Pittsburgh City Council approves
nonprofit contribution
Coalition to give $5.4 million over 2 years
July
3, 2012 12:14 am
By
Joe Smydo / Pittsburgh Post-Gazette
Pittsburgh City Council approved
legislation Monday that sets up a new round of contributions from a few dozen
nonprofit groups, but did so only after a flurry of last-minute questions and
complaints that hung up the deal for a couple of hours.
Under the agreement, the Pittsburgh
Public Service Fund -- made up of about 40 nonprofits -- collectively will
contribute an estimated $5.2 million to $5.4 million over the next two years.
The groups make the voluntary contributions because they don't pay property
taxes on their land and buildings.
Although some members said they
wanted a lot more money than $5.4 million, council gave the agreement
preliminary approval last week.
The final vote, scheduled for Monday
morning, was delayed when Councilwoman Natalia Rudiak complained that she
hadn't received a list of nonprofits that contributed to the service fund in
2010 and 2011. In addition, Ms. Rudiak amended the bill to direct city
Controller Michael Lamb to perform a study of the costs the city incurs
providing police, fire and other services to tax-exempt groups.
By the time council took up the bill
again at an afternoon meeting, the city finance department had provided the
list of contributors from 2010 and 2011. Council praised some small nonprofits,
such as the Allentown senior citizens, for giving money to the fund and
criticized others for not giving enough.
"They understand the importance
of being part of something greater than themselves," Councilman Bruce
Kraus said of the Allentown seniors.
Although University of Pittsburgh
Medical Center has made a $100 million contribution to the Pittsburgh Promise
scholarship fund, it does not contribute to the city -- something that has
repeatedly drawn council members' ire.
The 40 or so nonprofits in the
service fund are a small number of tax-exempt groups in the city. Another 10 to
20 nonprofits have negotiated separate payments in lieu of taxes that jointly
will yield the city $450,000 to $500,000 this year.
Nonprofits "are good partners,
but they could be better partners," Councilman Ricky Burgess, the finance
chairman, said.
The new agreement notwithstanding,
council President Darlene Harris said she and other members will continue
efforts to coax more money from nonprofits.
Joe Smydo: jsmydo@post-gazette.com or 412-263-1548.
First Published July 3, 2012 12:00 am
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