Title
Resolution authorizing the Mayor, the Director of the Office of Management and Budget, and the Director of Finance to, on behalf of the City of Pittsburgh, take appropriate and necessary actions to negotiate and secure lines of credit for the purpose of maintaining and supporting continuous operations during and immediately after the COVID-19 pandemic.
Body
WHEREAS, in line with City of Pittsburgh Code §113.03 and the Pennsylvania Emergency Management Services Code, 35 Pa. C.S. §§7101 et seq., on March 13, 2020, the Mayor of the City of Pittsburgh issued a Declaration of Emergency in response to the COVID-19 pandemic; and
WHEREAS, the City of Pittsburgh is obligated - to the greatest degree practicable - to maintain continuous operations and delivery of municipal services during the COVID-19 pandemic; and
WHEREAS, the uninterrupted provision of municipal services is integral to coordinated, multi-faceted public health efforts to limit, contain, and combat the spread of the COVID-19 pandemic; and
WHEREAS, it’s incumbent upon the City of Pittsburgh to preserve its fiscal state during and immediately after the COVID-19 pandemic to ensure continuous operations and delivery of services and thus must seek to finance and / or defray certain operating expenditures; and
WHEREAS, according to the City of Pittsburgh’s 2020 Operating Budget, personnel-related expenditures including salaries and employee benefits such as healthcare, workers’ compensation benefits, pension benefits, and retiree benefits that reflect a municipal workforce of hundreds of public sector employees account for $448,315,663, which is almost 74% of total expenditures for which the City of Pittsburgh has budgeted for 2020; and
WHEREAS, the pandemic has had financially-devastating effects on both the public and private sector through the combination of loss in consumer spending, and the implementation of necessary social distancing measures; and
WHEREAS, the COVID-19 pandemic will severely limit the ability of municipalities to meet their budgetary and fiscal obligations; and,
WHEREAS, the Council of the City of Pittsburgh believes that it may become necessary over the next three to four months to stabilize the City of Pittsburgh’s Operating Budget with the intent of meeting all of its budgetary obligations and preserving its current financial position through the use of lines of credit or other available financial vehicles to fight the COVID-19 pandemic and protect the citizens of Pittsburgh.
NOW, THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF PITTSBURGH:
SECTION 1. PURPOSE
Resolution authorizing the Mayor, the Director of the Office of Management and Budget, and the Director of Finance to, on behalf of the City of Pittsburgh, take appropriate and necessary actions to negotiate and secure lines of credit for the purpose of maintaining and supporting continuous operations during and immediately after the COVID-19 pandemic.
1. Preference shall be given to local lending and financial institutions during consideration if possible.
B. This measure is necessary for the preservation of public peace, health, and safety and for furthering the public’s general welfare while the City of Pittsburgh deals with the COVID-19 pandemic.
C. The City of Pittsburgh may use these funds to meet all necessary fiscal obligations, as well as to preserve its current fiscal position as it relates to the 2020 Operating Budget.
SECTION 2. REPORT TO COUNCIL
A. The Mayor and the Director of the Office of Management and Budget shall notify City Council by means of official communication of any proposed fiscal actions related to securing lines of credit authorized by this Resolution.
B. This communication shall be transmitted to and filed with the City Clerk.
SECTION 3. AUTHORIZATION
A. Final authorization by City Council shall be necessary to approve the terms and conditions of any agreement to secure lines of credit.
B. City Council shall provide said authorization by way of resolution.
SECTION 4. EFFECTIVE DATE
A. This Resolution shall take effect immediately upon signature by the Mayor.