Thank you, Madam President. Back to Wireless Philadelphia. I actually missed a question regarding ensuring that young people of all types will be looped into this opportunity. In the plan, there are provisions for strides that include schools and young people of all types being included. That's actually written in the plan, correct?
That is in the Wireless Philadelphia digital inclusion plan, yes.
Okay. We'll just have to presume that that is true until we get a chance to read it. Will we have a chance to read it?
Okay. All right. Thank you. 132 2/28/06 - WHOLE - BILL 060003, ETC. Thank you, Madam President.
You're welcome. The Chair recognizes Councilman Rizzo.
My day wouldn't be complete if I didn't ask you about wireless, about WiFi. Could you go back to a company that once wired Philadelphia with devices, obviously a slower technology, called Ricochet? They wired all of Philadelphia and some of the suburban counties. Our street lights are going to start to fall over if we attach many more devices to them. I was talking to someone in our street lighting department, that many of the employees don't even know what they are and when they go to change a fixture, they just throw the device away. They're energized. They're working. Don't you think at some point you need to make a decision? And I don't 133 2/28/06 - WHOLE - BILL 060003, ETC. understand how this deal was structured, but these abandoned devices are all over Philadelphia. They're all over some of the suburban communities. What is the status of Ricochet and why do we continue -- even though these machines are idle, they still consume energy because they are attached to the network, and as long as they're attached even though -- and they're transmitting something, but not a signal, that they're consuming energy. At what point are you going to put an order out or the Law Department put an order out to take all of these devices that have been abandoned in place for many, many years?
But the City was. 134 2/28/06 - WHOLE - BILL 060003, ETC.
-- them and allowed them to do what you're trying to get us to do for this new company, to attach these devices to our street light network. We have a company that has hundreds of these devices that I believe is in bankruptcy or emerged from bankruptcy that still have these devices attached. At some point, someone, and maybe you should be the one to suggest it, remove the attachments if they are -- are they legally attached still based on the business relationship we once had?
That would be a question for the Law Department. Because of the bankruptcy and the programs, I do not know what the legal implications are for removing those from the street 135 2/28/06 - WHOLE - BILL 060003, ETC. lights. I can tell you as a part of the new contract, we're very concerned about that and put tight controls in there, but because the company was under bankruptcy law, it's not an area of my expertise. We would need to ask the Law Department to respond on that.
I'd appreciate your department involving yourself with that since it is wireless technology that the City was engaged in, and even if it was before your time -- I'm not really sure of the timeline -- that if those devices are no longer required or no longer legally attached to our network, again, consuming energy that is not being billed, they should be removed, and I'd appreciate you being the point person and help me with that.
I will certainly ask the Law Department to give us an opinion on it. I'd like to see them removed as well.
Good. 136 2/28/06 - WHOLE - BILL 060003, ETC. Thank you, Madam Chair.
You're welcome. The Chair recognizes Councilman Nutter.
Madam Chair, I actually, which will be Ms. Neff's pleasure, I actually have no 10 questions for her. I have a request of the Chair upon the time that Ms. Neff is finished.
Well, I think she's finished. There's no one else to be recognized.
Madam Chair, I have been in and out of the room 18 a couple times, but I'm trying to figure out who is the highest ranking representative for the City Administration that's handling budget information requests. Normally there is a person identified. In the past, often it's been the Budget Director, but she may have left. So I'm trying to figure 137 2/28/06 - WHOLE - BILL 060003, ETC. out who is in charge of the operation.
Thank you. Mr. Maher, thanks for coming up to the table. I don't know if the Personnel Director is available. You've been here most of the afternoon?
No, I haven't. Ms. Reed had a meeting with the Mayor at 2 o'clock, so I came over in her stead.
All right. Well, we won't replay all of the Q and A from earlier today, but there was discussion about this higher education reimbursement program that apparently some of the public employees have had the 138 2/28/06 - WHOLE - BILL 060003, ETC. opportunity to participate in. Ms. Neff shares with us that it's handled by Personnel, and I guess that would be Ms. Orfanelli's department. Can you forward to the Chair some detailed information about this particular program, how do you apply for it, who is eligible, how much it costs, does the City pay, who has participated in the program each year for the last five years, where they go to school, what was the cost and the degree attained.
Yes, Councilman. I'll bring that information back to the Personnel Director and have that information forwarded.
Now, you are obviously highly skilled and extremely talented, which is why you're in the position that you're in, but you must share with me your secret. I asked you for ten things. Your pen never touched the pad and you've promised that you're going to get me the information. 139 2/28/06 - WHOLE - BILL 060003, ETC. How are you going to do that?
I would call Sharon Ortiz, the Administrative Services Director, who is able to take down questions almost verbatim from the transcript. Because the way you asked the question, Councilman, it was very quick, and I would have asked you at a break in the hearing a contact at your staff actually to get the full detail of your question.
Okay. But you understand that I asked you to come up as the representative for the Administration.
I have been paying a little bit of attention. I think Ms. Ortiz works for us.
I asked you the question. So I would like you to put it on your pad and have the information so that I can get my information from 140 2/28/06 - WHOLE - BILL 060003, ETC. you. I could have gone over and asked Ms. Ortiz that information myself.
Yes, Councilman. I can ask you please to repeat the questions then so that I can take them down and make sure I get the question.
I was in a total stream of consciousness. You expect me to repeat ten things in a row? I was on a roll. That's why I asked you to come up. You had a pad. You had a pen. Mr. Maher, is this your first time up at the table?
Not a great start. Okay. Information on the program, how do you apply, what are the criteria, how much will the City pay for, how many people have participated by year for the last five years, what schools did they attend, what degree did they attain.
I'll have to ask 141 2/28/06 - WHOLE - BILL 060003, ETC. you to go back, please, to the by year for the last five years. Then what's following that? I'm not a fast writer. I'm sorry.
I understand. Why don't we do this: We have many other folks to get up to the table. You and I can talk across the rail.
You're welcome. Do we have any other questions or comments from members of the Committee? (No response.)
Ms. Neff, good luck. When do you go in? 142 2/28/06 - WHOLE - BILL 060003, ETC.
Our next witness? MR. McPHERSON: The Mayor's Office of Community Services.
Good afternoon. Kindly identify yourself for the record and proceed with your testimony.
Good afternoon. My name is Ralph Blakney, Executive Director of the Mayor's Office of Community Services. President Verna, other members of City Council, for Fiscal Year '07, the Mayor's Office of Community Services is requesting an appropriation of $23,823,964.
Is that your testimony? We do have a copy 143 2/28/06 - WHOLE - BILL 060003, ETC. of it.
That would be fine. That would be fine. We'd appreciate that.
Yes. President Verna, the Mayor's Office of Community Services is also known as the agency that's responsible for working with low-income people in the City of Philadelphia. We do this through a number of ways, and, that is, by coordinating resources. We also run a number of programs directly, as well as support the operation of programs in other City agencies as well as other non-City entities. I would like to just call your attention to the last bullet of the testimony. There's one number there that needs to be corrected, and, that is, the bullet where it says 966 fathers in the last bullet. I just wanted to clarify 144 2/28/06 - WHOLE - BILL 060003, ETC. something, and, that is, that the bullet reads "Fatherhood Initiative, $350,000 from the Commonwealth's Act 148 child welfare award to DHS, a program to support upwards of 966 fathers who are behind in child support through workshops and other programs." The clarification is that the program does not only service fathers, but it services mothers also. So rather than say "fathers," I'd like to change that to clients, and that number 966 should actually be 600.
And not fathers. Okay. Mr. Blakney, how many employees did you have in FY06?
I'd like to call up the liaison from the MDO to the Mayor's Office of Community Services, Mr. Tom Schaeffer.
145 2/28/06 - WHOLE - BILL 060003, ETC. Mr. Schaeffer, please approach the witness table. Is Mr. Schaeffer here? Oh, it's not Mr. Schaeffer. Hello and welcome.
No. No. Good afternoon, President Verna, Council. My name is Julia Danzy, Director of Division of Social Services, under which MOCS is one of our programs. I was going over this earlier in terms of the personnel that we have, and hopefully I can find that sheet. There's a total on MOCS' budget of 210 as of --
This is for what we budgeted for in '07. So it is as of February '06.
And 146 2/28/06 - WHOLE - BILL 060003, ETC. how many?
210. However, the reality is that some of those are mixtures in other programs and that for those who work directly with MOCS, that total number is really 93 as of 2/1/06.
They're assigned to programs that are funded through other grants, such as with the Department of Human Services, such as with the Department of Health, persons we have identified to work with those programs, persons who are working like in supportive works, which is under the Managing Director's Office, but they are all under MOCS because they're identified on their payroll as being monies coming through MOCS.
Okay. Thank you. You might as well stay up there just in the event that there's any other questions. 147 2/28/06 - WHOLE - BILL 060003, ETC. Mr. Blakney, can you explain what the Supported Work Program is and how you spend the $1.8 million?
The Supported Work Program is also akin to Welfare to Work. It's basically a job preparation, job placement program. The clients are referred from the County Assistant's Office, Department of Public Welfare. The clients come in. They receive an orientation. There are trainings and workshops that they undergo in preparation for work. There's a number of supports, including clothing and other things they may need to be ready for work. The program is basically broken down into three components. That's case management, job retention and job development. There's also a newer component, which is basically to work with those people who are less ready than those who we ordinarily have been receiving as referrals from the County 148 2/28/06 - WHOLE - BILL 060003, ETC. Assistant's Office.
I would like to bring up Mr. Leon Simmons. He is the actual director of that program and he can speak to the details.
The answer to your question for 2005-2006, the number is 200.
And do you track their work history after they leave your program?
Yes. That's actually one of our strongest components. The history of the MOCS Supported Work 149 2/28/06 - WHOLE - BILL 060003, ETC. Program involves placement of people, placing our customers into employment, but, more importantly, assuring that the employment that we've put them in will be self-sustaining employment.
Well, of the 200, if you did tracking, can you tell us how many of them remained?
That would be very interesting. Mr. Blakney, you talked about the Clients Initiative rather than the Fatherhood. Can you go into a little detail on that, please? What is that?
You said rather than call it Fatherhood Initiative --
I was not -- I'm sorry if I did not explain the change correctly. The actual testimony that you 150 2/28/06 - WHOLE - BILL 060003, ETC. received basically indicates that the program provides services to fathers, and the reality is that there are mothers. There are women who have also been referred to the program and have participated in the program.
All right. Tell us a little about the program, if you will.
The Fatherhood Initiative Program, the history is that this is a program locally, which is part of a national initiative called the National Fatherhood Initiative. They basically use a curriculum, a certified curriculum, which is being used in other cities, to prepare non-custodial fathers primarily and now non-custodial fathers and non-custodial mothers to have better relationships with their children. We began this program several years ago working in shelters. As we began working in shelters, because there was a lot of non-custodial fathers there 151 2/28/06 - WHOLE - BILL 060003, ETC. who were actually reaching out for help in relating to their children, it did not take long before we developed a relationship with the Philadelphia family court, and since that time, the majority of the clients have been referred from family court. I believe it's now upwards of 80 percent of the clients enrolled in the program are being referred through family court. And so initially it was basically to teach the curriculum. The clients actually participated in 15 different workshops about parenting. As 16 we began working with the clients around parenting skills, we also noticed that there were a number of other issues that the clients came with. It's quite natural to understand that if they were being referred from the courts, that they were coming with issues of child support. They were also coming with transportation issues. Many of the people who were coming were not paying support because 152 2/28/06 - WHOLE - BILL 060003, ETC. they were unemployed. And so the program actually took on a lot of dimensions over time, to the point where job assistance is part of the program. Case management is also part of the program, as well as helping them to meet the critical needs that they have which may prevent them from finding jobs, such as clothing.
What is the average age of the clients that you serve in this program?
That, I don't know. I can get that for you. I don't know if the director of the program, who is here, has that information readily.
I'd like to bring up Mr. Gilbert Coleman, who is the Director of the Fatherhood Initiative Program.
Is he here? 153 2/28/06 - WHOLE - BILL 060003, ETC. Good afternoon. Please identify yourself for the record.
Good afternoon. I'm Gilbert Coleman. I'm Director of the Fatherhood Initiative Program for the Mayor's Office of Community Services.
The Parenting Initiative Program for the Mayor's Office of Community Services.
I thought it was clients. What are we calling this program? Clients Initiative? Parents Initiative? What is it?
And did you indicate how many clients we have 154 2/28/06 - WHOLE - BILL 060003, ETC. serviced in the year?
And do you have the breakdown as to how many of them were men, how many were women?
I think it is the Fatherhood Initiative. Okay. Thank you. The Chair recognizes Councilwoman Brown.
Thank you, Madam President. How much time is left on the 155 2/28/06 - WHOLE - BILL 060003, ETC. Fatherhood Initiative piece? I see here you have $350,000. So that actual grant period ends when?
Well, that grant would go until the end of our fiscal year, and then that would be the decision of whether or not -- which it is being continued into the next fiscal year. So it goes like our needs-based budget in terms of -- because that funding comes from DHS and Act 148.
So do you have to reapply for it at the end of the fiscal year based on performance?
Yes, in the sense that DHS, as they look at all of their overall priorities, has to submit and determine whether or not that can be approved for funding.
And you mention that Philadelphia family court is 156 2/28/06 - WHOLE - BILL 060003, ETC. one referral. DHS, I would presume, is another referral source?
What linkages do you have with faith-based institutions here in town; namely, with the Administration's faith-based initiative? Any linkage at all?
There's presently no linkage at all as far as referrals are concerned.
We measure success with a post and pre-assessment. We also look at whether the person has moved forward in self-sufficiency, whether they've completed our 12-session workshops on parenting, whether they completed our job assistance training. Also, we look at whether they had completed our money management workshop.
So all those are criterion for whether or not 157 2/28/06 - WHOLE - BILL 060003, ETC. that particular individual has been successful at the end of the program. Is that what I'm hearing?
On of the testimony, there's a lot of discussion of Katrina. However, I could not determine how those efforts were funded. Who or what paid for the enormous response that the City had with regards to Katrina?
MOCS was one of the many departments that participated in that effort, which was, I believe, coordinated under the auspices of the Managing Director's Office.
I'm very much aware of that. I was curious to know, however, how were those efforts paid for? Were those dollars pulled from LIHEAP?
No, they were not. Basically, the services that were provided were more in staff time and 158 2/28/06 - WHOLE - BILL 060003, ETC. coordination of volunteers, that kind of thing.
I see. Moving to the LIHEAP piece, any tie-in or linkage with Lance Haver and the work they have been doing around the recent CITGO deal?
I don't know what that deal is, but I can tell -- let me just say this -- oh, I know what deal you're talking about. Right. Okay. We are very much involved with Lance Haver. In fact, the weatherization program, the LIHEAP, the PGW that you'll see here, all of those initiatives, we sat together, because that is one of the hallmarks right now of DSS, which is integrating our services with other programs within the City. And so what we did was, we coordinated and took some of our money to work them, tried to find 159 2/28/06 - WHOLE - BILL 060003, ETC. ways that we could also fund some of the energy pieces and kind of did a full program, with MOCS having a segment in that overall programming.
So given the large numbers of citizens in our City who were struggling with paying of bills, can Lance Haver speak to how the agreement arranged with CITGO -- and I don't remember the details; I only know it was huge -- has made a difference for how many more families who have been struggling with paying their water bills?
Good afternoon, Councilwoman Blackwell. My name is Lance Haver. I'm Director of Consumer Services for the City. And it's nice to be identified with such a wonderful program, but I think I should be more straightforward. It is Congressman 160 2/28/06 - WHOLE - BILL 060003, ETC. Fattah and former Congressman Kennedy that made all the arrangements. I was just helpful to them. We hope that we will bring low-cost heating oil to 20,000 families as a result of that, but I would just like to point out that because Council took the leadership in making money available, the City of Philadelphia did something that was unique in the country. After the Katrina hurricane disrupted natural gas and the gas prices really doubled, the City of Philadelphia went out and held a number of conferences and did a number of things, which I'd like to review, because it wouldn't have been possible without this Council. The first thing they did was reach out to all of the City services, all the DHS workers, all the contracted workers, to make sure that they all knew to tell their clients about Crisis and LIHEAP grants, about the CRP program at the Gas Works and about the heating oil 161 2/28/06 - WHOLE - BILL 060003, ETC. co-ops. This was before the Congressman had reached the deal with CITGO. Second, PGW, the MOCS and the energy coordinating agencies worked together to sponsor over 200 weatherization workshops, which the City allocated funds for for the plastic, the weather stripping and the radiator reflector sheets. At this point, I don't have a final number. We haven't finished counting, but at this point, it appears that we have reached 13,000 families. We don't know how successful the program will have been yet. Every one of those families signs up. Every one of them that uses natural gas, we have an agreement that the Gas Works is going to look and see how much energy was actually saved so we can see if it was done in a cost-effective basis. I hope to be back before you next year and be able to tell you how successful it was and what changes we made based on that. 162 2/28/06 - WHOLE - BILL 060003, ETC.
Were the workshops a new effort because of the pending crisis of the rising gas rates?
There had always been workshops. This was the first time there were so many of them and it was the first time that the City supplied the material so that families could get them at no cost. In addition, there's the traditional programs that are going on. The City also made available for the first time its PHIL-Loan and Mini PHIL-Loan Plus for middle-class families to have access to low-cost capital, and Treasurer Casey along with Senator Fumo set up a weatherization fund for the state, again, for middle-class taxpayers to be able to borrow money to put in energy-efficient systems. So the MOCS played a very central role in doing that. We could not have done the outreach. We could have not done as many weatherization workshops 163 2/28/06 - WHOLE - BILL 060003, ETC. as we did. I believe that they were effective, judging by the number of people we reached, but how much energy we saved and how cost-effective it was, I ask you to understand that I don't have those numbers and I will not have those numbers by the end of this budget year. I will not have them until the summer.
So then it would be premature to grade the efforts around the number of workshops and the number of families that benefited from what you just described?
I think that would be accurate. I would like to hope that you would believe that you would ask us to do better again next year and that every year we come before you, you ask us to do better than we did the year before. But the effort was there. It was unique. If you looked around the country, the City of Philadelphia did more than any other city in America. We were successful in lobbying the state for 164 2/28/06 - WHOLE - BILL 060003, ETC. the first time in the history of the state of Pennsylvania. There was a LIHEAP allocation done. We were not successful at getting an increase in the federal LIHEAP allocation. That was a struggle we put up that we lost, and, again, I believe I should tell you the good and the bad. We lost that struggle. We had believed that the federal LIHEAP allocation would be raised as a result of Katrina. That did not happen, and, unbelievably, energy prices have quadrupled since this President took office. The number of people living in poverty has increased, and the federal LIHEAP allocation has remained the same. So that is why the City had to do so much more than it had done in the past.
And should we clarify that further. "We" is "we" municipalities around the City, not just "we" Philadelphia lost, correct?
That's correct, yes. But the heating oil that 165 2/28/06 - WHOLE - BILL 060003, ETC. Congressman Fattah and former Congressman Kennedy put together helps the entire Delaware Valley. The only city in our region that did the weatherization workshops was funded by the City Council and by the City.
And then, finally, you say we hope to reach 20,000 families. What is the status?
We have reached at last count -- and I'm about three weeks behind, but at last count, we were at 13,000. This year for the first time in the Heater Hotline Program that we run, and I think you'll hear about later, when we go out and fix somebody's heater, we also weatherize their home. We are up to doing -- we are budgeted to do 5,000 of those, but we are not finished doing them, and I think that we will reach our budget number, but that is a service people call in. So that number is not finished, which is why it's hard for me to give you a complete count. 166 2/28/06 - WHOLE - BILL 060003, ETC.
Any ties with the Philadelphia Corporation of Aging, the seniors? And this comes from doing senior forums in the fall of the year where many of them are at a loss. Even in calling Philadelphia Corporation of Aging, they end up worse off than the phone call initially made.
The answer is, not as much as we would like. PCA did their own fundraising this year. They did work with the United Way to do some weatherizations. We did not do as good a job as what we think we can do in the future. I'm told that the MOCS did six workshops for the seniors.
So is that to discuss then that a plan is being discussed at least to strengthen the relationship with Philadelphia Corporation of Aging since they are principally in the business of servicing seniors?
The answer is yes. 167 2/28/06 - WHOLE - BILL 060003, ETC. The other thing that we're not sure whether we should have done and we're going to be looking at is, we did not put in what's called a set-back thermostat that automatically turns the temperature down at night. There are other test models where that's been tried. They're much more expensive than the other treatments we've done, and they have some retail value. So if you were to be given one and you decided to sell as opposed to use it, you would be putting some money in your pocket. So we have some questions about whether that's the best use of our funding, of our taxpayers' funding. So we're looking at that model where it's been tested to see whether that savings is significantly more significant than what we've been doing and whether it will be cost-effective. That seems to be a much better model for seniors than asking them to put up plastic. Frankly, there are a lot of people, like myself, who 168 2/28/06 - WHOLE - BILL 060003, ETC. don't want to ask seniors to get on ladders to put up plastic.
Where are you housed? Where do you do all of your good work?
Well, I'm downstairs, but all of these workshops happen throughout all of the Council regions, throughout all parts of the City. Again, half of them were done through the MOCS, and the MOCS really did a tremendous share of the work.
Well, I wanted to go on record to commend you and MOCS and everyone else that played a role and has played a role in doing what the City can to make sure that families are warm, period.
Councilman, if I might, before Mr. Haver 169 2/28/06 - WHOLE - BILL 060003, ETC. goes, I certainly would like to say thank you as well. Thank you for taking care of a case on me Friday afternoon when everyone was gone. And certainly the weatherization programs that the MOCS office had been involved in have really gone well. They've gone very well in the community. We really do get complaints from PCA, and maybe it is funding. I don't know, but we've been getting complaints for the last few years about them and even how people are treated. Maybe it's frustration. I don't know. But we are happy that the MOCS office has picked up that banner, and we commend them, because they're doing a great job.
One question regarding the Foster Grandparent Program. Do the staff with this program currently work with experienced core at 170 2/28/06 - WHOLE - BILL 060003, ETC. Temple University, which is in the business of bringing in retirees and placing them in schools around the City or affiliated with youth programs? Just talk about the Foster Grandparent Program.
Yes. I'll just ask Phyliss Royal to come up. Ms. Royal can actually answer that question in detail.
Good afternoon. Phyliss Royal, Director of the Foster Grandparent Program. The answer to your question is no, we do not recruit from experienced core.
Well, I would like to suggest that they are a terrific group in the business of taking seniors, retirees, former professionals, teachers and the like who still are committed to giving back and particularly want to work in schools. They would be an excellent partner in terms of 171 2/28/06 - WHOLE - BILL 060003, ETC. enhancing what you do already with the Foster Grandparent Program.
Yes. I'm very familiar with that program. However, our program does have income limits that the experienced core does not.
So we do share in our federal funding. We're under the same umbrella. So I'm very familiar with that program.
How many young people are currently involved with the program, Foster Grandparent Program?
How many young people are currently involved with the program?
What we do is, we recruit low-income senior citizens to work in communities, local communities, such as Head Start, hospitals, daycare centers. For Fiscal Year 2005, we served 172 2/28/06 - WHOLE - BILL 060003, ETC. approximately 10,000 children who had special exceptional needs.
I haven't been a former social worker. "Served" is a big word. What does that mean?
That means that these seniors engaged children on a daily basis, assisting them in one-on-one activities or in small group activities, providing that consistent care on a daily basis so that they can improve in targeted areas that the teacher may see as they need to strengthen. So depending on the targeted areas, that's what the volunteer would help on a daily basis.
Finally, when you say "targeted areas," is there any linkage with the Mayor's Youth Violence Prevention Project? Because that also is about targeting communities where we know there are a high incidence 173 2/28/06 - WHOLE - BILL 060003, ETC. of youth violence. Any linkages with that initiative?
There are no 5 linkages there. That's something that we can look into, but at this time, there are no linkages.
In fact, let me just add on to that. That is indeed -- we are right now in the process of some transformation and reorging within MOCS, because that is indeed one of the high priorities, and we want to attach community engagement pieces and all of our programs that would be appropriate for working in concert within those programs, so that AVRP, MOCS, Police Peace, we're all doing that together in terms of the community engagement.
Thank you. Thank you very much. Thank you, Madam Chair.
Thank you very much. Any further questions? 174 2/28/06 - WHOLE - BILL 060003, ETC. (No response.)
Thank you, gentlemen and ladies. Thank you. MR. McPHERSON: The next department to be heard from is the Mayor's Office of Housing and Community Development.
Thank you. We welcome you and ask you to identify yourselves for the record and begin your testimony. MS. McCOLLOCH: Good afternoon, Councilwoman Blackwell.
Good afternoon. MS. McCOLLOCH: I am Deborah McColloch, Director of Housing. I am here today to present testimony on the Office of Housing and Community Development's proposed operating budget for Fiscal Year 2007. 175 2/28/06 - WHOLE - BILL 060003, ETC. The proposed operating budget under the Community Development Fund, Grants Revenue Fund and General Fund also will be presented in the spring to the Finance Committee in its hearing on a Council bill on the Consolidated Plan authorizing the Community Development Block Grant known as CDBG and other housing programs for Fiscal Year 2007 known as our CDBG Year 32. Ideally, the Consolidated Plan hearing should occur prior to the consideration of the operating budget by City Council. However, as in the past 13 years, the budget calendar has been accelerated and the hearings are reversed. Should the results of the Consolidated Plan hearing require adjustments to OHCD's operating budget as adopted by Council, there will be ample time subsequent to the adoption of the Consolidated Plan to amend the operating budget. The complete Fiscal Year 2007 proposed budget will be presented as part 176 2/28/06 - WHOLE - BILL 060003, ETC. of the Consolidated Plan hearing. 3 million cut in its CDBG award. For the upcoming fiscal year, the award will be cut by another $6 million. However, this proposed operating budget does not reflect the total decrease, as the award notification from HUD was received subsequent to the budget submission. The changes will be detailed in the Preliminary Consolidated Budget submitted for Fiscal Year 2007. 4 million in the General Fund. This operating budget represents the costs for all housing programs as well as salaries for all OHCD, Philadelphia Housing Development Corporation, known as PHDC, and Redevelopment Authority, RDA, staffs, 177 2/28/06 - WHOLE - BILL 060003, ETC. rents, materials and supplies. 8 million reflects an increase of 119,726 compared to our Fiscal Year 2006 original appropriations. This is due to a non-represented two percent wage increase not budgeted in 2006 and a three percent non-represented wage increase for 2007 and does not include an allowance for any represented negotiated wage increase and will support the funding of 67 requested positions. In addition to the above comparison, our Fiscal Year 2007 Class 100 request does include an additional $13 million reserve provision for any housing agency reorganization. To the extent that these funds are used, an equal amount will not be released in Class 250 for other housing counseling agencies. As you know, there has been some discussion of reorganizing the three housing agencies to achieve greater 178 2/28/06 - WHOLE - BILL 060003, ETC. efficiency in the delivery of housing services. This reserve provision will allow funds to be allocated to support additional staff at OHCD, if necessary, as part of an approved housing reorganization. 5 million. 2 million in allowing for the carryover of prior years entitlement; and a General Fund increase of million resulting in a 179 2/28/06 - WHOLE - BILL 060003, ETC. million compared to our Fiscal Year 2006 original appropriations level. As discussed earlier, the award notification from HUD was received subsequent to this budget submission, and our Class 200 request does not include in total the following award changes: A decrease in federal CDBG funding of 6 million; a decrease in federal housing opportunities for persons with AIDS, known as HOPWA, funding of 253,000; a decrease in federal HOME investment partnerships, HOME, funding of 921,346; and a decrease in federal American Dream Downpayment Initiative funding of $201,788. In Class 300, our Fiscal Year 2007 estimated obligations of 166,000 remained constant, as compared to our Fiscal Year 2006 original appropriations. In Class 400, our Fiscal Year 2007 estimated obligations of 35,000 remained constant, as compared to our Fiscal Year 180 2/28/06 - WHOLE - BILL 060003, ETC.
2006 original appropriations. In Class 500, our Fiscal Year 2007 estimated obligations decreased by million, as compared to our Fiscal Year 2006 estimated obligations. million from the state. Appropriations are also being requested to provide funding for the Section 108 loans in the amount of million and million for Interim Construction Assistance and Bridge Loan programs respectively, should funding become available in amounts similar to prior years. Although the latter two sources may not become available, OHCD is requesting authority so that we will be in a position to administer the funds if received in Fiscal Year 2007. The General Fund programs, funding and service goals are as follows: 181 2/28/06 - WHOLE - BILL 060003, ETC. One, provide operating support for rental assistance for the homeless, and our General Fund request is 117,000. A combined total of 131 units of rental assistance is provided in Fiscal Year 2006 with the same level in Fiscal Year 2007. And, No. 2, the additional 1,270,256 for Fiscal Year 2007 includes 10,000 for Elderly Vacancy Prevention related services, 16,231 for OHCD arbitration services, 1 million for greening, and 244,025 for five employees in program services. The proposed Fiscal Year 2007 operating budget will allow OHCD to continue to provide housing programs such as the Basic Systems Repair Program, subsidies for rehabilitation and new construction, housing counseling and other core programs. The City's proposed plan for spending the Community Development Block Grant, as well as other monies, is to be detailed at length at 182 2/28/06 - WHOLE - BILL 060003, ETC. the Finance Committee's hearings on the Consolidated Plan. However, I will be happy to answer any questions which Council may have today as well. Thank you.
Thank you very much. You refer on at the top of the page that there's a, quote, "$13 million reserve provision for any housing agency reorganization." Now, I want you to expound on that. Does this mean that the Administration is hoping to save 13 million in salary expenses, or what can you detail to us about this $13 million? MS. McCOLLOCH: No. It's not a savings of 13 million. It is reserving funds in Class 100 of 13 million if there's a housing agency reorganization which would need additional funding in Class 100, which would mean additional employees of the City. The same amount would not be released in Class 250, which 183 2/28/06 - WHOLE - BILL 060003, ETC. would be the funds that would be used for other agencies. It's in the separate class, because those are contracted agencies, such as PHDC or the Redevelopment Authority. So this budget provides authorization in both Class 100 and Class 250 to allow for funds to be placed in either class, but they would be decreased from the class that they're not used in and put into the class that they would be used in.
One of the questions we asked, we've had three hearings so far with regard to this housing reorganization, and one of our questions -- because every time we call a hearing, these Chambers are filled with employees who don't have a contract that didn't get one last June and are wondering where they stand and certainly are concerned about where they are placed due to the fact that they could have to start their City investment time all over 184 2/28/06 - WHOLE - BILL 060003, ETC. again if they're moved in and out of various departments. How does this $13 million fit into that? MS. McCOLLOCH: This $13 million will either be funded under Class 100 or under Class 250. It won't be funded twice. This budget authorization allows the funds to either be under Class 100, which would be the class for City employees if people were moved to City employment, or it allows the funding to remain at Class 250, which is where funding would be in this case for PHDC or the Redevelopment Authority. But it won't be spent twice, if you will. It will either be spent in Class 250 or in Class 100.
Are you then saying that the total budget for RDA and PHDC is this $13 million? MS. McCOLLOCH: Those are the personnel costs.
So 185 2/28/06 - WHOLE - BILL 060003, ETC. this then assumes that in the proposed reorganization there would be then no 4 layoffs. How does that fit in? We've been concerned. Let me ask it another way so that maybe I understand your response. We asked the Administration about transferring people laterally. People are concerned who work for the City that they could be downgraded, they could make less salaries, they'd have to start all over with benefits, et cetera. Where does the 13 million fit in in terms of that question? MS. McCOLLOCH: The 13 million doesn't fit in in either case in that question. Thirteen million is -- I'm trying to know how to describe it in a way to make it clear. The 13 million is in this budget shown as a reserve in Class 100 and it's also shown in Class 250. If the funds are needed in Class 250, the reserve fund of Class 100, which is the 186 2/28/06 - WHOLE - BILL 060003, ETC. City class, it would not be spent. It's simply allowing it to be spent in Class 100. If the funds are needed in Class 100 and not 250, it will be spent in 100 and the money won't be in Class 250. So this million doesn't have 8 any application to that. 9
So, in 10 other words, you don't know how this 11 affects the number -- or do you? Do you 12 know how this affects the number of 13 employees you have now, those who could be transferred and are transferred out of your department? MS. McCOLLOCH: This number does not address how employees would be transferred between agencies, if that happens.
No 21 funds are requested for employee benefits. Why, and who pays the cost of these benefits? MS. McCOLLOCH: With me today is Roderick Lyles, who is the Director of 187 2/28/06 - WHOLE - BILL 060003, ETC. Finance for the Office of Housing and Community Development. He may be able to answer and tell us what page that would be on.
In addition to what OHCD would normally request for our fringe benefit cost for its current personnel or current employees, we did allow for an additional appropriation of, I believe it was, 6 and a half million should the 13 million that might impact the consolidation become a reality. There is an additional appropriation reflected to occur.
The fringes are included in the Finance Department's budget. It would not show -- because the assumption then would be that the 188 2/28/06 - WHOLE - BILL 060003, ETC. individuals will be on the City's payroll roster. So the benefits would be budgeted within the Finance Department.
As opposed to what? You said in the City's. As opposed to what? Redevelopment Authority? Is that what you're saying?
Yes. That's correct. We made an allowance on the fringe benefit side to also cover the $13 million in personnel costs, should that occur, and the RDA, PHDC employees become a part of the City's payroll system.
Have either of you been told that this reorganization will occur? MS. McCOLLOCH: It's being reviewed now and it's the Mayor's plan, and when the Mayor is prepared to move forward with it, I believe there will be an announcement about that.