PITTSBURGH (KDKA) – Mayor Bill Peduto has proposed a real estate millage rate hike to fix a “miscalculation” by the previous administration.

There are a number of cost-saving measures in the 2015 budget proposal that was sent to the Intergovernmental Cooperation Authority today.

One example is the elimination of 75 unfilled positions.

But, the proposed hike in millage is part of a plan to plug a $35 million hole caused by what he called a “miscalculation” by the Ravenstahl Administration.

Under the mayor’s proposal, millage would increase by 0.5 percent. For a homeowner with a house assessed at $100,000, the increase would amount to about $40.

The administration claims without restoring the millage, 75 police officers would have to be cut, or five fire stations would have to close, or planning, building inspection and Animal Control would have to be eliminated, or Public Works would have to be reduced by 20 percent.

“There was a miscalculation that was done by the previous administration. The real estate tax millage was reduced too much. The city is now on an annual basis going to have to pick up the additional cost through either reductions in police, reductions in Public Works or increases somewhere else,” Peduto said.

City Council, which has previously been reluctant to raise taxes, will now review the mayor’s proposal.

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