The Public Plan: Solving Pittsburgh’s Pension Crisis

Councilman Patrick DowdController Michael LambMarch 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

•Maintaining local control of community development options

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

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

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

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

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

The Public Plan: Solving Pittsburgh’s Pension Crisis

Councilman Patrick DowdController Michael LambMarch 2, 2010