Resolution 040706

..Title Approving a Revised Five Year Financial Plan for the City of Philadelphia covering Fiscal Years 2005 through 2009, subject to certain terms and conditions. ..Body WHEREAS, On March 18, 2004, the Mayor submitted to Council a Revised Five Year Financial Plan for the City of Philadelphia covering Fiscal Years 2005 through 2009 ("Plan"); and WHEREAS, On May 19, 2004, the Mayor submitted to Council proposed amendments to the Plan that primarily addressed the Mayor's decision to forego the annual $18 million payment from the Philadelphia Gas Works ("PGW"), and to delay until Fiscal Year 2009 PGW's repayment of the City's $45 million loan to PGW; and WHEREAS, It is the intent of this Resolution to provide Council's approval to the Plan, with the amendments submitted by the Mayor on May 19, 2004, provided the Mayor further amends the Plan in accordance with the provisions of this Resolution prior to its submission to the Pennsylvania Intergovernmental Cooperation Authority ("PICA"); now, therefore, RESOLVED BY THE COUNCIL OF THE CITY OF PHILADELPHIA THAT Council hereby approves the Five-Year Financial Plan for Fiscal Year 2005 Through Fiscal Year 2009 (the "Plan") as submitted by the Mayor on March 18, 2004 and with the amendments submitted by the Mayor on May 19, 2004, provided the Mayor makes the following changes to the Plan prior to its submission to the Pennsylvania Intergovernmental Cooperation Authority ("PICA"): (a) The Plan shall use as the rates for the wage and net profits tax and the business privilege tax the tax rates set forth in Bill No. 040607 and Bill No. 040608, as passed by Council on June 21, 2004. (b) The Plan shall incorporate the FY05 operating budget set forth in Bill No. 040601, the FY05 capital budget set forth in Bill No. 040602, and the FY05-FY10 capital program set forth in Bill No. 040603, as those Bills were passed by Council on June 21, 2004. (c) The Plan shall include in Fiscal Years 2006 through 2009: (i) the specific annual restorations of $14,053,000 set forth in Exhibit "A"; (ii) the specific cuts of $8,226,000 in FY06, $7,574,000 for FY07, $3,950,000 for FY08, and $4,450,000 for FY09, all as set forth in Exhibit "B"; and (iii) an annual transfer of $4,000,000 for scholarships from the Mayor's Office to Council. (d) The Plan shall include revenues representing additional growth expected from passage of Bill Nos. 040607 and 040608 in the amount of $2,000,000 in FY06, $5,000,000 in FY07, $9,000,000 in FY08, and $12,000,000 in FY09. (e) The Plan may include, beginning in FY06 and for each fiscal year thereafter, an across-the-board cut of up to 1.5% of departmental payroll expenses and related fringes for a total annual amount not to exceed $23,019,000. EXHIBIT A Annual Restorations For FY06 Through FY09 (in thousands) Activities Fund 800 Art Museum 2,000 Recreation Centers 3,000 Atwater Kent 264 African American Museum 30 Mural Arts 49 Cultural Fund 1,000 Cultural Office 100 Historic Philadelphia 30 Film Office 30 Community College 750 District Attorney 1,000 Free Library 1,000 Fire 4,000 Total Restorations 14,053 EXHIBIT B Specific Reductions (in thousands) FY06 FY07 FY08 FY09 Inspector General 250 250 250 250 Managing Director's Office 350 350 350 350 Police Productivity Bank repayment 276 124 0 0 Finance 250 250 250 250 Prisons Overtime 500 1,000 1,500 2,000 Law 600 600 600 600 Reduce Fleet Acquisition Budget 1,000 1,000 1,000 1,000 Delay Library Borrowing 3,000 3,000 0 0 Retain a Portion of the Scoop Earnings 2,000 1,000 0 0 Total Proposed Reductions 8,226 7,574 3,950 4,450 ..End