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All public inquiries about the status of present programs and initiatives should be requested in writing and include your name, address and telephone number where you can be reached. Correspondence should be addressed to:
Pittsburgh’s Intergovernmental Cooperation Authority
515 Court Place
Suite 400
Pittsburgh, PA 15219
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Letter to Mayor Ravenstahl Confirming 2012 Budget Approval |
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Jan 24, 2012 |
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Download here (PDF file) |
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ICA Quarterly Meeting Schedule for 2012 |
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Jan 17, 2012 |
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NOTICE OF 2012 PUBLIC MEETING DATES
Pursuant to the provisions of the Sunshine Act Open Meeting Law, 1998, October 15 P.L. 729, No. 93 §1, notice is hereby given that regular quarterly meetings of the Intergovernmental Cooperation Authority for Cities of the Second Class have been tentatively scheduled for 2012 on Friday, March 30; Friday, June 29; Friday, September 28; and Friday, December 28. Each meeting shall commence at 9:00 a.m., or at an adjusted time and advertised in advance of each quarterly meeting (Meeting locations, quarterly or other special meeting times set by the ICA Board will be published and updated in advance of each meeting and are subject to change.)
Henry Sciortino
Executive Director
(01-13-12)
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Letter of January 11, 2012 to Mayor Luke Ravenstahl and City Officials Regarding the Intergovernmental Cooperation Authority’s Continued Disapproval of 2012 Budget and Proposed Financial Plan, and Restrictive Conditions Related to this Status |
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Jan 12, 2012 |
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View the letter (PDF file) |
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Joint Statement from ICA and on Behalf of the City of Pittsburgh and Act 47 Coordinator |
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Jan 06, 2012 |
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Today, Pittsburgh’s Intergovernmental Cooperation Authority (ICA) conducted a productive working session with members of the Act 47 team and City of Pittsburgh representatives to discuss the unmet conditions and issues necessary to be resolved in order for the City to be in compliance with its adopted Amended Recovery Plan, and for ICA’s approval of the City’s 2012 operating budget and corresponding five-year plan.
On December 23, 2011, the ICA rescinded the City’s 2012 operating budget because the City did not meet certain conditions required by the financial oversight authorities necessary for budget approval. Today’s preliminary meeting was intended to assist the City in solving these outstanding matters.
Among matters discussed were:
The establishment of an OPEB (other post-employment benefits) Trust Fund to address the unfunded liability for police and fire retiree health care costs;
- Creating a process that the Administration, City Council and Controller agree on that will effectively address prioritization of capital projects and related spending required. The goal of this process is to allow elected officials and the public to be able to identify the highest priority projects being funded by capital dollars, and to be accountable for such projects in a cost-effective and timely manner;
- Modifications to the 2012 City budget that were previously made by City Council, but not approved by the ICA;
- Status of the required 2011 Pension contribution;
- Status of the agreement with the non-profits regarded budget payments to the City; and,
- Complete integration of these matters and related processes into the new financial management system currently under construction.
This group engaged in a productive session aimed at resolving the discrepancies necessary to reach budget approval. Upon completion of the meeting, the group was confident that the matters discussed will be addressed and resolved in order to fulfill the requirements of the City’s Amended Recovery Plan and financial oversight authorities. The ICA and City will continue to work closely together to reach budget approval.
Participants included: members of the Act 47 team, Chair of City Council’s Finance Committee Ricky Burgess and Council Member Patrick Dowd, City Controller Michael Lamb and members of his staff, members of the City’s Finance Department, ICA staff and Board Members Barbara McNees, Elise Roby Yanders and Ann Dugan, representatives of City Council’s budget staff and Council President Darlene Harris, Council Members Natalia Rudiak and Bill Peduto. |
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ICA Update |
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Dec 31, 2011 |
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A summary of events, matters, and discussion related to the ICA’s financial oversight of the City of Pittsburgh. Download the PDF version
Disapproval of 2012 City of Pittsburgh Budget
The ICA conditionally approved the 2012 City budget on October 19,2011 as a result of the budget amendment letter submitted by the City of Pittsburgh, also dated October 19, agreeing to the conditions set forth by the ICA. To date the conditions have not been met nor has the City provided requested information regarding critical labor matters, proposed debt issuance, the establishment of required Trust Funds, and other matters central to the fiscal stability of the City.
Additionally, during the week of December 19, 2011, Pittsburgh City Council amended the ICA approved 2012 budget without prior written consent of the ICA as mandated by the Intergovernmental Cooperation Agreement, (Agreement) between the ICA and the City. The changes legislated by Council to the conditionally approved budget constitute an unapproved variance as defined in the Agreement. As a result, a letter dated December 23, 2011, written by the General Counsel for the ICA was hand delivered to the Mayor and President of Council. The letter notified the City that the conditional budget approval rendered by the ICA on October 19 2011 is rescinded.
Financial Management System
The City expects to go ‘live’ onto the County of Allegheny financial management system on January 17, 2012 with the non-payroll portion of the system. The City does not expect to compete the conversion of the payroll portion of the system until January 2013. This remains a critical concern of the ICA in that payroll conversion allows the City to cancel its contract with an outside payroll service producing an annual savings of more than $700,000 and allows for tighter controls on overtime spending, and more effective use of alternative or modified duty programs under the banner of workers compensation reform.
Agreement with Non-Profits
To our knowledge, City officials have yet to initiate discussions with the non-profits regarding the budgeted payments to the City from the non-profits.
Proposed Debt Issuance by the City
Although the City has hired a financial advisor and selected an underwriter, the City has not provided any information regarding these selections, or any detail necessary to evaluate the impact of any debt issuance.
Labor Matters
The ICA has asked the City to provide information regarding the status of various collective bargaining matters, including but not
limited to arbitration matters with police and fire. The City has not yet responded.
Compliance with the Act 47 Amended Recovery Plan
As required by the conditions set forth by the ICA for the 2012 budget ,the City has not completed a number of required elements found in the Amended Recovery Plan adopted by the City on June 30,2009. |
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Letter of December 23, 2011 to Mayor Luke Ravenstahl and City Officials Advising on the Intergovernmental Cooperation Authority’s Disapproval of 2012 Budget and Proposed Financial Plan |
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Dec 23, 2011 |
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The ICA Letter to Mayor Ravenstahl has been posted. (PDF file) |
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Oversight Authority Awards Accounting Project to Help City Prepare for Conversion to New Financial Management System |
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Jul 05, 2011 |
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The Board of Pittsburgh’s Intergovernmental Cooperation Authority (ICA) today announced that it awarded a contract for professional services to the Pittsburgh-based accounting firm of Gleason & Associates to conduct a comprehensive review of current accounts, funds, policies and procedures used by the City of Pittsburgh in an effort to help expedite the City’s process for its conversion to a new financial management system being shared with Allegheny County.
The accounting firm has been authorized to commence and complete its work on this special project at a cost not to exceed $35,000. The ICA authorized this project through a request for proposal that was produced in collaboration with the City, City Council, the City Controller, and the Act 47 coordinator. The RFP was issued at the ICA’s June 16 public meeting. This process will include a review of the City’s budget, including old capital accounts, to determine any unspent funds that can be directed to new projects.
As a next step, the ICA will convene a 2011 budget reconciliation meeting to be attended by the City’s Administration, City Council, the Controller, Act 47, the City auditor, and the accounting firm.
ICA’s oversight role, mandated by the Commonwealth of Pennsylvania, is to support the City of Pittsburgh’s efforts to reach sustainable financial stability. |
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