Pittsburgh City Council approved a new fiscal recovery plan today over the strenuous objections of unions representing police and firefighters.

By a 6-3 vote, members opted for a freshly printed blueprint under state Act 47 for distressed municipalities, with members saying that coordinators picked by Harrisburg accepted 30 of 42 changes suggested by council -- enough to rescue it from what had seemed likely defeat.

"Act 47 is a lifeboat in a sea that is turbulent, in order to keep you from drowning," said Council Finance Chairman Wiliam Peduto. "We vote today to keep this city from facing the hard reality that it faced in 2003 and 2004, when all of the warning signs were there, but elected leaders didn't take action."

Councilwoman Tonya Payne, who had said she'd oppose Act 47, thanked "the leadership of Councilman [Bruce] Kraus, and Councilwoman [Theresa] Smith, along with Mayor Luke Ravenstahl" for making the yes vote possible. "They worked with everyone, versus only working with some," she said.

Voting yes were Ricky Burgess, Mr. Kraus, Jim Motznik, Ms. Payne, Mr. Peduto and Ms. Smith.

Voting no were Patrick Dowd, Darlene Harris and Council President Doug Shields.

The vote came after introduction of a compromise version of the 300-page plan, representing some of the suggestions council made prior to an initial vote Wednesday, modified by a state-picked team of lawyers and numbers crunchers, and provided to council on May 21.

The changes boost a proposed $1,000 bonus -- in lieu of a raise -- to all city employees in 2010 to $2,000, at a cost of around $3 million, while keeping caps on raises at 2 percent in 2011 and 2012, 2.5 percent in 2013, and 3 percent in 2014.

They keep the Greenfield firehouse open, cancelling a proposal to merge it with the Hazelwood station.

They add, as options for bolstering the troubled pension fund and overall city financial health, public parking lot rate hikes or surcharges, fees on hospital admissions and college students, extension of a payroll tax to otherwise tax-exempt employers, an increase in the $52-a-year tax on people who work within the city to $145, and service or mooring/launching fees on boaters.

They ask the state to boost pension aid for paramedics, and call on the city to improve paramedic service on the North Shore to accommodate the casino and other developments,

They seek consideration of merging city and Allegheny County fleet maintenance, parks operations, computer systems and potentially other departments.

They call for pursuing recommendations in a recent report documenting race and gender inequity in the city workforce, and creating a recruitment plan to increase diversity in the city ranks, especially in public safety bureaus.

They compel the city to use software to better manage street paving, cleaning and snow removal.

They ask the city to work with the Fraternal Order of Police to create "low cost incentives" to attract and keep officers.

Those changes didn't win over police and firefighters, whose contract negotiation process is set to formally start tomorrow and who now face caps on coming pacts, which must comply with the plan.

Fraternal Order of Police Lodge 1 President Dan O'Hara told council that "530 police officers can, and most of them will, leave before the end of this next contract if it's a poor one. . . . You have police officers being killed! They still have no benefits in place. I've had to resort to fund raising to make sure their families are taken care of."

Firefighters waged a last-ditch battle to eliminate from the plan a plank that bars the city from signing contracts that limit its ability to contract out services, shift work among unions, and protect seniority rights, among other things.

"What good is the money that you're going to give these people if you don't secure their jobs?" asked firefighter Darrin Kelly. "You're not helping these people. You are standing behind and you are allowing yourselves to be manipulated by a group of people who don't share your interests."

He warned of political payback for those voting yes. "Prepare for battle. This will not be let go easily."

Mayor Luke Ravenstahl said after the vote that "we're very excited that we were able to reach a compromise and one that is financially responsible." A first step will be a Monday trip to Harrisburg to try to build support for expansion of the payroll tax to otherwise tax-exempt employers, he said.

He said he understood union consternation but didn't agree that labor got a raw deal.

"You go ask other bargaining units across the country if they would like to have a $2,000 bonus this year. Many of them would say yes," he said. "We haven't laid anybody off. We're giving them bonuses.

"We can't simply cave to every union demand that is made."