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The Public Plan : Solving Pittsburgh’s Pension Crisis

The Public Plan : Solving Pittsburgh’s Pension Crisis. Councilman Patrick Dowd Controller Michael Lamb March 2, 2010. The Challenge. Moving CMPTF from 30% to 50% funded Creating a regular revenue stream for CMPTF Avoiding a tax increase Promoting long-term economic stability

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The Public Plan : Solving Pittsburgh’s Pension Crisis

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  1. The Public Plan: Solving Pittsburgh’s Pension Crisis Councilman Patrick Dowd Controller Michael Lamb March 2, 2010

  2. The Challenge • Moving CMPTF from 30% to 50% funded • Creating a regular revenue stream for CMPTF • Avoiding a tax increase • Promoting long-term economic stability • Maintaining local control of community development options

  3. The Private Plan • Lease Parking Assets to private concessionaire for at least $300 million • Term of lease: 2011 to 2061 • Concessionaire controls rate setting and all other revenues • Concession Agreement forbids PPA from building new parking facilities

  4. Concerns with The Private Plan • Cannot capture full value for the assets and other revenues • Offers only a one-time infusion of cash • Fails to create a regular revenue stream • Decreases dramatically the role of the PPA and the regulation of parking • Simply Put: to get $300 million Pittsburgh will have to give away too much

  5. Dowd-Lamb: The Public Plan • Transfer ownership of some PPA parking garages to the CMPTF • Infuse the full value of those PPA garages into CMPTF • Increase CMPTF from 30% to 50% funded • Dedicate revenue from assets to CMPTF • PPA manages the assets and can build parking facilities in the future

  6. Advantages of the Public Plan • Transfer full value into the CMPTF and increase the fund to at least 50% of its obligation • Dedicate revenue from the assets formerly owned by the PPA to the CMPTF • Continue operation of PPA & ensure the long-term economic stability of Pittsburgh • Keep Public Assets Locally owned and operated

  7. Putting Public Plan into Action • Mayor Ravenstahl knows about & is willing to consider the Public Plan • Dowd-Lamb will present to the Mayor & City Council a “road map” for putting the Public Plan into action • Mayor, City Council & all stakeholders will weigh all options carefully

  8. The Public Plan: Solving Pittsburgh’s Pension Crisis Councilman Patrick Dowd Controller Michael Lamb March 2, 2010

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