Expenditure Summary

Expenditures by Department 2024 2025 2026 Increase/ % Amended Actual Budget (Decrease) Change Budget

Expenditure Summary

Fiscal Year 2026 Expenditures

Expenditures total $693,235,672 in fiscal year 2026. The five largest divisions in fiscal year 2026, with respect to total appropriated budget, are: Department of Finance, Bureau of Police, Bureau of Fire, Bureau of Emergency Medical Services, and the Department of Human Resources and Civil Service. In total, these departments account for 70.1 percent of total expenditures in the 2026 Operating Budget. The Department of Finance’s budget is particularly large because all debt service and pension related costs are appropriated within the department’s budget. Similarly, appropriations placed in the Department of Human Resources budget include legacy citywide retiree health benefits. In addition to representing 2026 expenditures by department, the data can also be viewed by functional area. The following chart illustrates the percent of total budget represented by functional area in 2026. 2026 Spending by Division $6,180,372: 0.9% $95,682,223: 13.8% $5,605,383: 0.8% $24,122,781: 3.5% $83,820,993: 12.1%

General Government Public Safety Finance Public Works Human Resources City Controller City Council General Government General Government comprises 14 individual Departments, Bureaus, Offices, and Commissions which account for $317,604,541 or 45.8 percent of total budgeted expenditures in fiscal year 2026. Divisions falling under this category are: Office of the Mayor; Office of Management and Budget; Department of Innovation and Performance; Commission on Human Relations; Department of Finance; Department of Law; Ethics Hearing Board; Office of Municipal Investigations; Department of Human Resources and Civil Service; Department of City Planning; Department of Permits, Licenses, and Inspections; Department of Parks and Recreation; Department of Mobility and Infrastructure; and the Citizen Police Review Board. Some of these departments are administrative in function while others are responsible for the day-to-day operations and direct delivery of programs and services to city residents. Note that the Commission on Human Relations, Ethics Hearing Board, and Citizen Police Review Board have independent advisory boards.

Public Safety

The Department of Public Safety in the City of Pittsburgh is comprised of five bureaus and one office: Bureau of Administration, Bureau of Emergency Medical Services, Bureau of Police, Bureau of Fire, Bureau of Animal Care and Control, Office of Community Health and Safety. In total these budgets equate to $280,024,383 or 40.4 percent of total budgeted expenditures. Public Safety Administration ensures proper coordination across the divisions. 51

Public Works

The Department of Public Works in the City of Pittsburgh is comprised of four individual bureaus: Bureau of Administration, Bureau of Operations, Bureau of Environmental Services, and Bureau of Facilities. In total these budgets equate to $83,820,993 or 12.1 percent of total budgeted expenditures. Public Works is responsible for a breadth of City services including refuse collection, snow removal, maintenance of parks and streets, and other essential services. City Council and the Office of the City Controller The City Council budgets amount to $6,180,372 or 0.9 percent of total budgeted expenditures. The Office of the City Controller budget amounts to $5,605,383 or 0.8 percent of total budgeted expenditures. For descriptions of these government sections, please refer to “Overview of the Government of the City of Pittsburgh” section in the 2026 Budget Guide.

Expenditures by Subclass

Expenditures can be divided into two categories: personnel related and non-personnel related. Personnel related expenditures include salaries and employee benefits including healthcare, workers’ compensation benefits, pension benefits, and retiree benefits. In total these expenditures account for $503,113,297 or 72.6 percent of total expenditures budgeted in fiscal year 2026.

The subclass breakdown of total budget expenditures illustrates the proportion of the budget that is dedicated to personnel-related expenditures, professional and technical services, property services, other services, supplies, property, miscellaneous expenses, and debt service. Of the $190,122,375 budget in non-personnel related expenditures in fiscal year 2026, $78,311,662 or 41.2 percent is dedicated to repaying the principal and interest costs of issued bonds. These bonds are used to finance capital infrastructure projects throughout the City.

51 Personnel-Salaries & Wages

52 Personnel-Employee Benefits 44.6% 53 Professional & Technical Services 54 Property Services 27.9% 55 Other Services 56 Supplies 57 Property 58 Miscellaneous 3.6% 82 Debt Service 11.3% 6.8% 1.2% 2.5%

For a more detailed explanation of the subclasses please refer to the “Where Do Expenditures Go?” section in the Budget Guide section of the 2026 Operating Budget.

Five-Year Expenditure Forecast

The 2026 Operating Budget and Five-Year Plan submitted by the City highlights the Mayor's commitment to financial sustainability, improving the efficiency and effectiveness of government operations, and strengthening financial management practices. The City plans to achieve these by:

• Eliminating operating deficits in the baseline financial projections while preserving core municipal services
• Managing the City’s debt burden to provide more resources to support daily operations
• Keeping the City’s fund balance at an appropriate level to avoid the need for cash flow borrowings and provide an adequate buffer against unanticipated revenue shortfalls or expenditure increases
• Maintaining the City’s pension fund contributions at levels recommended by its actuary The 2026 Operating Budget and Five-Year Plan provides a fiscally responsible path to address legacy costs and improve the City’s long-term fiscal health by:
• Allocating an additional $280 million to the pension fund over five years beyond the state mandated minimum municipal obligation (MMO)
• Continuing efforts of responsible borrowing with the City’s debt burden totaling 11.3 percent of General Fund expenditures in 2026
• Allocating a $21.0 million in "pay-as-you-go" (PAYGO) transfer to the capital improvement plan In addition to the information outlined in the revenue and expenditure sections of the budget document, key components and assumptions incorporated into the forecast include the following:
• Salaries & Wages: OMB will continue to work with departments to identify opportunities to increase workplace productivity and implement other operational efficiencies as part of the enterprise cost management initiative.
• Employee Benefits: This category includes all health care costs for both active and retired employees, workers' compensation costs, employer mandated costs such as social security, and employer contributions to the pension fund. Health care costs are projected to rise over the course of the next few years, but the City is working to improve its overall wellness program with the goal of improving employee

health and managing costs. Pension projections incorporate initiatives related to increased pension funding and the 2018 increase in the parking tax commitment.

• Other Non-Personnel Operating Costs: Projections for this category incorporate contractually required costs that are known at this time, analyses of historical spending, and the reallocation of budgets across each department.
• Debt Service: The forecast compares known debt service schedules with estimates for anticipated future issuances to determine debt service. This helps practitioners decide whether the City will be able to responsibly issue bonds to address the City’s critical infrastructure needs.
• PAYGO: The City funds a number of capital projects through a transfer from the General Fund into the Capital Projects Fund each year. PAYGO (or “pay-as-you-go”) transfers are funds that the City spends on capital projects that may not be eligible for bond or Community Development funds. In the 2026 Capital Improvement Plan, projects funded with PAYGO are mainly focused on neighborhood improvement, economic development, and blight remediation. The forecast assumes that the City will continue to contribute PAYGO funds for capital projects consistent with Chapter 218 of the City Code, contributing $21.0 million in 2026 and a total of $25.0 million from 2027 to 2030. Most non-personnel related subclasses are projected to remain relatively flat or increase modestly throughout fiscal year 2030. Debt Service will decrease significantly in 2027.

$600,000,000

51 Personnel-Salaries & Wages

52 Personnel-Employee Benefits

53 Professional & Technical Services 54 Property Services 55 Other Services $400,000,000 56 Supplies 57 Property 58 Miscellaneous 82 Debt Service $200,000,000

The 2026 Operating Budget and Five-Year Plan achieves substantial improvements in terms of the percentage of total expenditures related to debt service. In fiscal year 2015 expenditures related to debt service reached $89,289,167. This represented 18.6 percent of total budgeted expenditures. In the 2026 Operating Budget, total planned expenditures related to debt service is $78,311,662, or 11.3 percent of the General Fund total. This trend illustrates the City’s commitment to long term financial health. The long term impact of this plan will allow the City to responsibly borrow at more favorable rates, comply with the City’s debt policy, and provide resources to invest in the City’s assets.

Debt Service

$800,000,000 20.0% $600,000,000 $400,000,000 10.0% $200,000,000 $0 0.0% a l ) a l ) a l ) a l ) a l ) a l ) a l ) e d ) e d ) e d ) te d ) ected) c tu c tu c tu c tu c tu c tu c t u c t c t c t c 2019 ( a ( a ( a ( a ( a ( a ( a o j e o j e o j e o j e ro j 2 0 2 1 2 2 2 3 2 4 2 5 ( p r ( p r ( p r ( p r (p 2 0 2 0 2 0 2 0 2 0 2 0 2 6 2 7 2 8 2 9 3 0 2 0 2 0 2 0 2 0 2 0 Budget Total Debt Service Percent of Total Expenditures