PITTSBURGH -- After working around the clock to finish negotiating changes to the city's proposed financial recovery plan, Pittsburgh City Council passed the amended Act 47 proposal by a 6-3 vote Tuesday.

By all accounts, it was a tough decision. Councilwoman Theresa Smith -- who voted for the plan -- said they "agonized over this" and tried to get more for unions, especially police, and she feels they let them down.

"I think this deal is a fair deal for the members of the unions, as well as the taxpayers," Mayor Luke Ravenstahl said. "We have to balance that. We can't simply cave to every union demand that is made."

Channel 4 Action News' Bob Mayo tweeted play-by-play updates from today's council meeting. Scroll down to read his tweets.

In previous meetings, the council voted for a series of amendments which the state's Act 47 team agreed to -- such as a $2,000 bonus for city employees in 2010 instead of a 2.5 percent raise. After that, employees would receive pay increases of 2 percent to 3 percent.

The revised plan also calls for increasing the EMS tax to $145 a year -- up from $52 a year -- and applying a 0.55 percent payroll tax to nonprofits that operate in the city. Both of those moves require approval from the state Legislature.

"You go ask other bargaining units across this country if they would like to have a $2,000 bonus this year, and many of them would say, 'Yes.' In fact, they'd probably say, 'I just wish I had my job,'" Ravenstahl said.

"You're going to have a lack of firemen. You're going to have a lack of policemen on your streets," said Dan O'Hara, president of Fraternal Order of Police Fort Pitt Lodge No. 1. "I'm going to look extremely tired. I won't be the president of this union in two to three years because I will be forced to work double shifts."

WTAE's news exchange partners at the Pittsburgh Tribune-Review reported that the proposal also calls for new fees and surcharges for college students, hospital patients and parkers to generate money for the city's faltering pension fund. However, it doesn't outline specific amounts for those fees.

Other changes and amendments on the table include delaying the closing of a fire station in Greenfield, applying a payroll tax to nonprofits operating in the city and merge some city departments, like payroll, with Allegheny County.

"Will it solve all of our problems? No," said Councilman Bill Peduto, who chairs the council's finance committee. "But it will allow us to keep our head above water for the next five years."

Ravenstahl had urged City Council to approve the plan, which recommends tax increases, staffing cuts and stunted police and fire wages, because he said it "gives us the blueprint" to continue Pittsburgh's financial recovery over the next five years.

Ravenstahl pledged that he would not raise taxes on Pittsburgh residents, even though that option was included in the state's original Act 47 proposal.

Councilman Jim Motznik, who voted in favor of the plan, blamed mayors before the late Bob O'Connor who, he said, "ran the city into the ground" and "spent money unwisely."

"No one fought the original Act 47 plan or this amendment harder than I did," said Motznik, who will leave council at the end of his term to become a district judge.

Council members Patrick Dowd, Darlene Harris and President Doug Shields cast the three "no" votes.

Dowd issued the following statement:

"I did not vote for the amended Act 47 Plan because it perpetuates the very problems that have long caused the city’s financial distress. This is not a plan to restore financial health and sovereignty to Pittsburgh. It is, rather, another 5 years – with a near-certain 5-year extension beyond that – in which financial distress is prolonged and self governance surrendered. Our current and potentially indefinite status as a distressed City will hobble our efforts at regional dialogue and intergovernmental cooperation with the county and neighboring municipalities."

Union contracts for a lot of city employees are up this year. Council's approval and Ravenstahl's signature on the new Act 47 plan ensures that it will cover those upcoming labor negotiations.

"What good is having a raise when you don't have the job security that protects it? That's what this is," said firefighter Darrin Kelly, who's also on the Allegheny County Labor Council. "We're not talking about money. We're talking about security for our family."

The city is completing its first five-year recovery plan that was crafted by a state team in 2004 after the city was declared a distressed municipality. Pittsburgh is now in the black but has a pension fund nearly $650 million short.

The plan says that if the city doesn't take the recommended steps, it will again start spending more than it's taking in -- with $7 million to $10 million a year in deficit spending eating into the city's cash reserves.

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Tweeting The City Council Meeting -

Kraus: lots of late nights and back and forth. No one can accuse council of not doing job. Will vote yes on plan today.

Burgess: says plan is fiscally much the same. Praises Krause, Smith. Thanks Peduto.

Shields: hole in pension fund is what will "burn house down".

Shields: not sure city can even levy tax on non profits. Wishes could go to court on taxing suburbanites. Will into legis to try.

Shields: the state DCED secretary and the Act 47 team blinked. (Even so) you can vote for it/against it, doesn't deal structrual problems.

Shields: when Act 47 team realized if they didn't give council concessions, they'd have a 'no' vote. This is yet another political bandaid.

Shields: won't begrudge any member their position; this was bad deal from start. At end of 5 years, back where we started.

Harris: can't vote for this plan today. I'm not about to raise taxes on taxpayers of city of Pittsburgh.

Payne: Doesn't like Act 47 because she's a union person. Says last week's vote gave up council's power.

Peduto: Am I happy with everything in here? Of course not. Thanks Act 47 team for being amenable to changes. Asks colleagues to approve.

(Read the rest on Bob Mayo's Twitter page...)

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