(The Center Square) – Pittsburgh residents who swallowed a 20% property tax hike earlier this year will soon see a return on investment.
City Council voted Tuesday to approve $7 million in funding for vehicle fleet upgrades amid instances of broken-down ambulances and out-of-commission snow removal trucks that have left residents stranded – and angry.
The tax increase, the first in a decade for the city, covered just over one-third of the $27 million earmarked for upgrades this year. UPMC and PNC Bank are granting $5 million and $2 million, respectively, to bolster $10 million already budgeted for the task.
Councilwoman Barb Warwick, who had initially proposed a 30% hike, said during the meeting that while it’s a “wonderful thing,” it falls short of the $40 million annual investment needed to upgrade the city’s entire fleet.
“We are very grateful to have that money but also want to be very clear that it is funding we very much hope will continue, and I know that the administration very much hopes it continues,” she said.
“Basically, everything we do at the city of Pittsburgh in some way or another relies on fleet vehicles,” she added.
The deal makes good on a campaign promise from Mayor Corey O’Connor, who wants to make the city’s major non-profits – UPMC, Duquesne University, University of Pittsburgh, Highmark Health and Carnegie Mellon University – pay taxes after years of exemptions. While the grant isn’t akin to a tax payment, it’s a deal O’Connor said he would pursue.
It’s a longstanding issue with taxpayers, who feel the recent 20% increase shifts the burden onto property owners while letting non-profits avoid tens of millions in tax bills.
And the strain of the exemptions is far from over. Warwick said Tuesday that, at a minimum, the city must invest $20 million annually for the next five years to keep its fleet functional.
