City reports $7.1M surplus amid mixed revenue performance for 2024

In the bustling chambers of Pittsburgh City Hall, council members gathered to dissect the city’s financial performance, revealing a complex picture of revenue and expenditure. The meeting highlighted a significant surplus, with the city bringing in $7.1 million more than it spent on a Generally Accepted Accounting Principles (GAAP) basis. This figure, however, masks deeper trends in the city’s financial health.

City officials reported a total revenue collection of $703.6 million against expenditures of $699.7 million for the year, excluding transfers to other funds. Notably, the city’s investment earnings soared to an impressive $28 million, a figure that is unlikely to be replicated in the coming year, according to Treasurer Gula and her team, who have been credited with exceptional management of the fund balance.

Despite these bright spots, concerns lingered over specific revenue streams. The city’s deed transfer tax, the highest in the nation at 5%, fell short of budget expectations by $11.2 million, finishing the year at $47.9 million—down from a record high of $65.4 million. Real estate revenues also dipped, totaling $143.4 million, which was $8.2 million under budget and a decrease from previous years.

Local services tax collections remained stable, with $13.5 million in 2023 and $13.7 million in 2024, although both figures were under budget. Payroll preparation taxes showed a slight increase, reflecting a stable job market, yet job creation continues to lag behind expectations.

As the council members wrapped up their discussions, the financial report painted a picture of cautious optimism. While the city has rebounded in some areas post-pandemic, the challenges in real estate and job creation remain pressing issues that will require ongoing attention and strategic planning in the months ahead.