Public safety could receive 42% of a budget that grows 1.7% while revenue falls.

Mayor Corey O’Connor’s 2027 operating budget arrived at city council 1.7% higher than this year’s expenses, and paid for, in part, by spending $28.6 million from the city’s reserve fund.

Sheri Rolewski, assistant director of the City Council Budget Office, said during a Nov. 10 council budget hearing that 2026 is on track to finish $6.5 million under budget, avoiding a planned reserve fund draw this year.

Falling revenue and increasing costs outside of the city’s control are contributing to the squeeze.

“The deficit is not one that we can cut our way out of, at least not without cutting core city services,” Council Budget Director Kiersten Walmsley said.

“With the city’s aging assets, upkeep continues to be an issue as the need for maintenance is on the rise,” said Rolewski. “We need to be mindful that the costs associated with those fixes are also on the rise.” She added that the same will be true for the cost of gasoline and diesel.

The Mayor’s budget dedicates the largest share of spending on public safety at 42%. That money includes positions and programming previously funded by the Stop the Violence Trust Fund. The budget assumes a 0% raise for police, whose bargaining agreement expired last December. Rolewski said the city does expect a new agreement with a salary increase.

The proposed $145 million capital budget includes $23.8 million set aside for street resurfacing and $20.3 million for the fleet.

While partnerships with large nonprofits like Highmark Health and the University of Pittsburgh Medical Center will cover most of the fleet, the administration plans to take out bonds for most of the funding of capital projects.

“Approving this budget is essentially approving the city going out for bond funding next year,” Walmsley said. Official approval for taking on new debt, however, would require separate legislative action by council next year.