Resolution 080685

..Title Calling on the Treasurer to do an analysis to determine the degree to which the City loses revenue as a result of unclaimed and uncashed paper checks disbursed by the Commonwealth of Pennsylvania and the steps necessary to implement electronic transfer of these funds. ..Body WHEREAS, The City of Philadelphia receives from the Commonwealth of Pennsylvania grant funding in excess of $257 million annually. These grants fund everything from fire and rescue operations to Fairmount Park beautification; and WHEREAS, These funds are currently delivered to the City via US mail in paper check form; and WHEREAS, It can take the City up to a month to deposit checks received from the State, during which time interest could be accruing. It is estimated that lost interest ranges from several hundred thousand dollars to over $1 million annually; and WHEREAS, The amount of uncashed, lost and unclaimed checks has been estimated by the Commonwealth of Pennsylvania's Department of Treasury to exceed $1 million annually; and WHEREAS, While the City can initiate a search to reclaim the uncashed/unclaimed checks, such delay jeopardizes services and programs needed by the city's residents; and WHEREAS, Any check mailed to the City of Philadelphia has the potential of being lost, stolen or misplaced; and WHEREAS, Electronic Fund Transfer would totally eliminate this problem and save the City millions of dollars in lost revenue and interest; and WHEREAS, The Commonwealth of Pennsylvania's Department of Treasury has a program entitled "Invest" to facilitate the electronic movement of funds to municipal governments and non-profit organizations which provides interest bearing accounts collateralized by the State in the amount of 102%, thus securing such investments with the full strength and credibility of the Commonwealth of Pennsylvania; now therefore RESOLVED, BY THE COUNCIL OF CITY OF PHILADELPHIA, That it hereby calls on the Treasurer to do an analysis to determine the degree to which the City loses revenue as a result of unclaimed and uncashed paper checks disbursed by the Commonwealth of Pennsylvania and the steps necessary to implement electronic transfer of these funds. ..End