COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON APPROPRIATIONS Room 400, City Hall Philadelphia, Pennsylvania Wednesday, March 11, 2015 10:25 a.m. PRESENT: COUNCILMAN W. WILSON GOODE, JR., CHAIR COUNCILWOMAN JANNIE BLACKWELL COUNCILMAN BOBBY HENON COUNCILMAN ED NEILSON COUNCILMAN MARK SQUILLA BILL 150122 - An ordinance authorizing transfers in appropriations for Fiscal Year 2015 from the General Fund, certain or all City offices, departments, boards and commissions, the Grants Revenue Fund, the Director of Finance - Provision for Other Grants to the General Fund, certain or all City offices, departments, boards and commissions. - -
Good morning. This hearing is called to order. This is a public hearing of the Appropriations Committee on Bill No. 6 150122. My name is W. Wilson Goode, Jr., Chair of the Committee. I note that a quorum is present. To my left is Councilman Bobby Henon. To my right is Councilwoman Jannie Blackwell, also Councilman Mark Squilla and Councilman Ed Neilson. The title of Bill No. 150122, authorizing transfers in appropriations for Fiscal Year 2015 from the General Fund to certain or all City offices, departments, boards and commissions, the Grants Revenue Fund, the Director of Finance - Provision for Other Grants to the General Fund, certain or all City offices, departments, boards and commissions. Ms. Rhynhart. (Witness approached witness table.) 3/11/15 - APPROPRIATIONS - BILL 150122
Good morning, Chairman Goode, members of the Appropriations Committee. I'm Rebecca Rhynhart, Budget Director. I appear before you today to offer testimony on Bill No. 150122. Bill No. 150122 provides for a transfer within the General Fund in the amount of 22.4 million and a transfer from the Grants Revenue Fund to the General Fund in the amount of 16.3 million. This ordinance is needed to transfer appropriations to various City agencies to accommodate the payroll and fringe benefit costs attributable to the IAFF award and to address other areas where funds are being realigned or shortages have occurred. The areas to be addressed by transfer of appropriations into and within the General Fund by this ordinance are the following: 21.1 million to the Fire Department to fully fund the costs 3/11/15 - APPROPRIATIONS - BILL 150122 determined by the latest arbitration award; million to the Office of the 5 Director of Finance for indemnity 6 payments and 325,000 for an internal realignment to fund additional insurance-related costs; 3.3 million to DHS for increased placement services; 2.5 million to the Prisons due to increased overtime; 2.4 million to the Law Department for appraisal fees and various contractual obligations; 700,000 to the Revenue Department, 400 of which is through internal realignment between classes, to fund the Earned Income Tax Credit Program and also to fund increased postage costs; 600,000 to the FJD for the Office of Court Compliance; 459,000 to the DA for contractual obligations and additional funds for Traffic Court; 3/11/15 - APPROPRIATIONS - BILL 150122 340,000 to the Streets Department for a special gas tax fund reimbursement in order to be compliant with state audit findings; 300,000 to the Managing Director's Office for an internal realignment between classes for the Youth Violence Reduction Program and for the purchase of CLIP vehicles; 217,000 to the Department of Parks and Recreation, an internal realignment between classes to fully fund a work order system and supplies and equipment and for the Tennis summer programming; 209,000 to the Department of Public Property for flooding repairs at One Parkway; 160,000 to the BRT to fund salary costs due to increased volume of appeals and court operating costs. I respectfully request that you report this bill out of Committee with a favorable recommendation, and I further 3/11/15 - APPROPRIATIONS - BILL 150122 request that the rules of Council be suspended so as to permit first reading at the next session of Council. I appreciate the opportunity to testify and I'll be happy to answer any questions you may have. I also have representatives from the departments involved with the transfers here to answer questions as well.
Thank you for your testimony. Are there questions from members of the Committee? Councilman Henon.
I just have a few questions. Maybe you could shed a little light on the -- I think the $2 million in the Law Department when it comes to assessors, the BRT appeals and the court costs. Can you just shed a 3/11/15 - APPROPRIATIONS - BILL 150122 little more clarity on that.
Sure, and I might ask the Law Department to come up with me as well. But the appraisal costs are above anticipated due to the continuation of the appeals that are going through BRT. So this is something that the Law Department needed additional funds for this year for that purpose. There's also other contractual obligations. There's things that have increased -- I mean, there is an issue with more than one department where a decade ago we used to give an increase to departments sort of for inflation on an annual basis for contractual obligations and we no longer do that. So sometimes departments do have issues with rising costs on the contractual side.
And I understand that, and I'll wait for the budget process to get down to the specifics. I certainly support trying to speed along any of the appeals, no matter 3/11/15 - APPROPRIATIONS - BILL 150122 where they're at, whether they're in the court system, whether they're in the appeal process or they still needed to be reviewed. Would you have, going into this budget process, a breakdown on how many nunc pro tunc that are remaining, as well as how many appeals, how long they are, how many is in the court, in specific breakdown? I don't need an answer to that right now. If you could provide that for the budget process that's going to be coming, because I think it's going to be a concern. Well, it's going to be questions that I'm going to be asking. I'm sure a lot of other members will be asking the same. Not to put you on the spot, but it's 2 million above and beyond anticipation of the process.
Shelley Smith, City Solicitor. I just want to make sure I understand specifically. You want the number -- do you want the number of 3/11/15 - APPROPRIATIONS - BILL 150122 appeals generally and then how many of them are nunc pro tunc, just sort of an overall --
Just to clarify, split them up on how many appeals are pending, how many were heard, how many are still pending, and where they are through the process as we move forward to FY16.
Thank you, Mr. Chairman. Also beside the money on the appeals, is there any money for additional workers or anything like that for upcoming assessments or is that something that's going to be done in the next budget or was this necessary here?
Upcoming 3/11/15 - APPROPRIATIONS - BILL 150122 assessments -- this money, just to be clear, is to get appraisals for the appeal process. So that's what this is. In terms of increased assessments, I know that OPA has been staffing up in terms of continuing to do the valuations.
So basically this $2 million is basically just for getting appraisals?
Well, the 2 million is covering various things in the Law Department, one of which is the appraisal costs. There's other items that have come in above budget that need to be handled in the Law Department.
Because we also have obviously during the OPA process, right, we went through and reassessed every parcel? So we already have that information. So are -- or we don't? That's why we're doing these new appraisals?
Yes. This money -3/11/15 - APPROPRIATIONS - BILL 150122 431,000, rounding up, is the amount of money needed to pay for appraiser services for the assessment appeals. So for assessments that have been done and have been challenged, part of our process to defend those and have an objective witness to defend our assessment of the property is to hire an appraiser to do that. So that's what that $431,000 is for, assessments that have already been done that are now being appealed through the process.
Any other questions from this Committee? (No response.)
Seeing none, we will move from our public hearing into a public meeting to consider Bill No. 22 150122. I note that Councilman Squilla has been appointed to the Committee for today. 3/11/15 - APPROPRIATIONS - BILL 150122 The Chair recognizes Councilman Henon for a motion on Bill No. 150122.
Thank you, Mr. Chairman. I move a motion for Bill 6 No. 150122 be reported out of Committee with a favorable recommendation, with a rules suspension as to be heard at our next Council session. (Duly seconded.)
Bill No. 18 150122 is reported out of this Committee with a favorable recommendation and suspension of the rules to allow first reading at our next Council session. This concludes our public meeting. Thank you very much. ) - - CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the foregoing matter, and that this is a true and correct transcript of same. -------------------- MICHELE L.