1. CITY of PITTSBURGH FISCAL OUTLOOK Councilman William Peduto, Finance Chair Pittsburgh City Council December 12, 2008

2. Operating Result -$17,590,523

3. Operating Result +$17,752,159

4. Operating Result +$36,728,395

5. Operating Result +$22,680,253

6. Operating Result +$19,234,435

7. Operating Result +$3,440,087

10. Deficit Returns

11. Flat Lines Fund Balance Depleted

12. PAYGO Gone?

13. PAYGO Capital Budget Funding gone in 2012 Structural Deficit Returns in 2014

14. PENSION CRISIS

19. Distribution of Liability -$524 Million $93,827 per member $34,378 per member

20. According to University of Pittsburghs Chris Briem Police Fund negative by March 2012 – Fire Negative by June 2014

21. 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 states fixed pool of revenue Low interest rates that safe bonds are offering may push down future expected returns and push up required contribution levels

22. 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

23. 2009 – 2014 New 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

24. 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 Mayors signature