COUNCIL OF THE CITY OF PHILADELPHIA2 COMMITTEE OF THE WHOLE 3 Room 400, City Hall, Philadelphia, PA Wednesday, May 13, 2009, 3:55 p.m.4 Res. 090226 Revised 5-Year Plan Approval5 Bill 090212 Capital Program 2010-2015, Inclusive6 Bill 090213 FY '10 Capital Budget7 Bill 090214 FY '10 Operating Budget8 Bill 090215 Refuse and Littering Fine Increase9 Bill 090216 Board of Education/Real Estate Taxes10 Bill 090217 " " " " " " Bill 090218 " " " " " "11 Bill 090219 Sales & Use Tax, Hotel Occupancy Tax12 Bill 090220 Commissioner of Records Fees13 Bill 090221 Businesses Waste Hauling14 Bill 090244 Sales & Use Tax, Hotel Occupancy Tax15 Bill 090378 Revise Wage and Net-Profits Tax16 Bill 090379 Business-Privilege Tax Computation17 COUNCILMEMBERS PRESENT:18 Anna C. Verna, Chair William K. Greenlee Marian B. Tasco, Co-Chair Curtis Jones, Jr.19 Jannie C. Blackwell Jack Kelly Blondell Reynolds-Brown Joan L. Krajewski20 Darrell L. Clarke Donna Reed Miller Frank DiCicco Brian J. O'Neill21 Wilson W. Goode, Jr. Frank Rizzo Bill Green Maria Q. Sanchez22 V A R A L L O Incorporated23 Litigation Support Specialists 1835 Market Street, Suite 60024 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.267025 2 5/13/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1
Good2 afternoon, everyone. That is a continued3 public hearing of the Committee of the4 Whole.5 MR. McPHERSON: Resolution6 090226, Bills 090212, 090213, 090214,7 090215, 090216, 090217, 090218, 090219,8 090220, 090221, 090244, 090378, 090379.9
Will10 the Finance Director please come to the11 table.12 (Witnesses come forward.)13
It is18 my understanding that the Administration19 has amendments to offer?20
Madam President,21 that is correct.22 Steve Agostini, Budget Director23 for the City of Philadelphia.24 We do have some amendments, and25 3 5/13/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 if you will bear with me, I'd like to2 walk through those.3 The first amendment would be4 moving $200,000 out of the Mayor's Office5 from Class 100 to the Managing Director's6 Office in order to cover the salary of7 the new Parks and Library Director.8 The second would be a --9 COUNCIL PRESIDENT VERNA:10 Excuse me, Steve, isn't that also for11 staff? Is it one staff member?12
I'm sorry. It's13 for one staff person -- two staff people,14 one staff person being the director and15 then for some administrative or clerical16 assistance.17 The second would be for the18 Division of Technology, a move from Class19 200 Purchases of Services to Class 100,20 1.5 million to fund approximately 1721 positions for a variety of functions22 within the Division of Technology.23 The next item would be the24 receipt of the $200,000 in Class 10025 4 5/13/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 Funds from the Mayor's Office.2 And then an internal transfer3 from Class 200 of $1,015,386 to Class 1004 for the Youth Violence Reduction Program,5 and that would be to cover police6 overtime associated with that.7
It would be to10 cover police overtime associated with11 that program.12 The next amendment would13 restore $500,000 in contributions, Class14 500, to the Recreation Department for15 restoration of the Philadelphia16 Activities Fund.17
So18 how much is there in the Activities Fund?19
Madam President,20 I'd have to check. If you could give me21 a moment, I'll check and get back to you.22
I23 would appreciate it. I think that was a24 question that we all had.25 5 5/13/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1
The next item6 would be a movement of Class 100 Funds in7 the Department of Human Services into8 Class 200 Purchase of Services, and9 that's a rebalancing -- to correct a10 rebalancing error on our part.11 The next item would be Class --12 in addition to Class 200 in the Director13 of Finance's Office, a transfer from the14 Fringe Account to Class 200 of $559,999.15 And the next item would be a16 transfer, recognizing that transfer out17 of the Finance Fringe Account, $559,999.18 And then the recognition of the19 deferral with respect to the pension20 payment, and the net of that number is21 $146,906,001. So that the total Fringe22 Account change in Class 100 would be23 $147,466,000.24 And to your question about the25 6 5/13/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 Activities Fund, it would be at2 $2.2 million.3
I'm8 sorry. Was the 500,000 included in the9 2.2 million?10
The next item18 would be an intern transfer from the19 Board of Ethics, moving $51,500 out of20 Class 100 into Class 200, the Purchase of21 Services. And I believe this has to do22 with the purchase of some legal services23 associated with the Board of Ethics.24 The next item would be Zoning25 7 5/13/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 Code Commission, an internal transfer,2 moving $20,000 into Personnel, $35,0003 out of the Purchase of Services Class4 200, and moving $15,000 into Class 300,5 400 Materials, Supplies and Equipment.6 So let me start that again7 'cause I know that sounded confusing.8 Move 35,000 out of Class 2009 and move 20 into Class 100 and 15,00010 into Class 300 for the Zoning Code11 Commission.12 The next item is an addition of13 $4 million to the District Attorney14 Budget into Class 100. That would15 increase their budget from the 24.9 to16 the $28.9 million, and that would come17 from fund balance in the General Fund.18 That would take total changes19 in the General Fund as follows:20 $144,329,474 from Class 100.21 $1,408,473 into the Class 20022 Purchase of Services.23 $15,000 in the Class 300 and24 400.25 8 5/13/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 And then an addition of2 $500,000 in the Contributions and3 Indemnities.4 For a total decrease in the5 General Fund expenditures of6 $142,406,001.7 In addition, we made a8 technical correction on the OHCD Budget9 to maintain the reporting relationship to10 the Mayor's Office as opposed to11 displaying it, as we originally had, in12 the proposed, where the reporting13 relationship was to the Director of14 Commerce and the Deputy Mayor. That has15 been corrected so that it is now a direct16 reporting relationship to the Mayor's17 Office.18 In the Grants Revenue Fund, we19 have made a couple of changes.20 For the Personnel Department,21 we have augmented the Class 200 by22 $505,977 in order to carry over Grant23 Funds.24 In Class 900 for the Finance25 9 5/13/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 Department, about $23 to clean up some2 accounts.3 And then, finally, we have4 added $200 million in Recovery Act5 standby appropriation for the purposes of6 receiving dollars that may become7 available in coming months that are8 associated with the Recovery Act.9 And, as we have said on10 numerous occasions here, it is our intent11 to come back to you to be sure that we12 have appropriation authority from this13 body before we move forward with14 appropriations and expenditures.15 So the total Grants Revenue16 Fund would change by the following:17 A Class 200 increase of18 $505,977.19 In Class 900, $200,000,023.20 For total of $200,506,000.21 We have some small changes to22 the -- actually large changes to the23 Capital Budget Program, so let me walk24 you through those.25 10 5/13/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 In Recreation, cultural2 facilities renovation, we have a3 $3 million increase. And then in -- and4 I believe that's primarily for the Dell.5 And then in the Water6 Department, we have four changes, and7 these are a combination of loan8 authorizations and capital improvements9 associated in stimulus funding and the10 Pennvest loan actually primarily.11 So the Water Department changes12 are:13 Improvement in the collector14 system. That's $42,765,000.15 Storm flood relief,16 $37 million.17 Improvements to the conveyance18 system, $47,964,000.19 And treatment facilities,20 $42,887,000.21 For a total of $170,616,000.22 And the total changes to the23 Capital Budget Program: $173,616,000.24 And, as I understand it, the25 11 5/13/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 Planning Commission will be taking these2 up at its meeting on the 21st and3 reporting that out so that you will have4 that sufficient time for your review and5 adoption of the budget next week.6
Thank7 you.8 Are there any questions?9 The Chair recognizes Councilman10 Green.11
Thank you,12 Madam Chair.13 Good afternoon.14 Can you describe the15 arrangement that you've made with the DA16 and whether or not she's satisfied? And17 also with the Courts with respect to18 appropriation for next fiscal year?19
With respect to20 the Courts, we have made no changes to21 the budget that was before you and22 continues to be before you.23 With respect to the District24 Attorney, the Administration and my25 12 5/13/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 office has met with talked to the DA on2 numerous occasions since last Friday.3 We've reached an agreement where their4 view is that with the 28.9, $29 million5 General Fund budget, that would be6 sufficient for their operations.7 We sat and understood what8 their concerns were and what their needs9 were. And so, we agreed to come back and10 add $4 million for their purposes. That11 does leave them with a reduction, but not12 as sizeable as before.13 And based on conversations that14 I've had with Allen Toslosky, I believe15 that we're all in agreement. I have not16 heard anything as recently as last night17 to suggest otherwise.18
Okay. And19 what about the Courts; is there an20 agreement outside of this budget to21 provide additional funding?22
Councilmember,23 what I understood was that we, the24 Administration, along with Courts, would25 13 5/13/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 look to a combination of sources, most2 notably the Burn Grants that have still3 to be allocated and addressed in order to4 provide some kind of addition to the5 Courts budget. I don't believe that that6 has been settled yet.7 And if I all correctly, it was8 Deputy Mayor Gillison's intent to come9 back to this body to make sure that you10 were aware of whatever changes in11 appropriations would be made with respect12 to that 13.1 million in grants.13
Right.14 Well, the grant itself requires that it15 be reviewed by the governing body of the16 local authority, and under the Charter,17 we're the governing body of the City of18 Philadelphia.19 And I'm wondering when we're20 going to see -- the last opportunity we21 have to see that grant form is tomorrow,22 when we're in session, so that we can23 review it.24
Councilmember, I25 14 5/13/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 don't have an answer to that. I'll have2 to go back and get back to you about3 that.4
Yeah, we also would10 like to amend the Five-Year Plan11 resolution. There's a different12 attachment that reflects the changes that13 we've made to the plan, most notably the14 amendments that Mr. Agostini has gone15 through and then the amounts that show in16 the benefits line a change every year17 because of the deferrals in the repayment18 on the Pension Fund.19
Thank20 you.21 Do any of the Councilmembers22 have any questions?23 (No questions or comments.)24
Thank25 15 5/13/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 you.2 Is there anyone else that would3 like to testify?4 (No response.)5 MR. McPHERSON: Councilman6 Green.7
Thank you.11 I just would like to say that I12 look forward to working with you over the13 next year on efficiencies that we can14 wring out of our government and15 understand that that's -- I just would16 like your comment on the record about17 that portion of what we'll be working on18 over the next year.19
We also look20 forward to working with Council to find21 efficiencies throughout the government.22
This24 will conclude our public hearing.25 16 5/13/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 We will now go into our public2 meeting.3 The Chair recognizes4 Councilwoman Tasco regarding Resolution5 No. 090226.6
Madam7 President, I offer an amendment to8 Resolution 090226.9 (Motion duly seconded.)10
It11 has been moved and seconded that the12 amendment to the resolution be adopted.13 All in favor will say aye.14 Those opposed?15 The ayes have it and the motion16 carries.17 Councilwoman Tasco?18
I move19 that the resolution, as amended, 090266,20 be reported out of committee.21 (Motion duly seconded.)22
It23 has been moved and seconded that24 Resolution 090226, as amended, be25 17 5/13/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 reported out of committee.2 All in favor will say aye.3 Those opposed?4 The ayes have it, and the5 motion carries.6 The Chair recognizes7 Councilwoman Tasco regarding Bill No.8 090212.9
Madam10 President, I offer an amendment to Bill11 No. 090212.12 (Motion duly seconded.)13
It14 has been moved seconded that the15 amendment be adopted.16 All in favor will say aye.17 Those opposed?18 The ayes have it, and the19 motion carries.20 Councilwoman Tasco.21
Madam22 President, I move that Bill No. 090212,23 as amended, be reported out of committee24 with a favorable recommendation and that25 18 5/13/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 the rules of Council be suspended so that2 this bill can be read at Council's next3 session.4 (Motion duly seconded.)5
It6 has been moved and seconded that Bill No.7 090212, be reported out of committee with8 a favorable recommendation, as amended,9 and that the rules of Council be10 suspended so as to permit first reading11 at our next session of Council of.12 All those in favor will say13 aye.14 Those opposed?15 The ayes have it, and the16 motion carries.17 The Chair recognizes18 Councilwoman Tasco regarding Bill No.19 090213.20
Madam21 President, I offer an amendment to Bill22 No. 090213. It has been circulated.23 (Motion duly seconded.)24
The25 19 5/13/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 amendment was introduced and seconded.2 All in favor of the adoption of3 the amendment will indicate by saying4 aye.5 Those opposed?6 The ayes have it, and the7 motion carries.8 Again, the Chair recognizes9 Councilwoman Tasco.10
Madam11 President, I move that Bill No. 090213,12 as amended, be reported out of committee13 with a favorable recommendation and that14 the rules of Council be suspended so that15 this bill may be read at the next Council16 session.17 (Motion duly seconded.)18
It19 has been moved and seconded that the Bill20 No. 090213 be reported out of committee21 with a favorable recommendation, as22 amended and, further, that the rules of23 Council of Council be suspended so as to24 permit first reading at our next session25 20 5/13/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 of Council.2 All those in favor will say3 aye.4 Those opposed?5 The ayes have it, and the6 motion carries.7 Again, the Chair recognizes8 Councilwoman Tasco regarding Bill No.9 090214.10
Madam11 President, I offer an amendment to Bill12 No. 090214.13 (Motion duly seconded.)14
It15 has been moved and seconded that the16 amendment offered by Councilwoman Tasco17 be adopted.18 All those in favor will say19 aye.20 Those opposed?21 The ayes have it, and the22 motion carries.23 The Chair recognizes24 Councilwoman Tasco.25 21 5/13/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1
Madam2 President, I move that Bill No. 090214,3 as amended, be reported out of committee4 with a favorable recommendation and that5 a request for the suspension of the rules6 be given so that this bill can be heard7 at Council's next session.8 (Motion duly seconded.)9
It10 has been moved and seconded that Bill No.11 090214 be reported out of committee with12 a favorable recommendation, as amended13 and, further, that the rules of Council14 be suspended so as to permit first15 reading at our next session of Council.16 All in favor will say aye.17 Those opposed?18 The ayes have it, and the19 motion carries.20 The Chair recognizes21 Councilwoman Tasco regarding Bill No.22 090215.23
Madam24 President, I move that Bill No. 090215 be25 22 5/13/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 reported out of committee with a2 favorable recommendation and that the3 rules of Council be suspended so this4 bill can be read at Council's next5 session.6 (Motion duly seconded.)7
It8 has been moved and seconded that Bill No.9 090215 be reported out of committee with10 a favorable recommendation and, further,11 that the rules of Council be suspended so12 as to permit first reading at our next13 session of Council.14 All in favor will say aye.15 Those opposed?16 The ayes have it, and the17 motion carries.18 The Chair now recognizes19 Councilwoman Blackwell regarding Bill No.20 090216.21
Thank22 you, Madam President.23 I move that Bill No. 090216 be24 reported out of committee with a25 23 5/13/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 favorable recommendation and also for a2 suspension of the rules so as to be heard3 at our next session.4 (Motion duly seconded.)5
It6 has been moved and seconded that Bill No.7 090216 be reported all of committee with8 a favorable recommendation and, further,9 that the rules of Council be suspended so10 as to permit first reading at our next11 session of Council.12 All those in favor will say13 aye.14 Those opposed?15 The ayes have it, and the16 motion carries.17 The Chair recognizes18 Councilwoman Blackwell regarding Bill No.19 090217.20
Thank21 you, Madam President.22 I move that Bill No. 090217 be23 reported out of committee with a24 favorable recommendation and also for a25 24 5/13/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 suspension of the rules so as to permit2 first reading at our next session of3 Council.4 (Motion duly seconded.)5
It6 has been moved and seconded that Bill No.7 090217 be reported out of committee with8 a favorable recommendation and, further,9 that the rules of Council be suspended so10 as to permit first reading at our next11 session of Council.12 All in favor will say aye.13 Those opposed?14 The ayes have it, and the15 motion carries.16 Bill No. 090218 will be held in17 committee.18 Also Bill No. 090219 will also19 be held in committee.20 The Chair now recognizes21 Councilwoman Tasco for a motion on Bill22 No. 090220.23
Madam24 President, I move that Bill No. 090220 be25 25 5/13/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 reported out of committee with a2 favorable recommendation and that the3 rules of Council be suspended so that4 this bill can be heard at Council's next5 session.6 (Motion duly seconded.)7
It8 has been moved and seconded that Bill No.9 090220 be reported out of committee with10 a favorable recommendation and, further,11 that the rules of Council be suspended so12 as to permit first reading at our next13 session of Council.14 All in favor will say aye.15 Those opposed?16 The ayes have it, and the17 motion carries.18 The Chair recognizes19 Councilwoman Tasco regarding Bill No.20 090221.21
Madam22 President, I move that Bill No. 090221 be23 reported out of committee with a24 favorable recommendation and that the25 26 5/13/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 rules of Council be suspended so that2 this bill can be read at Council's next3 session.4 (Motion duly seconded.)5
It6 has been moved and seconded that Bill No.7 090221 be reported out of committee with8 a favorable recommendation and, further,9 that the rules of Council be suspended so10 as to permit first reading at our next11 session of Council.12 All those in favor will say13 aye.14 Those opposed?15 The ayes have it, and the16 motion carries.17 And, again, the Chair18 recognizes Councilwoman Tasco regarding19 Bill No. 090244.20
Madam21 President, I move that Bill No. 090244 be22 reported out of committee with a23 favorable recommendation and that the24 rules of Council be suspended so that25 27 5/13/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 this bill may be read at Council's next2 session.3 (Motion duly seconded.)4
It5 has been moved and seconded that Bill No.6 090244 be reported out of committee with7 a favorable recommendation and, further,8 that the rules of Council be suspended so9 as to permit first reading at our next10 session of Council.11 All in favor will indicate by12 saying aye.13 Those opposed?14 The ayes have it and the motion15 carries.16 The record will reflect that17 Bill No. 090378 is being held. Also,18 Bill No. 090379 is also being held.19 Are there any questions from20 members of the committee?21 (No questions or comments.)22
Thank23 you. We will stand in recess until the24 call of the Chair. Thank you all so25 28 5/13/09 - COMMITTEE OF THE WHOLE - FY '10 BUDGET1 very, very much.2 (Proceedings end at 4:22 p.m.)3 * * *4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 29 C E R T I F I C A T E2 I HEREBY CERTIFY that the4 proceedings of the City of Philadelphia5 Council Committee of the Whole are contained6 fully and accurately in the stenographic notes7 taken by me on Wednesday, May 13, 2009, and8 that this is a true and correct statement of9 same.10 11 12 13 __________________________________ 14 JOSEPHINE CARDILLO Registered Professional Reporter15 16 17 18 19 (The foregoing certification of20 this transcript does not apply to any21 reproduction of the same by any means, unless22 under the direct control and/or supervision of23 the certifying reporter.)24 25