Title
Resolution authorizing the Mayor to enter into a Revenue Sharing Services Agreement with and between LAZ Parking, Limited. This Resolution shall be known as the “Pension Compromise Plan.”
Body
Whereas, the original lease, as submitted to Council in September, was rejected by Council on October 19, 2010; and,
Whereas, the Council-Controller Plan, approved by Council, was rejected by the Parking Authority's Board of Directors on October 28, 2010; and,
Whereas, the rejection of these plans leaves the City with no legitimate means of avoiding a state takeover of the Pension Funds; and,
Whereas, the Commonwealth of Pennsylvania will take over the City of Pittsburgh's Pension funds unless the city raises its pension plan funding to 50 percent by December 31; and,
Whereas, mandatory enrollment in Pennsylvania Municipal Retirement System (“PMRS”) will cost City taxpayers an average of $120 million in annual pension payments for the next 30 years; and,
Whereas, the City can solve this problem right now by approving the Revenue Sharing Services Agreement,
Whereas, PMRS has calculated that a $220 million lump-sum contribution now, along with the additional parking tax revenues from leasing the garages, would reduce the city's annual pension obligations to an average $65 million per year for the next 30 years; and,
Whereas, PMRS data indicate that the cost of waiting until 2011 or 2014 to make the $220 million lump-sum contribution will add almost $1 billion to the bill; and,
Whereas, the Revenue Sharing Services Agreement will provide the City with the up-front cash to avoid State takeover and the increased parking tax revenue which will reduce our annual MMO payments; and,
Whereas, the City's firefighters have filed suit against the City compelling the City to make substantial tax increases in order to make the necessary $220 million contribution to the Pension Funds by years' end; and,
Whereas, LAZ Parking, Ltd. has been negotiating with members ...
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