negative by March 2012 – Fire Negative by June 2014
The Pension Problem
• The economic market may remain flat for the foreseeable future
• State contributions to pension fund may decrease as more municipalities start to draw on the state’s fixed pool of revenue
• Low interest rates that safe bonds are offering may push down future expected returns and push up required contribution levels
The Future
• Pay as you Go Capital Ends – 2011
• Reserve Plans Depleted – 2013
• Deficit Spending Returns – 2013
• Police Pension Funds Depleted – 2011
• Fire Pension Funds Depleted - 2014
2009 – 2014New 5-Year Plan to Solvency
• Restructure City Government
• Statewide Pension Reform
• Statewide Municipal Healthcare
• Regional Government Consolidation
• Fair Payments In Lieu Of Taxes
• Regional Revenue Sharing
Next Steps
• Now - Council Budget Director meets with Mayor's Budget Director, Controller's Representative, Act 47 and Oversight Board to review Act 47 initial draft
• January ‘09 - Act 47 submits initial plan to Council. Council begins full budget hearings on the five year plan
• January ’09 – February ’09 -Televised budget hearings and public hearings
• March ’09 - Council debates recommendations to five year plan and approves a series of amendments to the plan by March 25th
• April ’09 - Act 47 submits final plan to Council• May ’09 - Council votes on the plan• June ’09 – Plan is ready for Mayor’s signature