Good afternoon and welcome to Pittsburgh City Council's cable cast post agenda on the 2025 fourth quarter financial and performance report from March 25th, 2026.

For the record, we are joined today by council members Charlotte, Celonetro, and Warwick, and I'm sure other members will be joining us shortly.

I am I am really glad to be holding this.

I expect this to be the first of quarterly post agendas after each of the quarterly reports and after the ACFER and in an effort to ensure that budget season is a year-round endeavor rather than November, December endeavor for council members.

And the upside of that is that we're all meeting regularly.

Multiple departments are meeting regularly to discuss city finances.

And the downside of that is that not all council members attend that meeting.

I attend that meeting on behalf of council.

I do my best to talk to council members as a chair of finance and law, but um, but not all council members are present, and I think this can be a way to daylight to the public and to involve council members in our financial realities and future budget decisions throughout the year.

So I'm grateful to all of our invited guests.

If we want to um go down the line and each introduce ourselves and then we'll turn it over to you to get started with uh presentation.

Um Ian Fitzgerald, Deputy Director of Finance Department.

Rhea Price, Deputy Director Um and Acting Director currently of the Office of Management and Budget.

Elizabeth Sir Cone, Assistant Director of Operating and Special Revenue.

David Hutchinson, Assistant Director for Capital and Asset Management.

Thank you very much.

And acting director of OMB Price, I'll turn it over to you for your presentation.

Okay.

Um first of all, I want to apologize for my uh voice.

Um recovering from an illness, so um, I might need some cough drops and or drink some water during the presentation.

You have very capable staff with you to fill in if necessary.

I know you do.

Yeah.

Um, so uh like uh council person Strassberger said, uh, we're here to discuss the results of the fourth quarter report for 2025.

Um so I I thought I'd start with a very high-level look at where we ended the year.

Now, um what you see here are the overall unudited results of how we ended the year.

And don't try to look at anything because I'm gonna zoom in on some numbers, but you'll see I have three sets of numbers um outlined in red.

And we're going to zoom in on those numbers in a second.

Okay.

So uh here's where we ended the year.

Uh the first number that is outlined um that is $658 million, uh $386,000 and $66.

Uh, that's uh how we ended the year um in revenue collection.

Then if you go down to the $667 million, uh 25,000 667 million, 25,881 dollars.

Uh, that is how we ended the year um in expenditures.

And that very bottom number at the bottom, uh, that is what we refer to as our operating result.

Now, what that represents is simply the total revenues minus total expenditures.

Um please note that that number is negative.

So that means that we ended the year in the red.

Okay.

So we ended the year with almost a nine million dollar deficit.

Now, I wanted to start by pointing this out because now I want to do a comparison to show you this should look familiar.

This is from the five-year forecast um of the 2026 operating budget.

Uh, this is what you pass at the very end of 2025.

And um, I'm gonna zoom in on some numbers here too, but what I want you to focus on is the 2025 estimate column.

Okay.

So normally this year I think that the mayor's office and council did something different than in previous years.

So there would be estimates that would be provided in September.

And typically, uh from my memory, those estimates would typically be updated for the November budget.

From my understanding, that did not happen this year.

Okay, so but that normally does happen.

So uh that 2025 estimate that um was the same for both the September and the November budgets and the budget that you ultimately passed.

So anyway, what I want you to focus on here is the uh the total revenues that were estimated to and and the 2025 in that budget.

Now that number was 665 million uh 740,243.

Then moving down to total expenditures.

That number was about 665.5 million dollars.

And here you see the operating result.

It is very modest, but it was still a positive operating result of 163,000.

So now the reason why I wanted to point those two out was I wanted to show the variance between um what was estimated uh um in the operating budget document and uh what the um the actual showed us at the end of the year.

So as far as revenues, uh okay.

So there was about uh we ended up collecting uh a little under $8 million less than what was in the estimate in the operating budget.