COUNCIL OF THE CITY OF PHILADELPHIA STATED MEETING Thursday, February 3, 2000 10:05 a.m. Room 400, City Hall Philadelphia, Pennsylvania PRESENT: COUNCIL PRESIDENT ANNA C. VERNA COUNCILWOMAN JANNIE L. BLACKWELL COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN DARRELL L. CLARKE COUNCILMAN DAVID COHEN COUNCILMAN FRANK J. DICICCO COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN JAMES F. KENNEY COUNCILWOMAN JOAN L. KRAJEWSKI COUNCILMAN RICHARD T. MARIANO COUNCILWOMAN DONNA REED MILLER COUNCILMAN MICHAEL A. NUTTER COUNCILMAN BRIAN J. O'NEILL COUNCILMAN ANGEL L. ORTIZ COUNCILMAN FRANK RIZZO COUNCILWOMAN MARIAN B. TASCO MARIE HAUSER, Chief Clerk VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center, Suite 600 Philadelphia, PA 19103 GREETING/INVOCATION P R O C E E D I N G S
I note that the hour has come and that a quorum of this Council is present. Members will take their seats, visitors will retire to the seats outside the rails. To give our invocation this morning, the Chair welcomes Reverend Anderson, quarter pastor emeritus of Reed Memorial United Presbyterian Church who is here today as a guest of Councilwoman Blackwell. Members and guests will please rise.
Before I pray as pastor of the Wissinoming Presbyterian Church, I'd like to share with you the joy of seeing some of most beautiful people in the world. Will the members of my church please raise their hands. (Applause.)
Let us pray. Our Father, God, we know how to bow our heads and close our eyes, but teach us how to pray. We know how to think, but teach to us think wisely. We know how to stand, but help us to always stand tall. We know how to step, but challenge us to GREETING/INVOCATION step up to the plate, and when we come to the plate, may we always bring the very best within us. Father God, we have now to assemble and work together. When we do disagree, may we not be disagreeable. We have moved much of the snow from our driveways, our sidewalks and our streets. That enables us to move freely. Now erase the racial prejudice and homophobia and all fears from our hearts that we may all live freely. Whenever we recite the allegiance to the flag, may we really mean it when we say "and justice for all." Be with the Council President, be with Your mayor, be with members of Council all in Philadelphia. Lord, finally, somebody threw us a lemon and called us "a fat city." Help us now to make lemonade, that fat will stand for fair and trustworthy so that Philadelphians will become and remain one of great cities under Thee. In the moment of silence, always speak to us. Amen. ALL: Amen.
The Chair JOURNAL APPROVAL thanks the Reverend for his inspiring invocation,. Council will be at ease.
The next order of business is the approval of the Journal. The Chair recognizes Councilwoman Blackwell.
Thank you, Madam President. I move that the journal be approved. (Duly seconded.)
It has been moved and properly seconded that the Journal of the meeting of January 3, 2000, stand approved. All those in favor will signify by saying aye. Those opposed? The ayes have it, and the Journal of Monday, January, 3, 2000, is approved.
The next order of business is requests for leaves of absence the Chair recognizes Councilwoman Blackwell. REQUESTS FOR LEAVES OF ABSENCE
Thank you, Madam President. There are no requests for leaves of absence today on the part of Majority.
The Chair thanks the Councilwoman. The Chair recognizes Councilman O'Neill.
Madam President, on behalf of the Republicans, a leave of absence is requested for Councilwoman Thacher Longstreth.
The Chair will dispense with regular order of business to recognize the guests and visitors joining us in chambers this morning. On behalf of all members of City Council, I welcome you to our City Council session today. We appreciate your taking the time to join us as we attend to the affairs of our city, and we certainly invite you to come back again. In keeping with a practice established over the years, we have many guests and visitors VISITOR RECOGNITION today who are elected officials and heads of departments, boards and commissions, and representatives from the administration. Although I would like to single out each of you, owing to the constraints of time today, we will be unable to do so. Therefore, I would ask each of you to please stand so that we can acknowledge you with a round of applause because we want you to know that we truly appreciate the very good work that you do for all of us. At this time, I would ask all of our distinguished guests to please stand so that we can applaud you. Commissioners? (Guests stand.) (Applause.)
The next order of business is communications. The Chair recognizes the Sergeant-at-Arms for the purpose of delivering the messages from the Mayor to the Chief Clerk. The Chief Clerk will read the messages from the Mayor. Before she does so, the Chair COMMUNICATIONS recognizes Councilwoman Miller.
Thank you, Madam President. I have a class here from Martin Luther King, a law and government class, ten students in grades from 9 through 12. Mr. Hoss is the teacher, and the president of the Home Schools Associates, Mrs. Gildridge (ph.), and I just want to welcome them to City Council this morning.
Would they please stand so that we could acknowledge them. Welcome.
Now the Chief Clerk will please read the messages from the Mayor.
To the President and Members of the Council City of Philadelphia, I am transmitting herewith for the consideration of your honorable body the following: A resolution providing for the approval by the Council of the City of Philadelphia of a revised Five-Year Financial Plan for the City of COMMUNICATIONS Philadelphia, covering Fiscal Years 2001 through 2005 and incorporating proposed changes with respect to Fiscal Year 2000, which is to be submitted by the Mayor to the Pennsylvania Intergovernmental Cooperation Authority; And an ordinance to adopt a Capital Program for the six Fiscal Years 2001 to 2006, inclusive; And an ordinance to adopt a Fiscal Year 2001 Capital Budget; And an ordinance adopting the Operating Budget for Fiscal Year 2001; And an ordinance amending Chapter 19-1500 of the Philadelphia Code, entitled "Wages and Net Profits Tax" by decreasing the rate of tax; And an ordinance amending Chapter 19-1800 of the Philadelphia Code, entitled "School Tax Authorization," by amending Section 19-1806; And an ordinance amending Chapter 19-1800 of the Philadelphia Code, entitled "School Tax Authorization," by amending Section 19-1801; And an ordinance amending Chapter 19-1800 of the Philadelphia Code, entitled "School COMMUNICATIONS Tax Authorization," by amending Section 19-1804; And an ordinance amending Chapter 19-2600 of the Philadelphia Code, entitled "Business Privilege Taxes"; And an ordinance authorizing transfers in appropriations for Fiscal Year 2000 within the General Fund from certain or all City offices to certain or all City offices; And an ordinance authorizing transfers in appropriations for Fiscal Year 2000 within the Grants Revenue Fund.
The next order of business is the introduction of bills and resolutions. And at this time, the Chair recognizes Councilwoman Blackwell.
Madam President, I move that all resolutions be considered at the time of their introduction. (Duly seconded.)
It has been moved and properly seconded that the rules of Council be suspended so as to permit immediate INTRODUCTION OF BILLS, RESOLUTIONS consideration of resolutions at the time of introduction. All those in favor will signify by saying aye. Those opposed, nay. The ayes have it and the motion is carried. The Chair recognizes Councilman Kenney.
Thank you, Madam President. I offer one bill and three resolutions.
The Chief Clerk will please read the title of the bill.
An ordinance amending Title 10 of the Philadelphia Code, entitled "Regulation of Individual Conduct and Activity," to prohibit the attendance of children under the age of 6 years of age at certain movies shown at movie theater establishments after 7 p.m., under certain terms and conditions.
This bill will be referred to the appropriate committee. The Chief Clerk will please read the first resolution. INTRODUCTION OF BILLS, RESOLUTIONS
A resolution authorizing City Council's Committee on Legislative Oversight to hold hearings to monitor the actions of City officials and addressing the effects of the potentially fatal Hepatits C virus on Philadelphia firefighters who have been exposed to the virus during the course of their employment.
This resolution will be referred to the appropriate committee.
And a resolution declaring February 14, 2000, as "Firefighters Recognition Day." And a resolution authorizing City Council's Committee on Legislative Oversight to hold a hearing to examine how the City of Philadelphia and the State of Pennsylvania can work together to better ensure the safety of our children in child care settings.
This resolution will be referred to the appropriate committee. However, I would like the Chief Clerk to go back to the second resolution and read the title. INTRODUCTION OF BILLS, RESOLUTIONS
A resolution declaring February 14, 2000, as "Firefighters Recognition Day."
All those in favor will signify by saying aye. Those opposed? The ayes have it and the motion is carried. The Chair recognizes Councilwoman Blackwell.
Thank you, Madam President. This morning, I have nine tax bills and three resolutions.
Yes, three INTRODUCTION OF BILLS, RESOLUTIONS resolutions.
An ordinance to adopt a Capital Program for the six fiscal years 2001 to 2006, inclusive.
The bill will be referred to the appropriate committee.
And an ordinance to adopt a Fiscal Year 2001 Capital Budget.
The bill will be referred to the appropriate committee.
And an ordinance adopting the Operating Budget for Fiscal Year 2001.
The bill will be referred to the appropriate committee.
And an ordinance amending Chapter 19-1800 of the Philadelphia Code, entitled "School Tax Authorization," by further amending Section 19-1806 to further authorize the Board of Education of the School District of Philadelphia to impose a tax on the use and occupancy of real-estate tax within the School District of Philadelphia.
The bill will INTRODUCTION OF BILLS, RESOLUTIONS be referred to the appropriate committee.
And an ordinance amending Chapter 19-1800 of the Philadelphia Code, entitled "School Tax Authorization."
The bill will be referred to the appropriate committee.
And an ordinance amending Chapter 19-1800 of the Philadelphia Code, entitled "School Tax Authorization."
The bill will be referred to the appropriate committee.
And an ordinance amending Chapter 19-1500 of the Philadelphia Code, entitled "Wage and Net Profits Tax," by decreasing the rates of the tax.
The bill will be referred to the appropriate committee.
And an ordinance amending Chapter 19-2600 of the Philadelphia Code, entitled "Business Privilege Taxes," by decreasing the rate of the tax based upon gross receipts.
This bill will be referred to the appropriate committee.
And a resolution INTRODUCTION OF BILLS, RESOLUTIONS providing for the approval by the Council of the City of Philadelphia the revised Five-Year Financial Plan for the City of Philadelphia, covering fiscal years 2001 to 2005, and incorporating proposed changes with respect to the Fiscal Year 2000, which is to be submitted by the Mayor to the Pennsylvania Intergovernmental Cooperation Authority.
This resolution will be referred to the appropriate committee.
And a resolution honoring Rosaline Morgan, the 1999 Middle School Physical Education Teacher of the Year.
Thank you, Madam President. I move the adoption of the resolution. (Duly seconded.)
All those in favor will signify by saying aye. Those opposed? The ayes have it and the motion is INTRODUCTION OF BILLS, RESOLUTIONS carried. The Chief Clerk will please read the second resolution.
Madam President, I move the resolution be adopted. (Duly seconded.)
All in favor of the adoption of the resolution will signify by saying aye. Those opposed? The ayes have it and the motion is carried.
And a resolution authorizing the Commissioner of Public Property to execute and deliver to the Redevelopment Authority deeds situate in the 3rd, 44th, 51st, and 60th Wards of the City of Philadelphia.
Thank you, INTRODUCTION OF BILLS, RESOLUTIONS Madam President. I move the adoption. (Duly seconded.)
It has been moved and properly seconded that the resolution be adopted. All those in favor will signify by saying aye. Those opposed? The ayes have it and the motion is carried. The Chair recognizes Councilman Cohen.
The Chair thanks the gentleman. The Chair recognizes Councilwoman Krajewski.
The Chief Clerk will please read the title of the first bill, Councilwoman Krajewski's bills.
An ordinance amending Section 19-203 of the Philadelphia Code, entitled INTRODUCTION OF BILLS, RESOLUTIONS "Payroll Deductions," by adding a new provision to allow for payroll deductions by Philadelphia firefighters for insurance premiums paid to the Hartford Life Insurance Company.
This bill will be referred to the appropriate committee.
And an ordinance amending Title 14 of the Philadelphia Code relating to zoning and planning by amending Chapter 14-1600.
The bill will be referred to the appropriate committee.
And an ordinance establishing a parking regulation on both sides of the 4300 block of Belgrade Street.
The bill will be referred to the appropriate committee.
And an ordinance authorizing transfers in appropriations for Fiscal Year 2000 within the Grants Revenue Fund from the Director of Finance.
This bill will be referred to the appropriate committee.
And an ordinance INTRODUCTION OF BILLS, RESOLUTIONS authorizing transfers in appropriations for Fiscal Year 2000 within the General Fund from certain or all City offices to certain or all City offices.
This bill will be referred to the appropriate committee. The Chair recognizes Councilman Mariano.
The Chair thanks the gentleman. The Chief Clerk will please read the title of the first bill.
An ordinance authorizing Catherine Aviles, owner of the property 256-258 East Allegheny Avenue, to construct and maintain a two-story building addition onto and over the south footway of Allegheny Avenue adjacent to the property 256-258 East Allegheny Avenue.
And an ordinance establishing a no-truck-parking regulation on Eric Street, both sides, from Lefevre Street to Oakland INTRODUCTION OF BILLS, RESOLUTIONS Street.
This bill will be referred to the appropriate committee.
And an ordinance establishing a stopping regulation on Loretta Avenue at Disston Street.
The bill will be referred to the appropriate committee.
Madam President, I offer two bills and one resolution.
The Chief Clerk will please read the title of the first bill.
An ordinance amending Section 9-201 of the Philadelphia Code, entitled "City Depositories," by authorizing the City Treasurer to deposit funds in Pennsylvania Business Bank, under certain terms and conditions.
The bill will be referred to the appropriate committee.
And a resolution declaring March as "Save Your Vision Month." INTRODUCTION OF BILLS, RESOLUTIONS
I'm sorry. I believe the Councilwoman said that she had two bills.
Councilwoman, do you have two bills? There was only one submitted.
All right. The Chief Clerk, then, will please read the title of the first resolution.
Madam President, I move for the adoption of the resolution. (Duly seconded.)
It has been INTRODUCTION OF BILLS, RESOLUTIONS moved and properly seconded that the resolution be adopted. All those in favor will signify by saying aye. Those opposed? The ayes have it and the motion is carried. The Chief Clerk will please read the title of the second resolution.
And a resolution authorizing Council's Committee on Health and Human Services to hold hearings on the City of Philadelphia's welfare to work efforts.
This resolution will be referred to the appropriate committee. The Chair recognizes Councilwoman Miller.
Thank you, Madam President. I offer two bills and two resolutions.
The Chief Clerk will please read the title of the first bill.
An ordinance amending INTRODUCTION OF BILLS, RESOLUTIONS Chapter 10-600 of the Philadelphia Code, entitled "Public Places Prohibited Conduct," by adding a new section prohibiting gambling and conducting gambling operations on a public right-of-way or on property owned by the City or other public agencies.
The bill will be referred to the appropriate committee.
And an ordinance naming the tot lot located at 177-185 West Price Street "the Rosalyn Freeman and Myrtle Scott Tot Lot."
This bill will be referred to the property committee. The Chief Clerk will please read the title of the first resolution.
And a resolution authorizing the Education Committee of the City Council to hold hearing regarding the current status and future plans for the placement and education of behaviorally destructive students in the School District of Philadelphia.
This resolution will be referred to the appropriate committee. INTRODUCTION OF BILLS, RESOLUTIONS
And a resolution authorizing the Commissioner of Public Property to execute and deliver to the Redevelopment Authority a deed situate in the 11th Ward of the City of Philadelphia.
It has been moved and properly seconded that the resolution be adopted. All those in favor will signify by saying aye. Those opposed? The ayes have it and the motion is carried. The Chair recognizes Councilman Nutter.
Thank you, Madam President. I offer three bills and three resolutions. One of the resolutions is INTRODUCTION OF BILLS, RESOLUTIONS cosponsored by Councilman Kenney and I, and the other resolution is cosponsored by Councilman Cohen and I, and the third is on my own. Thank you.
Thank you. The Chief Clerk will please read the title of the first bill.
An ordinance granting permission to 6080 Ridge Avenue Corporation, Coyle's Cafe, located at 6080 Ridge Avenue to operate and maintain an open-air sidewalk cafe on the west footway of Ridge Avenue.
This bill will be referred to the appropriate committee.
And an ordinance amending Title 4 of the Philadelphia Code, entitled "The Philadelphia Building, Construction and Occupancy Code," by amending subcode P.M., "Unfit and Unsafe Structures and Equipment."
The bill will be referred to the appropriate committee.
And an ordinance amending Chapter 19-1400 of the Philadelphia Code, entitled "Realty Transfer Tax," by decreasing the INTRODUCTION OF BILLS, RESOLUTIONS rate of the tax, all under certain terms and conditions.
The bill will be referred to the appropriate committee. The Chief Clerk will please read the title of the first resolution.
And a resolution authorizing the Council Committee on Commerce and Economic Development to hold hearings on the current and future tax policy of the City of Philadelphia in order to conduct and analyze the tax rates and tax base for wage, real estate, business, sales, and other municipal taxes, and to examine the impact of current and future tax policy.
All those in favor of this resolution being referred to the appropriate committee will signify by saying aye. Those opposed? The ayes have it and the motion is carried. The Chair recognizes Councilman Nutter. You are now moving that this be referred to the appropriate committee? INTRODUCTION OF BILLS, RESOLUTIONS
Madam President, I move that the resolution be referred to the appropriate committee.
Thank you. The Chief Clerk will please read the title of the second resolution.
A resolution authorizing the Council Committee on Commerce and Economic Development to hold public hearings on proposals and strategies for a community revitalization and infrastructure renewal program for Philadelphia's neighborhoods, including, but not limited to, infrastructure repair.
All those in favor of this resolution being referred to the appropriate committee signify by saying aye. Those opposed? The ayes have it and this resolution will be referred to the appropriate committee.
And a resolution authorizing the Council Committee on Streets and Services to hold hearings on the dangers and damage caused by the deterioration of retaining walls, driveways, and alleys, and the INTRODUCTION OF BILLS, RESOLUTIONS complications involved in coordinating necessary repairs by abutting property owners.
All those in favor of this resolution being referred to the appropriate committee for a public hearing will signify by saying aye. Those opposed? The ayes have it and this resolution will be referred to the appropriate committee. The Chair recognizes Councilwoman Reynolds Brown.
Good morning, Madam President. I offer one resolution for introduction cosponsored by my colleagues Councilwoman Marian Tasco and Councilman Michael Nutter.
The Chair thanks the Councilwoman. The Chief Clerk will please read the title of the resolution.
A resolution authorizing the Council Committee on Public Health and Human Services to hold public hearings in order to review and analyze the proposals of Pennsylvania INTRODUCTION OF BILLS, RESOLUTIONS Governor Tom Ridge, Pennsylvania Senator Vincent Hughes, State House Democrats, State Senate Democrats, and all other legislative proposals for the expenditure investment and in general the use of the Commonwealth's estimated $11.3 billion settlement.
This resolution will be referred to the appropriate committee. The Chair recognizes Councilman Goode.
The Chief Clerk will please read the title of the resolution.
A resolution calling for an annual review of small business lending in the City of Philadelphia.
A resolution calling for the annual review of small business lending in the City of Philadelphia.
Councilman, INTRODUCTION OF BILLS, RESOLUTIONS are you referring this for a public hearing?
No, I'm not. I'm moving for the adoption of the resolution. (Duly seconded.)
It has been moved and properly seconded that this resolution be adopted. All those in favor will signify by saying aye. Those opposed? The ayes have it and the motion is carried. The Chair recognizes Councilman Ortiz.
The Chief Clerk will please read the title of the resolution.
A resolution authorizing the City Council's Committee on Public Safety to hold public hearings to monitor the progress made in improving the handling of sexual assault complaints and set forth in the recommendations adopted by the entire City Council on December 16, INTRODUCTION OF BILLS, RESOLUTIONS 1999.
This resolution will be referred to the appropriate committee. The Chair recognizes Councilman DiCicco.
Thank you, Madam President. I have no bills or resolutions.
The Chair thanks the gentleman. The Chair recognizes Councilman O'Neill.
Madam President, I offer two privileged resolutions for which I ask immediate consideration.
The Chair thanks the gentleman. The Chief Clerk will please read the title of the first resolution.
A resolution designating the week of January 30, 2000 through February 4, 2000 as "Catholic Schools Week" in City of Philadelphia.
The Chair INTRODUCTION OF BILLS, RESOLUTIONS recognizes Councilman O'Neill.
It has been moved and properly seconded that the resolution be adopted. All those in favor will signify by saying aye. Those opposed? The ayes have it and the motion is carried. The Chief Clerk will please read the title of the second resolution.
Do I hear a second that the resolution be adopted? (Duly seconded.)
It has been moved and properly seconded that the resolution be INTRODUCTION OF BILLS, RESOLUTIONS adopted. All those in favor will signify by saying aye. Those opposed? The ayes have it and the resolution is adopted. The Chair recognizes Councilman Clarke.
Thank you, Madam President. Madam President, I have three bills and two resolutions.
The Chair thanks the gentleman. The Chief Clerk will please read the title of the first bill.
An ordinance amending Title 19 of the Philadelphia Code, entitled "Finance Taxes and Collections," by amending Chapter 19-2500, entitled "Real Estate Non-Utilization Tax."
This bill will be referred to the appropriate committee.
And an ordinance amending Chapter 14-1607 of the Philadelphia Code, entitled "Special Controls for the Center City INTRODUCTION OF BILLS, RESOLUTIONS Commercial Area."
The bill will be referred to the appropriate committee.
And an ordinance amending Title 14 of the Philadelphia Code, relating to zoning and planning by amending Chapter 14-1600.
This bill will be referred to the appropriate committee. The Chief Clerk will please read the title of the first resolution.
And a resolution authorizing the Commissioner of Public Property to execute and deliver to the Redevelopment Authority buildings situate in the 15th, 16th, and 20th Wards of the City of Philadelphia.
It has been moved and properly seconded that the resolution be adopted. INTRODUCTION OF BILLS, RESOLUTIONS All those in favor will signify by saying aye. Those opposed? The ayes have it and the motion is carried. The Chief Clerk will please read the title of the second resolution.
A resolution authorizing the City Council of Philadelphia to hold hearings to investigate the non-enforcement of the real estate non-utilization tax and to find ways to improve the current legislation to provide for the additional revenue to offset the cost to the City.
This resolution will be referred to the appropriate committee. The Chair recognizes Councilman Rizzo.
The time has come for us to consider the Mayor's presentation MAYOR'S ANNUAL BUDGET MESSAGE of his annual budget message. The Philadelphia Home Rule Charter states that the Mayor shall submit to Council, not later than 90 days before the end of the fiscal year, his operating budget and a proposed operating budget ordinance for the ensuing fiscal year. At the same time, the Mayor shall submit to Council the recommended Capital Program and Capital Budget, as received from the City Planning Commission to the extent approved by the Mayor. I now appoint the following committee to escort the Mayor into the Council chambers: Councilwoman Blackwell, Councilwoman Tasco, and Councilman O'Neill. Please proceed. (Mayor Street is escorted into Council chambers.) THE
Thank you very much. Thank you so much. Thank you, thank you, thank you. Thank you very much. I was just wondering, before I get started, could I get that big glass that I used to MAYOR'S ANNUAL BUDGET MESSAGE have when I was here that had all that water in it that I used to drink? Maybe I could get that. Mr. Register, is that glass in the archives or something like that? Irv, do you have it? (Laughter.)
Oh, no, no, that will never do. Oh. Good morning, Council President Verna, members of City Council, members of the cabinet of the administration, special friends and guests. It's a rare opportunity, a unique challenge, and a special pleasure to appear as the Mayor before this legislative body in which I have spent 19 of the last 20 years. Having sat through 19 budget messages, I understand exactly how you feel. My message will be brief, it will be brief. (Applause.)
Oh, that's right. In my inaugural address, you heard me describe my vision of a better Philadelphia, my commitment to neighborhoods, to education, to blight removal, to tourism development, and to job creation. None of this will be possible in the MAYOR'S ANNUAL BUDGET MESSAGE years to come if we do not exercise the discipline to live within our means. Today, I propose an Operating Budget of $2.7 billion and a Capital Program of $140.3 million. This budget allows us to both realize our vision of a better Philadelphia and maintain our fiscal discipline. The fiscal stability of this city is important. It gives confidence to developers, who bring jobs and economic benefits to our city; it attracts national retailers to Philadelphia, who bring much needed revenues; it lowers interest rates on funds we borrow for improvements in our recreation centers, libraries, health centers, and other public facilities. And as a result, Philadelphia has joined the ranks of one of the nation's premiere cities. We all share a vision of a better Philadelphia; that is, a world-class city, with a vibrant and flourishing economy supported by lower taxes, enhanced City services, and a fiscally sound and responsible government. The budget I present today does that. It is a carry-forward budget. It lowers taxes, it MAYOR'S ANNUAL BUDGET MESSAGE enhances our current levels of service -- not by increased spending but by smarter spending. Lower taxes and better services will make Philadelphia more competitive as a place to live and a place to work. The Tax Reduction Program, which extends through Fiscal Year 2005, will save Philadelphia residents and businesses $1.1 billion in wage and business taxes. Okay? (Applause.)
In addition, in order to balance the budget, we will aggressively pursue $60 million in savings by the year 2005 through management and productivity improvements. This is why we are working closely with the Greater Philadelphia Chamber of Commerce, the African-American Chamber of Commerce, and the Philadelphia Hispanic Chamber of Commerce. They will help our city managers identify new areas for potential cost savings and revenue enhancements. While the Budget and Five-Year Plan include funding for City services and key initiatives, like expansion of our after-school programs, it's a conservative budget. 7 million surplus that we all accumulated over the past seven years. In fact, we expect about a $55 million operating deficit in Fiscal Year 2000, and we project operating deficits in three of the next five years. Those operating deficits do not come as a complete surprise. The surplus was built up in anticipation of increased costs, including our current labor contracts. 7 million surplus was clearly a fiscal achievement, but the greatest mistake we could make would be to forget the painful history of our financial crisis of the late '80s and early '90s. Yes, we have recovered from the worse fiscal crisis in the City's history and accumulated a record surplus, but this surplus was built, in part, because of some extraordinary factors. For example: The unprecedented growth in the national economy; One-time savings from productivity initiatives; Savings through the implementation of MAYOR'S ANNUAL BUDGET MESSAGE cost-effective risk-management programs, which have now been stabilized; Rental savings realized from consolidating City offices. 9 million by the end of Fiscal Year 2005, without accounting for any increased costs associated with new labor contracts. Moreover, our ability to maintain fiscal balance in the Five-Year Plan could be threatened by other factors beyond our control. We're vulnerable: We are vulnerable to any downturn in the national and local economies; We are vulnerable to increased demand for service as a result of welfare cuts; We are vulnerable to any changes in federal or state reimbursement formulas; We are vulnerable to any spikes in health-care costs for City employees; We are vulnerable to the possible loss of the $18 million annual rental payment from PGW; We are vulnerable to the continuing MAYOR'S ANNUAL BUDGET MESSAGE loss of revenues as a result of electric deregulation. In other words, in order for Philadelphia to continue to grow and thrive and fulfill its destiny as a world-class city, we must make certain things clear. There is no conflict between being business-friendly and being labor-friendly. Economic growth creates jobs, and good wages create economic growth. Our Economic Stimulus Program will continue to focus on developing specific strategies, strategies to support small businesses to, buttress existing industries, and to develop new industries to undergird Philadelphia's economic future. As I announced earlier, we have reached a conceptual agreement with the Philadelphia Eagles that with Council's support is likely to ensure that our football team will keep playing in Philadelphia through the year 2011. The Eagles are constructing a practice facility at the site of the former Philadelphia Naval Hospital, which will create 73 construction jobs and at least 215 permanent jobs. The City will retain the current MAYOR'S ANNUAL BUDGET MESSAGE and future wage tax revenue provided by the Eagles, about $2 million annually. We will also explore all reasonable strategies for developing new sports complexes for our teams. I expect to announce very shortly the process and framework for our discussions with the teams and, most importantly, communities likely to be impacted by new stadiums. We will make sure that any new stadium deal makes economic sense for the taxpayers of our city. )
We share a vision of a better Philadelphia, with strong neighborhoods free from blight, vacant houses, trash-strewn lots, and abandoned cars. And although I am proposing a conservative budget today, we will still undertake several new initiatives. Perhaps the most important of our new initiatives is the Saving Neighborhoods campaign. This will be an all-out assault on neighborhood blight and destabilization. This campaign is essential for Philadelphia to retain its vitality and viability as a destination of choice. Over the last decade, the City has spent over $100 MAYOR'S ANNUAL BUDGET MESSAGE million to demolish buildings and eradicate blight. Still, the quality of life for too many of our citizens has deteriorated because of vacant, deteriorating buildings, trash-strewn, and abandoned cars. We will partner with community residents and City Council to implement plans designed to deal with specific neighborhood needs. We will finance a $250 million Saving Neighborhoods Campaign through one of the City's development authorities. For the first time in many years, the City will be able to creatively and aggressively combat blight in our neighborhoods -- not only be averting crisis, but also by creating real development opportunities before the blight ultimately consumes us. In addition, we are planning an ambitious initiative to eliminate abandoned cars from the streets of Philadelphia. Our police department received more than 4,600 complaints about abandoned cars during the month of October alone. It was this City Council that first brought this issue to the forefront last spring, and I know that you fully understand the extent of MAYOR'S ANNUAL BUDGET MESSAGE the problem facing our neighborhoods. We all share a vision of a better Philadelphia with neighborhoods liberated from the plague of drugs and violence. The budget I propose today includes more funding for criminal justice programs that will enable us to step up the fight against crime. For example, the Capital Budget includes over $4 million to complete the Police Department's new start-of-the-art forensic laboratory as well as its new building for the 24th and 25th Police Districts. The Operating Budget includes $2.5 million for the District Attorney'S Office to create a new repeat-offender unit, to expand the economic crimes unit, to include a new cyber crime section, to establish a new school outreach program for the juvenile court unit, and to enhance the operations of the Law Division to ensure that convicted criminals are not improperly released. (Applause.)
The school outreach program is particularly important because through this program, the District Attorney's Office will MAYOR'S ANNUAL BUDGET MESSAGE coordinate action on juvenile cases with the School District, prosecutors will visit schools on a regular basis to explain to students the true consequences delinquency. The proposed budget also includes $5 million for police covering for the Republican National Convention and $10.8 million to fund the City's match for police officers under the Federal Crime Bill. All of these new initiatives will help make our schools and our streets safer. We share a vision of a better Philadelphia, where every public school can graduate students who are prepared to seize the opportunities on the horizon of a new millennium. In no arena will we be more forceful than in our unrelenting drive to make Philadelphia schools a true source of pride for our city. I have already identified experienced professionals who will tackle the City's educational challenges, a highly respected and competent local Secretary of Education, and progressive leadership on the school board who will work in partnership with the City, State, federal and other stakeholders. This week, I appointed the panel that will nominate new MAYOR'S ANNUAL BUDGET MESSAGE candidates for membership on the Philadelphia Board of Education. Our educational challenges are not new, but their urgency is new. This great city cannot prosper until we have a school system that produces a quality of education that encourages families and business to stay in our city. This great city cannot prosper until we have a school system that adequately prepares students for the rigors of higher education and a high-tech work place. Put simply, we must assure young parents that their children will have the opportunity to obtain the education they need to succeed. Our responsibility is to provide schools with efficient resources to produce those opportunities. Because it does not receive an appropriate level of funding from the Commonwealth of Pennsylvania, the School District does not now have sufficient resources. The District projects that it will end Fiscal Year 2000 with a cumulative fund deficit of $42 million, and that deficit could reach $183 million by the end of FY 2001, even without funding for crucial initiatives like reducing class size, summer MAYOR'S ANNUAL BUDGET MESSAGE school and after-school programs. Without adequate State support, the School District's fiscal crises will undoubtedly worsen. I will be meeting with Governor Ridge, State legislators, and members of this Council to start working together to fulfill our responsibility to Philadelphia's children. Significant progress has been made, but we must work together to identify sound management practices that ensure the best possible use of available resources. Together, we must achieve a lasting solution to the schools' chronic funding problem. (Applause.)
The proposed budget also includes a $1.5 million increase in the City's subsidy to Community College, for a total of $20.8 million as a further indication of our commitment to enhancing educational opportunities for all Philadelphians. The additional funding will allow Community College to provide classroom-based computer technology and make infrastructure improvements and renovations. At my inauguration, I proclaimed that MAYOR'S ANNUAL BUDGET MESSAGE the year 2000 would be the Year of the Child in Philadelphia. This week, I announced the creation of a new Office of Child Care, the formation of a Philadelphia Commission on Children, which will demonstrate our steadfast commitment to the youngest, the most precious, and the most vulnerable among us. Our new Kids Initiative is involved in developing skills, which focuses on keeping children off the street by providing them with constructive activities after school. Through the Kids Initiative, my administration intends to dramatically increase the number of children who have a safe place to learn and to play in the after-school hours and during the summer. Advocacy groups such as Philadelphia Citizens for Children and Youth estimate that perhaps as many as 75,000 children go unserved. In response to this critical gap in service through the Kids Initiative, this budget proposes to increase funding for after-school programs to more than $4 million, beginning in the Fiscal Year 2001. This will allow -(Applause.)
Thank you. MAYOR'S ANNUAL BUDGET MESSAGE This will allow the Recreation Department to extend its after-school programs uninterrupted through the summer months. When the funding increases are implemented, all current sites offering the popular after-school offers will offer camp activities while school is out of session. This budget also allows the Free Library to extend the Learn, Enjoy and Play Program to every library this year and to extend operations from 40 to 52 weeks a year. (Applause.)
Thank you. The Free Library Summer Reading Program will serve 48,000 children throughout the City, and the popular Science in the Summer Reading Program will serve 1800 children. (Applause.)
Thank you, thank you. In addition, in the fall of 2000, the library expects to open the new Independence Branch, which will be located within the Balch Institute on Seventh Street, in Center City East. This branch will meet the needs of a diverse MAYOR'S ANNUAL BUDGET MESSAGE ethnic and cultural socioeconomic population at a location convenient to their community. Moreover, the Kids Initiative will forge partnerships with schools, churches and synagogues, philanthropic organizations and community groups in order to promote the program and generate permanent funding support as well as additional after-school program sites. Finally, the Capital Budget proposed today includes $140.3 million in City-funded projects. This budget will allow us to continue to fund the kinds of infrastructure improvements and recreational and cultural enhancements that we have funded in recent years. We will also be able to launch several new projects. City-funded capital projects in the Fiscal Year 2001 include: $5.1 million for SEPTA's ongoing transit rehabilitation program. This program will improve the quality of transportation service for the one half million people who ride SEPTA daily; $11 million for repaving and reconstruction of streets and highways, walkways and bridges; MAYOR'S ANNUAL BUDGET MESSAGE $1 million for continued rehabilitation of the Family Court building; And $4.1 million for the construction of a multipurpose facility to support the new Women's Detention Center; $1 million for further development of the Avenue of the Arts North and South. (Applause.)
Thank you. $3.9 million for new neighborhood enhancements that include site improvements for housing and commercial revitalization programs such as the redevelopment of the Schuykill Falls and Martin Luther King housing developments; $14 million for additional improvements to our playgrounds, ball fields, courts, and other recreational department facilities. There is also funding for the rehabilitation of roofs and heating and safety systems at various recreation sites, with $550 million dedicated specifically to swimming pool replacement and repairs. (Applause.)
Councilman Nutter will MAYOR'S ANNUAL BUDGET MESSAGE also be proud to see the $21 million item for the purchase of new voting machines -(Applause.)
-- that will revolutionize the election process in Philadelphia, and maybe we won't have to stay up until 4 o'clock in the morning to try and figure out who won. (Applause.)
Actually, Darrell Clarke, Councilman Clarke might also be interested in such a proposal. (Laughter.) (Applause.)
Councilman Clarke and I have been recently affectionately referred to as the "landslide brothers." (Laughter.)
Clearly, however, this year's Fiscal Capital Budget contains less funding for many departments than have those in recent years. There are several reasons for that. First, we are fast approaching our legal debt limit. This debt limit limits the MAYOR'S ANNUAL BUDGET MESSAGE amount of money we can borrow to fund our Capital Program. By the end of Fiscal Year 2000, we will only have $288 million left in our borrowing capacity. That capacity can only grow as we repay our old debt or as the assessed value of our real estate grows. We must develop strategies that will allows us to maintain a reasonably sized Capital Budget without incurring excessive levels of debt. We must live within our means, we must maintain our fiscal discipline. We must adopt balanced budgets that are a pre requisite to the stability and credibility of our Philadelphia government. The budget I propose today meets this crucial task. I'm excited and honored to have this opportunity to work with this Council and the citizens of Philadelphia to realize our vision for a better Philadelphia. In conclusion, I repeat the request that I made at the day of my inaugural address. I asked for your ideas and your energy, your cooperation and prayers so that Philadelphia in this new century will continue to grow and thrive SPEECHES and fulfill its destiny as a world-class city, a place of hope and opportunity for all our people, a better Philadelphia. Thank you. (Standing ovation.)
Are there any speeches on the part of Minority? (No speeches on the part of the Minority.)
Are there any speeches on the part of the Majority? The Chair recognizes Councilman Nutter. Councilman, before you start speaking, may I ask our guests to please leave in an orderly fashion. We're trying to conduct business. Thank you. Councilman Nutter?
Thank you, Madam President. Just a couple housekeeping items. First, I wanted to congratulate and welcome our two new colleagues for their first session in these chambers: Councilwoman Blondell Reynolds Brown. SPEECHES (Applause.)
Second, Madam Chair, for some people who come to the Council sessions or for others who may watch on the government channel, I would like to point out and express welcome to our Majority Whip, Councilwoman Marian Tasco, to this side of the room. We are pleased to have her. We lament the loss of Councilman Jim Kenney to the other side of the room but we know that Councilwoman Blackwell and Cohen and Krajewski and the others will take care of him over there and watch over him in his stay on the other side of the room. We look forward to a lively -
Moved to the left, the Councilman moved to the left. Let it be known that Councilman Kenney has moved to the left and that Councilwoman Tasco has moved to the right. SPEECHES We look forward to exciting sessions here in City Council. Thank you, Madam President.
Thank you. Are there any other speeches? The Chair recognizes Councilman Clarke.
Thank you, Madam President. I would like to also welcome Councilwoman Brown and Councilman Goode. I want to say that last year, I won "The Rookie of the Year" honors. If either of you need tips as to how to win that this year, please feel free to give me a call. Thank you. (Laughter.)
Madam President, let me say that our new colleagues are on the proper side of the room. Thank you. (Applause.) ADJOURNMENT
Are there any other speeches on behalf of the Majority? (No response.)
Seeing none, the Chair recognizes Councilwoman Tasco for a motion to make an adjournment.
Madam President, I move that this session of Council be adjourned. (Duly seconded.)
That this session be adjourned until Thursday, February 10th, the year 2000.
It has been moved and properly seconded that the Council stand adjourned until Thursday, February 10, 2000. All those in favor will signify by saying aye. Those opposed? The ayes have it and the motion is carried. Thank you all very much. ADJOURNMENT (Adjourned at 11:04 a.m.) C E R T I F I C A T E I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of Thursday, February 3, 2000, were reported fully and accurately by me, and that this is a correct transcript of same. RE: STATED MEETING __________________________________, JOSEPHINE CARDILLO, Registered Professional Reporter