The budget saga on Grant Street continues. As Pittsburgh City Council tosses around the idea of tax hikes, the city controller said they are limited.

City council members said they are weighing all options to try to get taxes as low as possible and cut spending as well. According to the city controller, there is only so much they can do to raise taxes right now.

City Controller Rachael Heisler says the council can only add a 2% tax increase. According to her, this was to prevent political decisions over financial ones. City Council President Daniel Lavelle said council is in talks with the law department about what they can do.

"What it actually says is, 'good policy suggests that you don't do this,' but we are in trying times," Lavelle said.

He called for departments to make 5% cut proposals by Friday. He is not sure yet what that could do to any tax increase. Right now, everything is on the table.

"I think there is a good majority of members who are not going to be willing to raise taxes unless we tighten our own belts first," Lavelle said.

Heisler points to the hiring of 200 additional positions since 2022, contributing to the financial hardships. Deputy Mayor Jake Pawlak said that's putting the cause in the wrong place. He said the biggest challenge is expenses growing at 3% a year while revenues grow at 1%.

"Can we find ways to help provide them a larger margin for error to increase their comfort? Sure. Does it need to be a 30 percent change in real estate taxes? I don't think so," Pawlak said.

A constant challenge in growing revenue is the common level ratio. As the state lowers it, commercial property values go down, which means less tax income. Those make up 25% of the city's taxes.

"I believe we should be reassessing every two to three years. We haven't, and unfortunately, the state keeps lowering the common level ratio," Lavelle said.

According to Lavelle, the council will have a first vote on Dec. 18. The first public hearing will be on Dec. 20.