COUNCIL OF THE CITY OF PHILADELPHIA2 COMMITTEE ON FINANCE3 Room 400, City Hall6 Philadelphia, Pennsylvania June 9, 20117 10:00 a.m. PRESENT: COUNCILWOMAN MARIAN B. TASCO, CHAIR10 COUNCILWOMAN JANNIE BLACKWELL COUNCILMAN FRANK DiCICCO11 COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN BILL GREEN12 COUNCILMAN WILLIAM K. GREENLEE COUNCILMAN JAMES KENNEY13 COUNCILWOMAN BLONDELL REYNOLDS BROWN RESOLUTION 110453 - Resolution approving the15 annual Program Statement and Budget for the expenditure of the Neighborhood Transformation16 Initiative (NTI) Bond Proceeds for Fiscal Year 2012.17 - - -19 2
Good2 morning. Could we have your attention,3 please. Please. We're beginning with a4 hearing on the Finance Committee, which5 should not last too long, and then we6 will have the Council caucus.7 This is the Council Committee8 on Finance. Let me recognize that we9 have a quorum in the presence of10 Councilmen Green, Greenlee, Kenney,11 Blackwell, Goode and myself.12 I'd like the Clerk to read the13 resolution.14 Oh, and DiCicco. I'm sorry.15 Councilman DiCicco. I didn't see you.16
Resolution 110453,17 resolution approving the annual Program18 Statement and Budget for the expenditure19 of the Neighborhood Transformation20 Initiative (NTI) Bond Proceeds for Fiscal21 Year 2012.22
Good23 morning. Would you state your name for24 the record, please, and proceed with your25 6/9/11 - FINANCE - RES. 1104531 testimony.2
Good morning,3 Madam Chairman, other members of the4 Finance Committee. I'm Suzanne5 Biemiller, Director of Policy, Planning6 and Coordination for Mayor Michael7 Nutter. I'm here today to testify on8 behalf of the Nutter Administration's9 Fiscal Year 2012 Program Statement and10 Budget for the Neighborhood11 Transformation Initiative, otherwise12 known as NTI. Before I begin, I'd like13 to offer Council an amended Program14 Statement and Budget, Exhibit A to the15 resolution, which I have here, and I16 believe you have copies of as well. 19 Over the past year, the20 Administration has used remaining NTI21 bond proceeds to accommodate Basic22 Systems Repair and Adaptive Modification23 requests, support the Employer Assisted24 Housing Program, known as HomeBuy Now,25 6/9/11 - FINANCE - RES. 1104531 Historic Property Repair and the Tangled2 Title programs. All of these programs3 are paid for using tax-exempt bonds. To4 date, approximately $212 million in5 tax-exempt bond proceeds have been spent6 under NTI, with just over $9 million7 remaining to be drawn down. The8 Administration proposes that these9 remaining dollars continue to be10 allocated as described in previous11 Program Statements and Budgets; namely,12 for Demolition allocated as directed by13 City Council members, Retaining Wall14 Reconstruction, Enhanced Basic Systems15 Repair, Settlement Assistance, Adaptive16 Modification, Vacancy Prevention,17 Foreclosure Prevention and Land Tracking18 System programs. 23 Only $183,000 in taxable bond24 funds remain to be drawn down. These25 6/9/11 - FINANCE - RES. 4 million7 remains in bond proceeds and interest to8 be drawn down for land acquisition. All9 but 237 of these dollars consist of10 Qualified Redevelopment Bonds and11 interest. City Council members will12 recall that the QRB dollars can only be13 spent in qualified QRB areas that City14 Council created in 2005. 55 million in Department of Community21 and Economic Development dollars. In the22 amended Program Statement and Budget, the23 Administration has included a chart,24 Chart 9, showing how the remaining CDBG25 6/9/11 - FINANCE - RES. 1104531 dollars can be allocated across Council2 Districts. These allocations will allow3 the Administration to accommodate land4 acquisition requests made by City Council5 members that have been approved this year6 by the Interagency Acquisition Review7 Team. 11 There also remain so-called12 flexible acquisition dollars. 17 Given the fact that very few18 flexible dollars remain relative to the19 amount of QRB dollars, the Administration20 spent time last year working to free up21 additional flexible dollars for land22 acquisition. Specifically, RDA staff23 reviewed all land acquisitions that24 occurred after March 2005, which was when25 7 6/9/11 - FINANCE - RES. 1104531 the QRBs were originally issued, to see2 whether any of those that used taxable3 bond funds might be reallocated to the4 QRB bucket. It also examined the 1,5005 properties for which a Declaration of6 Taking had been made to the court and7 determined that for many, QRB, CDBG and8 DCED funds could be used to make the9 required payments into court. 20 Going forward, the Administration is21 hopeful that some of the City Significant22 QRB-based transactions will yield23 additional flexible dollars upon the sale24 of those properties by RDA at fair market25 8 6/9/11 - FINANCE - RES. 1104531 value. 7 Since June 2010, City Council8 members have submitted a number of9 proposed acquisitions to the Interagency10 Acquisition Review Team. This group,11 known affectionately as IART, consists of12 staff from RDA, OHCD, PHDC, Commerce,13 Planning, Finance, PHA, the Mayor's14 Office. This group reviews Council15 requests at monthly meetings, and since16 earlier this spring, based on17 recommendations from members of City18 Council, bases its reviews on19 presentations made to it by the proposed20 project developers. 24 Over the past year, IART has25 9 6/9/11 - FINANCE - RES.
1104531 approved more than $16 million in land2 acquisition requests ranging from small3 projects to large. 11
Thank you12 very much.13 Any questions?14 I know Councilwoman Blackwell15 has some questions that she'd like to16 ask.17
Thank19 you very much.20 Madam Chair, in the interest of21 time and the fact that we're at this22 point in our agenda, I will read them for23 the record. We will submit a copy to you24 in writing, to which we expect responses25 10 6/9/11 - FINANCE - RES. 1104531 before we adjourn.2
They4 are as follows: Recycling. Under the5 NTI program, an agreement was reached to6 recycle sales proceeds --7
--11 from land acquired with NTI funds and12 then sold and to recycle any liens13 collected as a result of the acquisition14 of properties with NTI funds. The funds15 are to be recycled back into the budget16 that was used to acquire the properties.17 The last formal report City Council18 received on recycling was May 2007. This19 year, the RDA has made payments into the20 court of nearly $10 million. What is the21 status of collecting the liens from the22 payments made into court? That's my23 first question.24 When can City Council expect to25 11 6/9/11 - FINANCE - RES. 1104531 receive a report that documents lien2 collections from the 2008 audit, which3 documented all previous lien collections4 to that point in time and in the present?5 Three, when can City Council6 expect to receive a report on recycled7 land sales from the 2008 audit to8 present?9 The next issue is quarterly10 reports. The ordinance that created the11 NTI program states, and I quote, "The12 City and the RDA shall submit quarterly13 reports to City Council that summarizes14 all expenditures of bond proceeds made15 during the previous quarter by budget16 category." I've not received such a17 report during the term of this18 Administration. Can you explain why the19 Administration has not prepared and20 submitted such reports?21 Next area, NTI Program22 Statement and Budget. The ordinance that23 created the NTI program states, quote,24 "At least 90 days before the beginning of25 12 6/9/11 - FINANCE - RES. 1104531 each fiscal year, the Mayor, or his2 appointed designee, shall send to each3 member of Council a preliminary Annual4 Program Statement and Budget," end of5 quote. It further states that, "The6 Mayor, or his designee, and the RDA at7 least 60 days before the beginning of8 each fiscal year shall submit to City9 Council for approved resolutions on an10 annual Program Statement and Budget," end11 of quote.12 We just received the Program13 Statement and Budget last week. The14 reason the language was placed in the15 ordinance was to give Councilmembers16 ample time to review the document. It is17 unfair and unreasonable to expect Council18 to review such a document, especially19 during budget times and in such a short20 period of time. Can you explain why the21 Administration has not complied with the22 timetable outlined in the ordinance?23 And on the back side, finally,24 NTI website. In the City Council25 13 6/9/11 - FINANCE - RES. 1104531 oversight section of the ordinance that2 created the NTI program, it states,3 quote, "The Administration will maintain4 an NTI project administration website to5 which all City Council members will have6 unrestricted access," end of quote. The7 website contained valuable information8 and data that is useful to members of9 Council. Can you explain why the10 Administration shut down the website11 shortly after taking office, and are you12 prepared to reinstate this website,13 including all of the appropriate14 information that was previously available15 to City Council?16 Now, these are some questions17 we could get together. There were many18 more. We outlined our resolution to deal19 with these issues and these commitments,20 and we certainly would request that you21 respond to these before Council recesses22 on the 16th.23
I'd be happy to24 do that, Councilwoman. Thank you.25 14 6/9/11 - FINANCE - RES. 1104531
Thank you.4 Her request is very important not only5 for the Councilwoman but the other6 members of this Committee and other7 Councilmembers. The reason we're doing8 this is because there are districts that9 cannot use some of the dollars. I have10 $2.8 million that I cannot use because of11 the restrictions, the bond restrictions,12 on the -- so this is helpful to several13 Council Districts moving this the way we14 are today, but certainly the questions15 raised by Councilwoman Blackwell are very16 important to all of us, and we hope you17 will comply with that.18
She asked21 me -- I asked her to hold it up, and she22 agreed.23
Thank you25 15 6/9/11 - FINANCE - RES. 1104531 very much.2 Any other questions or3 comments?4 (No response.)5
Thank you.6 There being none, we'll move this hearing7 into the public meeting.8 The Chair recognizes9 Councilwoman Blackwell to move Bill10 110453 out of Committee.11 I'm sorry. Is there anyone12 else here to testify on this bill?13 (No response.)14
Okay.18 Thank you.19 The Chair recognizes20 Councilwoman Blackwell to adopt the21 amendment proposed to this bill.22
Thank23 you, Madam Chairman. I move that the24 amendment to Resolution 110453 be25 16 6/9/11 - FINANCE - RES. 1104531 adopted.2 (Duly seconded.)3
It has4 been moved and seconded that the5 amendment to Resolution No. 110453 be6 adopted.7 All in favor will say aye.8 (Aye.)9
There13 being none, the motion is carried.14 The Chair recognizes15 Councilwoman Blackwell to move this bill16 out of Committee, as amended.17
Thank18 you, Madam Chair. I move that this bill19 be reported out of Committee, as amended,20 with a favorable recommendation and a21 recommendation that the rules of Council22 be suspended so as to permit23 consideration at our next session of24 Council.25 17 6/9/11 - FINANCE - RES. 1104531 (Duly seconded.)2
Thank you3 very much. It has been moved and4 seconded that Resolution No. 110453 be5 reported out of Committee with a6 favorable recommendation and that the7 rules of Council be suspended so that8 this bill can be heard at Council's next9 session.10 All in favor will say aye.11 (Aye.)12
There16 being none, the motion is carried.17 This meeting is adjourned.18 Thank you very much.19 (Committee on Finance concluded20 at 10:15 a.m.)21 - - -22 23 24 25 18 1 CERTIFICATE2 I HEREBY CERTIFY that the3 proceedings, evidence and objections are4 contained fully and accurately in the5 stenographic notes taken by me upon the6 foregoing matter on June 9, 2011, and that7 this is a true and correct transcript of same.8 --------------------13 MICHELE L. MURPHY14 RPR-Notary Public15 (The foregoing certification of this19 transcript does not apply to any reproduction20 of the same by any means, unless under the21 direct control and/or supervision of the22 certifying reporter.)23