Pittsburgh looking for credit lines to help offset revenue losses

Pittsburgh is moving to secure lines of credit to offset tax losses that officials expect during the coronavirus pandemic’s economic shutdown.

City Council on Tuesday advanced a resolution that would authorize the Mayor’s Office to secure lines of credit “for the purpose of maintaining and supporting continuous operations during and immediately after the covid-19 pandemic.”

Tim McNulty, spokesman for Mayor Bill Peduto, said the Office of Management and Budget has yet to determine how much the city might need.

Council is expected to approve the resolution during its meeting on April 7. All members have signed on as sponsors.

Peduto last week said the city would end 2020 with a deficit for the first time in nearly 10 years. The mayor and other U.S. mayors have called on Congress for $250 billion in funding to help cities navigate the pandemic

In January, Pittsburgh’s 2020 operating budget projected a balanced $608 million in expenses and revenues with $85.8 million on reserve. The city’s main source of revenue is nearly $500 million in tax revenue, which is quickly drying up because of the economic situation, officials said.

Councilman Corey O’Connor, who introduced the resolution, described the first quarter of 2020 as a loss. He noted that the balanced budget counts revenue streams that have stalled, including about $59 million in parking, $18 million in amusement, $15 million in local services and $5 million in facility usage taxes.

“Were losing all that revenue,” O’Connor said. “Those are all things that we’re not seeing for a couple months at a time. Who knows how quickly it’s going to start up.”

He said lines of credit would help secure city finances for the future. Once negotiated, the credit lines would be subject to council approval, he added

“This is just to prepare for what that future looks like,” he said. “We hope there are local banks that can help us out with this.”