COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING COMMITTEE ON FINANCE - - - Room 401, City Hall Philadelphia, Pennsylvania Wednesday, March 6, 2002 2:20 p.m. - - - BILL 020047 - an Ordinance amending Chapter 19-200 of the Philadelphia Code... BILL 020048 - an Ordinance amending Chapter 19-200 of the Philadelphia Code... - - - PRESENT: COUNCILWOMAN JANNIE BLACKWELL, CHAIR COUNCILWOMAN MARIAN B. TASCO COUNCILMAN FRANK J. DI CICCO COUNCILMAN WILSON W. GOODE, JR. COUNCILMAN MICHAEL A. NUTTER - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 (215) 561-2220 I N D E X BILL 020047 PAGE JOSEPH FARALDO, Acting City Treasurer ......... BILL 020048 JOSEPH FARALDO, Acting City Treasurer ......... 9 3 3/6/02 - FINANCE - BILL 020047
Good afternoon. We thank all that are here for Finance Committee. Today we will hear Bill Nos. 020047 and 020048. Bill No. 020077 is being held at the request of the sponsor. For the purposes of a quorum, to my left we have Councilman DiCicco, Councilman Goode is also sitting in on our Finance Committee today. We thank him. To my right is Councilman Nutter, and I'm the Chair Jannie Blackwell. Councilwoman Tasco, vice chair, is here. And we will begin our testimony. Will the Clerk read the title of Bill 14 No. 020047?
Bill No. 020047, an Ordinance amending Chapter 19-200 of the Philadelphia Code, entitled "City Funds - Deposits, Investments, Disbursements," by amending Section 19 19-201, entitled "City Depositories," by requiring a statement of community reinvestment goals for low and moderate-income neighborhoods in the City of Philadelphia.
Thank you. We will have the Acting City Treasurer, Joseph Faraldo testify. 4 3/6/02 - FINANCE - BILL 020047 Denise Earley, Chamber of Commerce has submitted written testimony that all of you should have received and that will be submitted to the stenographer and considered for the record. Thank you. Please identify yourself and begin your testimony. Thank you both for coming.
Good afternoon, Chairwoman Blackwell and Members of the Finance Committee. I am Joseph Faraldo, Acting City Treasurer. I'm here today to testify in support of Bill No. 020047 that amends Section 19-200 of the Philadelphia Code to require all City depositories to provide a statement of Community reinvestment goals for low and moderate-income neighborhoods in the City of Philadelphia. Having reviewed this legislation, it is my understanding that the legislation merely requires all City depositories to provide information on their respective community reinvestment goals. It is an effort to evaluate whether the banks that we use are committed to investing in our neighborhoods and in our City. Such an effort is important and meaningful and 5 3/6/02 - FINANCE - BILL 020047 complements the Administration's efforts to support neighborhoods and communities. The Treasurer's Office does not expect this change to add any significant administrative burden to regular duties. Therefore, we offer our support for this legislation. Thank you for the opportunity to appear before this Committee today and I would be happy to answer any questions the Committee may have at this time.
Thank you very much. Once passed, how does your office plan implement the legislation? Will it be part of the annual report or the City's quarterly financial statements?
Madam chairwoman, my first impression would be that we would probably coordinate this with the annual reporting requirements of the banks.
Who will monitor to see if the City depositories are meeting the goals stated? And what would the consequences be for not meeting said goals?
Chairwoman Blackwell, what 6 3/6/02 - FINANCE - BILL 020047 I would like to do is perhaps have a discussion with the appropriate Members of City Council or this Committee to determine exactly what we may require and who the interested parties might be so that we can get the information we would be interested in and sharing it with the appropriate people.
Thank you. Finally, are depositories required to invest in all communities or only those where they have branches? As you know, in many low-income neighborhoods now there are no banks at all.
I don't know that there is currently any mandated requirement for the banks to invest in the community by the City. There are federal and state regulations that require the banks to report to them these type of activities and they're rated based on their activities or contribution in these communities.
Thank you very much. Are there questions from other Members of the Committee with regard to Bill No. 020047? Councilwoman Tasco.
Good afternoon. 7 3/6/02 - FINANCE - BILL 020047 You may or may not be able to answer this question. But in terms of this, how do we identify -- what are goals?
Again, I think from my perspective, this is one of the pieces of information I would like to discuss with Members of City Council and the Administration, the agencies and departments that would be most interested in this information so we can work as a team in our discussions with the banks to accumulate this information.
Madam Chair, I understand the sponsor of this bill, Councilman Goode, wants to respond.
In terms of goals, it is language that was used in the State Reinvestment Act of 1993. The House actually passed a very detailed elaborate form. There has since has been legislation that does not allow us to go as far, so we left it very broad for the banks to actually simply tell us what their goals are. So those goals have not been defined. 8 3/6/02 - FINANCE - BILL 020047 To answer Councilwoman Blackwell's question earlier, too. There is a mechanism of the Finance Department to help this process along through the Philadelphia Community Reinvestment Commission which was placed under the Finance Department.
Are goals defined in percentages, or would you be seeking to have them identify specific projects that they would do?
We're not specifying yet, but in terms of how they already do their community reinvestment goals. This is information which banks normally do. They just don't necessarily give it to us in terms of the information. We're asking them to give it to us and they define in both -- information defined by percentage of the market in terms of total loans, and in addition to that, actual dollar amounts of loans and actually number of loans.
Are there any 9 3/6/02 - FINANCE - BILL 020048 other questions with regard to this bill.
Also, Madam Chair. I also have a proposed amendment, just a technical amendment. We actually used the letter "D" rather than letter "F" and forgot to italicize the wording. I think that's been circulated to Members of the Committee. It's purely a technical amendment.
Thank you very much. Any other questions? Then we will ask the Clerk to read Bill 13 No. 020048.
Bill No. 020048, an ordinance amending Chapter 19-200 of the Philadelphia Code, entitled "City Funds, Deposits, Investments, Disbursement," by amending Section 18 19-201, entitled "City Depositories," by authorizing the City Treasurer to deposit funds in Citizens Bank, under certain terms and conditions.
Good afternoon, I am Joseph Faraldo, Acting City Treasurer. I'm here 10 3/6/02 - FINANCE - BILL 020048 today to testify in support of Bill No. 020048 that amends Section 19-200 of the Philadelphia Code relating to authorized City depositories. This amendment will include Citizens Bank as a City depository and in so doing, update the list of financial institutions that the City is authorized to deposit funds. I have reviewed the financial information provided by Citizens Bank and have determined that they meet the basic criteria as required by the Code for becoming an authorized depository. Specifically Citizens Bank has been in business for the past five years, has been profitable for the last two years, is federally insured, and has over $100 million in assets. This concludes my written testimony. I am available to answer any questions you may have on this matter. Thank you.
Thank you very much. Are there questions with regard to this bill? Thank you very much. That concludes the testimony. 11 3/6/02 - FINANCE - BILL 020048 As we stated earlier, Bill No. 020077 is being held at the request of the sponsor. That will end our public hearing. - - - 12 COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC MEETING COMMITTEE ON FINANCE - - - Wednesday, March 6, 2002 - - - Public Meeting conducted by the Committee on Public Property and Public Works, held in Room 401, City Hall, Philadelphia, Pennsylvania, on the above date, to consider action on the following: BILLS 020047, 020048 - - - PRESENT: COUNCILWOMAN JANNIE BLACKWELL, CHAIR COUNCILWOMAN MARIAN B. TASCO COUNCILMAN FRANK J. DI CICCO COUNCILMAN WILSON W. GOODE, JR. COUNCILMAN MICHAEL A. NUTTER - - - 13 3/6/02 - FINANCE - PUBLIC MEETING
We will now enter into our public meeting. And we will ask Councilwoman Tasco for a motion on an amendment to Bill 020047. We would ask that you make a motion to accept the amendment to the bill.
I'm sorry, I was distracted earlier. I know Councilman Goode had raised the an issue about the amendment. I read the amendment. It seemed to be exactly what was in the bill. Is this about "D" and "F"?
Okay. So the amendment is the same exactly what's in the bill. The letter D was already used and you needed to use F and the italics issue?
Madam Chair, I move that we accept the amendment. (Duly seconded.)
All in favor of the amendment, aye. 14 3/6/02 - FINANCE - PUBLIC MEETING (Aye.)
Opposed? The amendment has been accepted. Councilwoman Tasco, would you now enter a motion for the bill as amended?
Madam Chair, I move that Bill 020047, as amended be reported out of Committee with a favorable recommendation with a request for suspension of the rules so that this bill can be read at the next session of Council. (Duly seconded.)
Opposed? Therefore, Bill No. 020047, as amended, has been reported out of Committee with a favorable recommendation and with a recommendation for suspension of the rules so that this bill may be heard at our next Session of Council. Councilman DiCicco, would you give us a motion for Bill No. 020048?
Thank you, Madam Chair. I move that Bill No. 020048 be reported out 15 3/6/02 - FINANCE - PUBLIC MEETING this Committee with a favorable recommendation, and a further recommendation that rules of Council be suspended. (Duly seconded.)
It has been moved and seconded that Bill No. 020048 be reported out of Committee with a favorable recommendation, and also a recommendation for a suspension of the rules so that this may be considered at our next Session of Council. Thank you very much. This meeting is now adjourned. (Council adjourned at 2:36 p.m.) - - - 16 C E R T I F I C A T I O N I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of March 6, 2002, were reported fully and accurately by me, and that this is a correct transcript of the same. RE: COMMITTEE ON FINANCE ___________________________ Lisa C. Bradley, RPR and Notary Public