Peduto outlines priorities in bid for second term

Pittsburgh Mayor Bill Peduto said he needs at least another four years — possibly eight — to finish what he started.

“I have a hard time thinking we're at halftime,“ he said. “So much of the first couple of years was just building the structure around the changes that we want to see.”

Peduto kicked off his 2017 re-election bid Thursday. In an interview with the Tribune-Review, he laid out some of his financial and policy goals if he wins a second term:

• Lobby state government to change the way employee pensions are funded, easing the city's obligations;

• Increase money to repave streets and improve city buildings, parks and playgrounds;

• Use a $40 million decrease in the city's annual debt payments starting in 2019 to make infrastructure improvements and reduce the city's $1.2 billion employee pension liability;

• Establish a fund to help parents provide a preschool education for all city children;

• Create an affordable housing trust fund to subsidize housing for the poor.

More broadly, he said he also envisions a network of connected bicycle lanes that permits residents to opt out of car ownership and bike from one neighborhood to another. He acknowledged that building bike lanes — including one proposed for Fort Pitt Boulevard that would link Point State Park and the Great Allegheny Passage — is among his administration's most-often criticized initiatives.

“It's maybe sometimes controversial, but people know it's what I believe,” he said.

Legislation creating the affordable housing trust fund requires the city to set aside $10 million a year. City Council voted to approve the bill preliminarily this week, but it has yet to find a funding source.

Peduto said he supports a 1 percent increase in a tax on Pittsburgh real estate sales to support the trust fund and preschool proposals.

The real estate transfer tax is 4 percent. The city levies 2 percent; Pittsburgh Public Schools and the state each levy 1 percent. Property buyers and sellers typically split the cost.

The Realtors Association of Greater Pittsburgh opposes the increase, saying it would be the highest in the state and discourage homeownership.

Peduto, who has sought a long-term financial contribution to the city from large nonprofits such as UPMC since he took office, said he is close to finalizing a deal. He said that revenue, too, would provide funding for the preschool and affordable housing initiatives.

Peduto's supporters, who include former critics and political opponents, credit him with pumping cash into employee pension funds and attempting to change a political machine culture.

“He's laid a foundation for dramatic change,” said Councilman Ricky Burgess of North Point Breeze, a former political opponent who has benefitted from Peduto's support of housing and economic development projects in East End neighborhoods. “The real measure will come in Peduto's next term.”

Ralph Sicuro, president of International Association of Firefighters Local 1, which supported Peduto's opponent in the 2013 Democratic primary, praised the mayor for repairing dilapidated fire stations and increasing hiring.

“We started off at a low point between our organization and the administration,” Sicuro said. “Our relationship has been in a constant rise since that time.”

The Fraternal Order of Police Fort Pitt Lodge 1 has been one of Peduto's biggest critics, contending his administration has used state financial oversight regulations to hold back raises and better benefits for officers.

Peduto said he has “been working in earnest” through contract negotiations with the FOP.

“The mayor's been very professional, courteous and nice, but no results,” union President Robert Swartzwelder said.

Peduto said he has no plans to run for higher office after his tenure as mayor ends.

“I would say that ideally I'm going to run for office again, and if the voters elect me, I would consider running for a third term. It may be time after that to look to do my life's work.”

That could include teaching, working in the nonprofit sector or in a position working with cities on the local or international level. Whatever happens, he said, he hopes to remain in Pittsburgh.

“I'm at the top of the mountain,” he said. “This is my dream job.”

Bob Bauder is a Tribune-Review staff writer. Reach him at 412-765-2312 or bbauder@tribweb.com.