COUNCIL OF THE CITY OF PHILADELPHIA2 COMMITTEE ON APPROPRIATIONS3 Room 400, City Hall6 Philadelphia, Pennsylvania Wednesday, December 1, 20107 10:30 a.m. PRESENT: COUNCILMAN DARRELL CLARKE10 COUNCILWOMAN JANNIE BLACKWELL COUNCILMAN W. WILSON GOODE, JR.11 COUNCILMAN BILL GREEN COUNCILMAN CURTIS JONES, JR.12 COUNCILMAN JACK KELLY COUNCILWOMAN MARIA D. QUINONES-SANCHEZ13 BILLS - 100712, 100713, 100714, 100762,15 100774, 100775 - - -17 2
Good2 morning. This is a meeting on the3 Committee of Appropriations. We have4 established a quorum: Councilman Goode,5 Councilwoman Sanchez and temporary6 appointment of Councilman Jones and7 Councilwoman Blackwell.8 Will the Clerk please read the9 title of the bill.10
Bill No. 100712, an11 ordinance authorizing transfers in12 appropriations for Fiscal Year 201013 within the Water Fund from certain or all14 City offices, departments, boards and15 commissions to certain or all City16 offices, departments, boards and17 commissions;18 Bill No. 100713, an ordinance19 authorizing transfers in appropriations20 for Fiscal Year 2010 within the Grants21 Revenue Fund from certain or all City22 offices, departments, boards and23 commissions to certain or all City24 offices, departments, boards and25 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 commissions; and2 Bill No. 100714, an ordinance3 authorizing transfers in appropriations4 for Fiscal Year 2010 within the General5 Fund from certain or all City offices,6 departments, boards and commissions to7 certain or all City offices, departments,8 boards and commissions; and9 Bill No. 100774, an ordinance10 authorizing transfers in appropriations11 for Fiscal Year 2011 within the Grants12 Revenue Fund from the Director of13 Finance - Provision for Other Grants -14 Federal Stimulus Funding to certain or15 all City offices, departments, boards and16 commissions; and17 Bill No. 100775, an ordinance18 authorizing transfers in appropriations19 for Fiscal Year 2011 from the Grants20 Revenue Fund, the Director of Finance -21 Provision for Other Grants to the General22 Fund, the Department of Revenue.23
Thank you.24 (Witness approached witness25 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 table.)2
Good morning,6 Councilman Clarke and members of the7 Appropriation Committee. My name is8 Rebecca Rhynhart and I serve as the9 Budget Director of the City of10 Philadelphia. I appear before you today11 to offer testimony on Bill Nos. 13 Bill No. 20 Bill No. 1621 million of Fiscal '10 appropriations for22 the Office of Director of Finance within23 the Grants Revenue Fund. City's Productivity Bank, which has been2 discontinued. Bill No. 1 charges for the fiscal year. 4 Two point two million is5 requested by the Sheriff to cover the6 cost of overtime spending above the7 amount budgeted. 10 Six hundred thirty-four11 thousand five hundred ninety-five dollars12 is requested by the First Judicial13 District to be paid to the Administrative14 Office of Pennsylvania Courts per the15 Zero Growth agreement between the FJD and16 the City, which requires the City to pay17 over to the AOPC any surplus in the FJD18 budget and a share of the revenue they19 generate. 2 Three hundred twenty-seven thousand eight3 hundred seventy-nine dollars is requested4 by the Procurement Department for5 increased advertising costs. 8 The City Planning Commission9 requests $73,395 to fully fund payroll10 charges for the year. 22 Bill No. 5 The Department of Public Health6 seeks appropriation for $192,445 to7 support an ARRA-funded project that will8 create interconnectivity between the9 City's immunization information system10 and electronic health records of regional11 hospitals and healthcare providers. 21 Bill No. 14
Thank you,15 Ms. Rhynhart. Ms. Rhynhart, before we16 get into the questioning relating to17 these particular bills, I just want to18 ask you a question -- I spoke to you19 earlier -- about the quarterly Manager's20 Report, and this came as a result of the21 bill that was held, and in your testimony22 you referenced the fact that shortfalls23 in revenue was one of the reasons why24 there were some reductions in some of the25 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 departments, particularly the Activities2 Fund. And when we see the quarterly3 Manager's Report, there's a change in4 revenue estimates, upwards of $665 million. Can you tell me where we are6 exactly?7
In the8 quarterly, there is an increase in the9 ending cash position, as you're10 mentioning, and that is the result at the11 quarterly of DHS funding coming in a12 little bit better up to this point than13 expected. However, since the quarterly14 came out, we again have gotten news that15 there is likely to be further DHS funding16 delays, reimbursement delays, to the17 City, which will lower that cash balance18 down to what was previously thought. So19 I think there's considerable risk on the20 cash side and that that risk continues.21
When you22 say "came in better than expected," what23 does that mean?24
That means25 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 that --2
The5 reimbursements came in a little bit ahead6 of the schedule that they were thought7 to.8
When you13 say "better than expected," it implies14 that we actually got more than we15 expected. You say it was more timely?16
Usually with the17 DHS and reimbursement it's a timing18 issue, and that creates a large problem19 for our cash position.20 COUNCILMAN CLARKE:21 Councilwoman Sanchez.22
I have a23 point of information on that.24 Last year during our budget25 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 deliberations, there was a lot of2 discussion about the amount of3 reimbursement we were going to be4 receiving at the state, and, in fact, we5 were disputing back an amount that could6 have been as bad as 10 million or as good7 as 2 million.8 Is this part of that9 discussion? Because I think there was an10 issue of the state taking our11 reimbursement level down from -- I don't12 know what the percentage was. I think13 their reimbursement rate is like 7014 percent and there were some issues about15 allowable expenses.16
I know that17 there are different reimbursement rates18 for different types of programs and19 funding. So I would have to look back20 and see what exactly was discussed at21 that point to be able to get you a good22 answer on that.23
I would24 like an update on that, because that was25 13 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 a major -- it was a varying amount of2 close to 10 million, depending on which3 side, and the Administration's position4 was that they were going to err on the5 most conservative side, and even when we6 got indications from Harrisburg that we7 were going to get -- most of those8 expenses would be accepted, which is a9 huge shift, you know, the Administration10 was unwilling to change their budget11 number.12 So I'd like an update, and if13 you could submit that to the Chair.14
Are there21 other questions for this witness?22 Councilman Jones.23
Good24 morning.25 14 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1
Can you give3 me a little better explanation or a4 little more in-depth explanation about5 712 and that transfer and separation?6 What is that?7
Sure. When8 employees retire, they get a lump-sum9 payment. You're probably aware of this.10 So usually either retirements are known11 far enough in advance or there's a little12 bit of extra room in the budget so that13 the lump-sum payment can be made to the14 employee, but in this situation, there15 wasn't room in the budget to fund the16 24,000 for that employee's retirement.17
So this is18 not a DROP; this is just a normal19 separation, vacation?20
And has23 there been an impact based on DROP and24 anticipated folk cashing out, leaving,25 15 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 retiring based on that, and how are we2 planning for that?3
I would have to7 get back to you on that. I mean, I know8 that work is being done on it, but I9 would have to get back to you on what10 type of numbers that looks like.11
It's my12 understanding once the consideration of13 DROP started and whether or not it was14 going to remain a City financial policy,15 there were close to 1,050 new applicants,16 and that seems to me going to be a large17 cash drawdown at some point, and I'd be18 interested in understanding what impacts19 that's going to have, both by way of a20 financial cash situation but also by way21 of the intellectual property that these22 individuals take with them. So if it's23 the Water Department, who did a great job24 Thanksgiving Eve -- some folks were doing25 16 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 work up there from their department and2 for whatever reason, they forgot to turn3 the main on and people were faced with4 the prospect of no Thanksgiving dinner or5 even any water, and they got on it. So6 I'm appreciative of that kind of service7 from the Department. But I'd be8 interested to know how we are planning9 for the possibility of folk coming10 through the system and what that's going11 to mean, both by way of our cash and our12 intellectual property.13
Yes, I19 do.20 I want to look at Bill 714 just21 to get clarification. I know we're going22 to have these testimonies submitted as23 part of the record. You're saying you're24 requesting 6.8 million for the Police25 17 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 Department for holiday pay, but in the2 testimony it speaks to overtime. So can3 I get some clarity on that?4
Sure. What5 happened on Police is that because --6 both are actually correct, and I'll7 explain how they fit together.8 Because overtime costs were9 above budget for Police, at the end of10 the year, there wasn't enough room in11 personal services budget line to fund the12 holiday pay, which comes at the very end13 of the year. So it was an overtime issue14 throughout the year that resulted in15 there not being enough funds to fully16 fund the holiday pay, which comes at the17 end of the year.18
End of19 last year? Are we talking calendar or20 fiscal call?21
So we're24 talking about holiday pay as of June25 18 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 30th?2
No. That3 actually -- I see where your questioning4 is going. Okay.5
And the6 second question would be, if we're asking7 for a transfer of 6.8, we're halfway8 through the year for overtime. Where is9 that going to put us by the end of the10 year?11
Well, this is12 for Fiscal '10. So this issue was a13 Fiscal '10 issue.14
So15 that's why I'm trying to clarify. If16 it's a 2009 expense and now we're17 cleaning up because the money was18 expended in 2011 but it's a 2010 expense,19 so it's a reconciliation, and then what's20 the rollover deficit number?21
Well, this is22 for to fund the pay for Fiscal '10. So23 it already has been paid. So if your24 question is more on Fiscal '11 and how25 19 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 their budget is looking for Fiscal --2
Right,3 because I want to know what the impact of4 this, because we're taking it from 20115 to pay -- it's really a 2010 expense, so6 we were over-budgeted in 2010 that we're7 covering for 2011. So then I want to8 know how that impacts our overtime budget9 for 2011.10
Sure. We're11 actually, just to clarify, we're covering12 that with other funds from Fiscal '10.13 So it's not -- we're not dipping into14 Fiscal '11 to fund the Fiscal '10.15
Okay.16 And that's the clarity point.17 What might be helpful for us18 with some of these, because I know you19 put it in a narrative format, is to kind20 of chart some of this out in terms of21 some of these transfers are being offset,22 but many are not, and it's really hard to23 gauge the total amount additional that24 we're going to be spending as a result of25 20 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 these appropriations. So for the future,2 a chart might take care of all of this3 narrative, because we can quickly see it.4 I have a question, and this is5 the first time I see this and I've been6 in Appropriations now for a couple of7 years, this payment to the Administrative8 Office of the Pennsylvania Courts, the9 surplus payment. Could somebody explain10 that to me?11
I14 haven't seen it before, so if somebody15 can clarify that for me.16
I have18 an issue with us giving anybody any19 money.20
My21 understanding -- and, again, I'm new to22 this, but my understanding is, there is23 an agreement between -- it's called the24 Zero Growth agreement, and it's between25 21 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 the courts and the City and it says that2 if there is a surplus, it needs to be3 transferred over to the AOPC to purchase4 items for the courts.5 Now, the way this will work is6 that items will be purchased for the7 courts that then -- it won't need to be8 spent in Fiscal '11. So it will help9 their Fiscal '11 budget. But that is --10 my understanding is that --11
That's, I14 believe, managed by the courts, but the15 courts might be able to provide a better16 explanation.17
That18 would be good. That way in the future, I19 won't have to ask that question.20
Please24 identify yourself for the record.25 22 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1
Sure. Good2 morning, Councilwoman. My name is Kevin3 Cross. I'm Deputy Court Administrator4 for the First Judicial District. I5 apologize own behalf of my Court6 Administrative, Dave Lawrence, who cannot7 be here. He is working with a non-profit8 group that's doing some court reforms.9 To answer your question, this10 is a transfer of funds from FY10 that11 will be utilized in FY11 by the First12 Judicial District to offset some of its13 budget deficits.14
The First Judicial17 District manages it in conjunction with18 the Administrative Office of Pennsylvania19 Courts.20
Okay.21 And the reason for the surplus is because22 we're collecting more in fees than we23 expected?24
Yes. It's related25 23 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 more to filing, court filing fees, that2 have increased over this year. We have a3 base amount, and then anything over that4 base amount gets split between the First5 Judicial District and the City of6 Philadelphia.7
So that8 represents half? In our Philadelphia9 budget, we got half and you got half?10
The City's take?19 We generated about $12 million in20 additional revenue. The City got about21 6.9 million and we actually get about $122 million, actually, 1.1 million.23
Was that24 $6.9 million reflected in our budget as25 24 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 an expected income?2 That's for Rebecca, the3 Treasurer -- the Budget Director. I'm4 sorry.5
Were the funds6 anticipated in the budget? I mean, I7 would have to actually check on that.8
Again, I would15 have to get that information for you, but16 we could do that.17
Okay.18 I'm going to do one more and then -- are19 you waiting, my colleague, here20 patiently?21 I want to ask a little bit22 about the overtime to the Sheriff's23 Office. Last year they were over budget24 by 3 million. This year it's 2.225 25 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 million, and we're halfway through the2 year. Where would this put us at the end3 of the year?4
Just for5 clarification, the 2.2 million is for6 Fiscal '10 year end.7
So11 that's part of the 3 million that we12 spoke about during the budget for them13 being over?14
So this17 too is part of that 3; it's not 3 plus 2?18
I don't believe19 that's the case. No, it's not the case.20
For further22 questions I would defer to the Sheriff's23 Office.24
I just25 26 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 want a clarity on that, because last year2 we spoke about the 3. So I just wanted3 to make sure it wasn't 3 plus and was4 part of that 2.5 I'll let my Council colleague6 continue. I have some --7
Thank you.11 774, there is a provision from12 Grants under the stimulus funds, which13 I'm kind of familiar with. Can you tell14 me why we are asking for a transfer15 payment? Didn't we get a grant for that?16
Good morning. My17 name is Maari Porter. Good morning.18 We're asking for a transfer for19 1.2 million for ARRA funds, because we've20 been granted three grants, three21 individual grants, which are listed here,22 and I can go through if you'd like.23
I'd like to24 know who the primes and subs are on each25 27 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 of those.2
Sure. There is6 one grant the Health Commissioner is7 seeking for 192,445 for the City's8 Immunization Information System and9 Electronic Record. The City is the prime10 recipient on this.11
As I understand19 it, we have determined who they are.20 They'll be with non-profits and with the21 healthcare sector, as I understand the22 grant. It's between the City and23 regional and City healthcare providers.24 And so we'll be working with the current25 28 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 healthcare providers to basically connect2 the electronic systems. So that we'll be3 working with existing contractors,4 existing healthcare providers.5
So does this6 thing include things like flu shots or7 anything like that or it's just strictly8 immunization for young people?9
As I understand10 it, it's strictly immunization for young11 children, and it's just about the12 connectivity of our information databases13 with other healthcare providers'14 databases.15
So you're16 going to give us a list of those17 subcontracting opportunities and who they18 were awarded?19
Whether22 there was minority or female23 participation on any of them.24
No. Actually, I25 29 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 apologize. There are no advertised2 contracting opportunities, as I3 understand it. What we're working with4 is existing non-profits.5 Is that right?6 Correct. Sorry. So that was7 my misunderstanding about the first8 question.9 So to your point, unfortunately10 there are no OEO opportunities here. I11 apologize for the misunderstanding.12
If I13 understand Wilson Goode's clarification14 of the Code, that we still have to have15 an OEO report for those kinds of16 non-profit activities under17 participation?18
There were no23 goals set on these contracts, as I24 understand it.25 30 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 Is that right?2 Correct.3
On the non-profit8 side, we're working with Angela9 Dowd-Burton and OEO to look at all the10 non-profit providers, because OEO11 currently, as I understand it, is looking12 at how we can capture non-profit13 providers. So we're working with Angela14 Dowd-Burton and making sure that all our15 contracts will be covered by that, but16 that process is still developing. But we17 are working on that.18
Correct. The21 second contract is also -- the second22 grant rather is with the Health23 Commissioner, and he's seeking24 appropriations for $1,019,315, and that's25 31 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 for the enhanced evaluation for Get2 Philly Healthy Obesity Prevention3 Program. That is an evaluation -- it's a4 $1.7 million grant and it's for the5 evaluation of our current $15 million6 ARRA grant for obesity prevention. So7 the federal government in their wisdom8 has decided actually we should try and9 evaluate this program, and that's what10 that grant is about.11 Again, to your question, there12 are no OEO opportunities here because13 we're working with, as I understand it,14 the School District and some other15 non-profit providers to do kind of some16 technical evaluation.17
And the third, the20 District Attorney, is seeking $49,368 for21 Victim/Witness Training Coordinator, and22 that's a staff position for one year. So23 that doesn't have any OEO opportunities24 on that.25 32 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1
Thank you,2 Mr. Chairman.3 Thank you for that information.4
I just8 wanted to make sure that you provided the9 chart that gives us the numbers of what10 is not being offset by internal transfers11 and if that somehow takes us offline to12 what we're doing this year, because I13 think that will help answer a lot of the14 questions that I have related to some of15 these transfers.16 And I just ask my Council17 colleague, is there a reason why we18 waited this late to do these transfers19 related to the 2010 fiscal year?20
I think -- it's21 my understanding that this is the22 standard timing for going to Council for23 this, because we don't know until the end24 of the year. We anticipate and we want25 33 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 the departments to all be within their2 budgets. So this is the time that we go3 to Council with it, after the fiscal year4 ends and we can see 100 percent what5 departments have not been able to make6 their budget.7 But in terms of your first8 question, all of this relates to '10, so9 it doesn't -- it's not impacting the10 '11's budget, but at the same time, I11 will provide for you a spreadsheet that12 shows --13
But the14 numbers are not offsetting each other, so15 it is going to impact 2011.16
So I19 want to make sure, particularly as we20 talk about overtime and expenditures not21 allocated in 2010, it concerns me that we22 may have lowered those numbers in 201123 and then we're going to be having this24 conversation next year because we're25 34 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 going to be a shortfall.2 So to the extent -- because,3 again, going back to Councilman Clarke's4 earlier discussion about what your5 Manager's Report says and where we end6 up, there were decisions made post the7 budget to make additional reductions that8 we were not part of and now we see money9 being moved around, around, overtime and10 additional expenses.11 So we just want to make sure12 that if we foresee we're going to be even13 more over budget because we're over14 budget last year in 2010, we ask people15 to give us lower numbers in 2011 to make16 the numbers work, to the extent that we17 can foresee what those numbers are going18 to be, that would be helpful, because19 that means -- and particularly for all20 these independent and elected offices,21 they may be over budget, and we need to22 know that sooner rather than later,23 because then it becomes a discussion of24 we didn't expect them to be $4 million25 35 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 over budget. And I think what we're2 seeing here, at least as I count these3 numbers, is already a couple million4 dollars, and if they stay on pace. So we5 just need to know that.6
Are there11 any other questions for this witness?12 (No response.)13
Would the17 Committee like anyone else to testify?18 (No response.)19
This20 Committee will stand in recess until we21 gain a quorum and Councilman Clarke22 returns as Chair.23 Thank you very much.24 (Brief pause.)25 36 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1
This2 concludes the public hearing. We will3 now go into the public meeting on the4 Committee of Appropriations.5 Councilman Goode, can I please6 have a motion on Bill No. 100712.7
Thank you,8 Mr. Chair. I move that Bill 100712 be9 reported out of the Committee with a10 favorable recommendation and the rules of11 Council be suspended so as to permit12 first reading at our next Council13 session.14 (Duly seconded.)15
The ayes22 have it. Bill No. 100712 moved out of23 Committee with a favorable recommendation24 with rules suspension to allow reading at25 37 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 the next session of Council.2 Councilwoman Sanchez, please3 give me a motion on Bill No. 100713.4
Thank5 you. I move that Bill 100713 be moved6 out of Committee with a favorable7 recommendation and the rules of Council8 be suspended to allow first reading at9 our next public session.10 (Duly seconded.)11
It's been12 moved and seconded.13 Those in favor?14 (Aye.)15
The ayes19 have it. Bill No. 100713 is moved out of20 Committee with a favorable recommendation21 with rules suspension to allow reading at22 the next session of Council.23 Councilman Jones, please give24 me a motion on Bill 100714.25 38 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1
I make a2 motion that Bill No. 100714 be moved out3 of Committee with a favorable4 recommendation and the rules of Council5 be suspended, thus allowing the next6 reading at our Council session.7 (Duly seconded.)8
It's been9 moved and seconded.10 Those in favor?11 (Aye.)12
The ayes16 have it. Bill No. 100714 is reported out17 of Committee with a favorable18 recommendation with rules suspension to19 allow reading at the next session of20 Council.21 Councilman Kelly, can you22 please give me a motion on Bill No.23 100774.24 COUNCILMAN KELLY:25 39 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 Mr. Chairman, I move that Bill 100774 be2 reported out of this Committee with a3 favorable recommendation and also move4 the further suspension of rules in order5 for this bill to be read at the next6 session of Council.7 (Duly seconded.)8
It's been9 moved and seconded.10 Those in favor?11 (Aye.)12
The ayes16 have it. Bill No. 100774 is reported out17 of Committee with a favorable18 recommendation with rules suspension to19 allow reading at the next session of20 Council.21 Councilman Goode, please give22 me a motion on Bill No. 100775.23
Thank you,24 Mr. Chairman. I move that Bill 100775 be25 40 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 reported out of the Committee with a2 favorable recommendation and the rules of3 Council be suspended so as to permit4 first reading at our next Council5 session.6 (Duly seconded.)7
It's been8 moved and seconded.9 Those in favor?10 (Aye.)11
The ayes15 have it. Bill 100775 is reported out of16 Committee with a favorable recommendation17 with rules suspension to allow reading at18 the next session of Council.19 For the record, Bill No. 10076220 has been held in Committee.21 This concludes the public22 meeting on the Committee of23 Appropriations.24 Thank you all very much.25 41 12/1/10 - APPROPRIATIONS - BILL 100712, ETC.1 (Committee on Appropriations2 concluded at 11:05 a.m.)3 - - -4 5 6 7 8 9 10 11 12 42 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 December 1, 2010, 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