Oversight board finally gives OK to city's budget

A state oversight board Wednesday approved Pittsburgh's 2011 budget and five-year spending plan -- and secured City Council's commitment to move forward with a new financial management system.

The Intergovernmental Cooperation Authority rejected the city's initial budget in October because it included revenue from Mayor Luke Ravenstahl's parking lease plan, which council ultimately voted down.

The ICA rejected a revised budget and spending plan last month, partly because it included $20 million in what the overseers called unsubstantiated revenues from nonprofit groups. Overseers also said the plan allocated too little money to the city's languishing pension fund.

At a brief meeting Wednesday, ICA unanimously approved a $451 million budget and five-year plan that did away with the $20 million and increased pension payments -- from $46.4 million to $50 million for 2011, for example.

It was the first vote for new ICA board member Elise Roby Yanders, a North Side resident who is a vice president and wealth management adviser at Merrill Lynch. She was nominated by the state House Democrats to replace Curtis Aiken, who resigned from the board.

As the ICA meeting convened, council tentatively approved legislation authorizing up to $10 million for a financial management system that could be shared with Allegheny County as well as city and county authorities.

In an initial version of the legislation, the city committed to buying the system only if it completed the sale of the Municipal Courts Building, Downtown, to the state for $9 million. However, council removed that language from the bill before taking the preliminary vote Wednesday; a final vote is scheduled for Tuesday.

ICA Chairwoman Barbara McNees sent city officials a letter demanding that the financial management system be purchased "without any exceptions or contingencies." ICA indicated it might reject the budget and spending a plan a third time if the city didn't go along.

In her letter, Ms. McNees said the financial management system "allows for transparency, integration of payroll and HR functions, and in general, the business protocols and practices that should be found in a $500 million business" such as the city.

First published on December 9, 2010 at 12:00 am