COUNCIL OF THE CITY OF PHILADELPHIA STATED MEETING Room 696, City Hall Philadelphia, Pennsylvania Thursday, April 3, 2003 10:15 a.m. PRESENT: COUNCIL PRESIDENT ANNA C. VERNA COUNCILWOMAN JANNIE BLACKWELL COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN DARRELL L. CLARKE COUNCILMAN DAVID COHEN COUNCILMAN FRANK J. DI CICCO 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 PATRICIA RAFFERTY, CHIEF CLERK V A R A L L O, INCORPORATED LITIGATION SUPPORT SERVICES Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103
Good morning. I note that the hour has come and that a quorum of this Council is present. Council will please come to order. Members will take their seats. To give our invocation this morning, the Chair welcomes the Rev. Dr. Nancy E. Moot (ph), Pastor of the First Presbyterian Church in Germantown. Dr. Moot is here today as the guest of Councilwoman Miller. Members and guesses will please rise. REV. MOOT: I bring you greetings from the First Presbyterian Church in Germantown, a diverse congregation committed to the community of Germantown, committed to working with others, organizations, and service institutions of Germantown along with Councilwoman Donna Reed Miller office's. One other thing, I just want you to know that last night I met with our governing board and told them that I was going to be here, and they had lots of messages, needless to say, but the one message they wanted me to convey was thank you to the City Council of Philadelphia for your hard work. Thank you. Let us pray. God, as we gather in the safety of this place, this building, this city, this country, we pray for all those people who do not feel safe, people who are in places of war. Bless those who live in those places, those whose homes are in lands where bombs fall and bullets are commonplace, those who worry for their children, for the innocent. Hear their cries and provide them with hope and faith to endure. Bless also those who are in the military. Guard all those brave men and women who risk themselves in battle for their country. Give them compassion for enemies who also fight for patriotic causes. Though they must be at war, let them live for peace victory; as eager for agreement as for victory. Encourage them as they encourage one another. Eternal God, who is our only hope and our help in times of trouble, show nations ways to work out differences. Do not let threats multiply or power be used without compassion. May your will overrule all human willfulness so that people may agree and settle claims peacefully. And almighty God, we pray for our City of Philadelphia. Bless those who hold office here that they may do their work in a spirit of wisdom, kindness, and them use their authority to serve faithfully and to promote the general welfare. Guide their decisions this day and every day so that Philadelphia may be a place that others will look to as a model of a community where barriers which divide us crumble, suspicions disappear, hatred cease, a community where all divisions have been healed and all able to live here in justice and peace. Give these leaders of this fair city your light and your truth. Amen.
The Chair thanks Dr. Moot for her very inspiring invocation. (Council at ease.)
The next order of business is the approval of the Journal of the meeting of Thursday, March 27, 2003. And the Chair recognizes Councilwoman Blackwell.
Thank you, Madam President. I move that the Journal of the meeting of Thursday, March 27, 2003 stand approved.
It has been moved and properly seconded that the Journal of the Thursday, March 27, 2003, stand approved. All in favor will signify by saying aye. (Aye.)
The ayes have it and the Journal of the meeting of Thursday, March 27, 2003, has been approved. The next order of business is requests for requests for leaves of absence. The Chair recognized Councilwoman Blackwell.
Thank you, Madam President. There are no requests for leaves of absence on the part of the majority.
The Chair thanks the Councilwoman. The Chair recognizes Councilman O'Neill.
Madam President, on behalf of the republicans, leave of absence is requested for Councilman Thacher Longstreth.
Thank you. Leave will be granted. The Chair will dispense with the regular order of business to recognize the guests and Chambers this morning. On behalf of all members of City Council I welcome you to our Council Session today. We appreciate your taking the time to join us as we attend to the legislative affairs of our City. We certainly invite you to come again. The next order of business is communications. And the Chair recognizes the Sergeant-at-Arms for the purpose of delivering the messages from the Mayor to the Chief Clerk. The Clerk will please read the messages from the Mayor. THE
To the President and Members of the Council of the City of Philadelphia, I am pleased to advise you that on April 2, 2003, I signed the following bills that were passed by Council at its Session on March 20, 2003: Bill No. 030024 and Bill No. 030099. And I wish to advise you that on April 2, 2003, I signed the following bill that was passed by Council on March 27, 2003: Bill 030081. And I am transmitting herewith for the consideration of your honorable body, a resolution authorizing the Mayor on behalf of the City of AND RES. Philadelphia to apply for and accept up to $500,000 in funding from the Commonwealth Department of Community and Economic Development under the Temporary Assistance to Needy Families Housing Rehabilitation Program; And an ordinance authorizing the Commissioner of Public Property on behalf of the City of Philadelphia to enter into a sublease agreement to lease from the Philadelphia Municipal Authority portions of the building located at 1601-45 Cherry Street, also known as Three Parkway; And an ordinance authorizing the Philadelphia Authority for Industrial development to file an application with the Office of the Budget, Commonwealth of Pennsylvania, under the Redevelopment Assistance Capital Program.
Thank you. The Chief Clerk will please read any our communications in her possession. THE
Thank you. The next order of business is the introduction of bills and resolutions. And the Chair, once again, AND RES. recognizes Councilwoman Blackwell.
Thank you, Madam President. I move that the Rules of Council be suspended so as to permit immediate consideration of resolutions at their time of introduction. (Duly seconded.)
It has been moved and properly seconded that the Rules of Council be suspended so as to permit immediate consideration of resolutions at the time of introduction. All in fair will signify by saying aye. (Aye.)
The ayes have it the motion carries. The Chair recognizes Councilman Kenney.
Thank you, Madam President. On behalf of myself and Councilmember O'Neill, I offer one resolution.
The Clerk will please read the title of the resolution. THE
A resolution mourning AND RES. the death and honoring the memory Speaker Matthew J. Ryan.
Madam President, I move the adoption of the resolution by a vote.
Those voting in favor will please rise. (Unanimous standing vote.)
The resolution has been adopted. The Chair recognizes Councilwoman Blackwell.
Thank you, Madam President. This morning I introduce one resolution.
The Clerk will please read the title of the resolution. THE
A resolution authorizing the Commissioner of Public Property to execute and deliver to the Redevelopment Authority deeds located in the 6th, 27th and 44th Wards of the City of Philadelphia.
The Chair AND RES. recognizes Councilwoman Blackwell.
Thank you, Madam President. I move for the adoption. (Duly seconded.)
It has been moved and properly seconded that the resolution be adopted. All in favor will signify by saying aye. (Aye.)
The ayes have it, and the resolution has been adopted. The Chair recognizes Councilman Cohen. Is he here? (No response.)
The Chair recognize hiss Councilwoman Krajewski.
Thank you, Madam President. I offer one resolution.
Thank you. The Clerk will please read the resolution. THE
A resolution declaring April 2003 as Autism Awareness Month. AND RES.
Move for the adoption of the resolution. (Duly seconded.)
It has been moved and properly seconded that the resolution be adopted. All in favor will signify by saying aye. (Aye.)
The ayes have it, and the resolution has been adopted. The Chair recognizes Councilman Mariano.
The Clerk will please read the title of the resolution. THE
A resolution honoring the Blue Star Mothers and encouraging Philadelphians to place blue star in their window as a sign of support for our troops.
Madam President, I move for the adoption of this resolution. (Duly seconded.)
It has been moved and properly seconded that the resolution be adopted. All in favor will signify by saying aye. (Aye.)
The ayes have it, and the resolution has been adopted. The Chair recognizes Councilwoman Tasco.
Madam President, I have no bills or resolutions today.
The Chair thanks the Councilwoman. The Chair recognizes Councilwoman Miller.
Thank you. The Clerk will please read the title of the AND RES. resolution. THE
A resolution authorizing the Commissioner of Public Property to execute and deliver to the Redevelopment Authority of the City deeds located in the 11th, 12th, 13th and 17th Wards of the City of Philadelphia.
I move for the adoption of the resolution. (Duly seconded.)
It has been moved and properly seconded that the resolution be adopted. All in favor will signify by saying aye. (Aye.)
The ayes have it, and the resolution has been adopted. The Chair recognizes Councilman Nutter.
The Clerk will AND RES. please read the title of the bill. THE
An ordinance amending Title 17 of the Philadelphia Code, entitled "Contracts and Procurement," by adding a new chapter requiring the inclusion of liquidated damages, provisions in City contracts that require City contractors to abide by the terms of economic opportunity plans and requiring such liquidated damages provisions to be passed along to certain other parties, all under certain terms and conditions.
The bill will be referred to the appropriate committee. The Chair recognizes Councilwoman Brown.
Thank you, Madam Chair. I have no bills or resolutions this morning.
The Chair thanks the Councilwoman. The Chair recognizes Councilman Goode.
Thank you, Madam President. I have no bills or resolutions.
The Chair thanks the gentleman. The Chair recognizes Councilman Ortiz. AND RES.
Thank you, Madam Chair. I have no bills or resolutions.
The Clerk will please read the title of the bill. THE
An ordinance authorizing 1122 South 10th Street to construct, own, maintain a one-story vestibule addition on the south footway of Washington Avenue and dumpster enclosure on the east footway of 10th Street adjacent to the property 932 Washington Avenue.
The bill will be referred to the appropriate committee. The Chair recognizes Councilman O'Neill.
The Chair thanks the gentleman. The Chair recognizes Councilman Clarke.
Thank you, Madam President. Madam President, I have two bills and AND RES. one resolution.
The Clerk will please read the title of the first bill. THE
An ordinance authorizing the Commissioner of Public Property on behalf of the City of Philadelphia to enter into a sublease agreement to lease the Philadelphia Municipal portions of a building located 1601-45 Cherry Street.
The bill will be referred to the appropriate committee. THE
And an ordinance amending Section 17-107 of the Philadelphia Code, entitled "Contractors Labor Management Relationships," by requiring a certain number of apprentices for every journeyman on every City work contract, all under certain terms and conditions.
This bill will be referred to the appropriate committee. The Clerk will please read the title of the resolution. THE
A resolution authorizing the Commission of Public Property to execute and deliver to the Redevelopment Authority AND RES. of the City deeds located in the 32nd and 37th Wards of the City of Philadelphia.
It has been moved and properly seconded that the resolution be adopted. All in favor will signify by saying aye. (Aye.)
The ayes have it, and the resolution has been adopted. The Chair recognizes Councilman Rizzo.
The Clerk will please read the title of the resolution. THE
A resolution authorizing the City Council Legislative Oversight Committee to hold hearings on the effects that AND RES. parking rates charged by privately and publicly own parking facilities located in the City of Philadelphia have on businesses, employees, residents, and visitors, and how such parking rates can be made more consumer friendly either by direct regulation by the City or by creation of competition by the City.
Madam President, I neglected to say that this is being cosponsored by Councilman Kenney, and I move for the adoption of this resolution. (Duly seconded.)
It has been moved and properly seconded that the resolution be adopted. All in favor will signify by saying aye. (Aye.)
The ayes have it, and the resolution will be referred to the Oversight Committee. business is reports from committees, and the Chair recognizes Councilwoman Blackwell for a report from the Committee of the Whole.
Thank you, Madam President. The Committee of the Whole reports out two bills with a favorable recommendation.
To the President and Members of the Council of the City of Philadelphia, the Committee of Whole to which was referred bill No. 030123 entitled, an ordinance requiring that any proposed rate filing with the Pennsylvania Public Utility Commission on behalf of the City's natural gas distribution operation include a proposal to continue the existing senior citizen discount and authorizing and directing the execution of an amendment to the City's agreement with the Philadelphia Facilities Management Corporation; And Bill No. 030138, entitled an ordinance enacting a new Chapter 19-2000 of the Philadelphia Code entitled, "Discounted Rates for Natural Gas Distribution and Supply Services for Citizens," reaffirming and reenacting a senior citizens' discount for senior citizen customers of Philadelphia Gas Works; Respectfully reports it has considered the same and returns the attached bills to Council with a favorable recommendation.
Thank you, Madam President. I move that the Rules of Council be suspended so as to permit first reading this day of Bill Nos. 030123 and 030138.
It has been moved and properly seconded that the Rules of Council be suspended so as to permit first reading this day of Bill Nos. 030123 and 300138. All in favor will signify by saying aye. (Aye.)
The ayes have it, and the bills just read will be placed on today's this time the Chair recognizes Councilman Kenney for a report from the Committee on Public Property and Public Works.
Thank you, Madam President. The Committee on Public Property and Public Works one bill out with a favorable recommendation.
To the President and Members of the Council of the City of Philadelphia, the Committee on Public Property to which was referred Bill No. 030075, entitled an ordinance authorizing the Commission of Public Property on behalf of the City of Philadelphia to acquire by purchase, lease, or condemnation a certain temporary easement through 3500 Scotts Lane for sewer and drainage construction purposes, under certain terms and conditions; Respectfully reports it has considered the same and returns the attached bill to Council with a favorable recommendation.
Madam President, I move that the Rules of Council be suspended so as to permit first reading this day of Bill No. 030075. (Duly seconded.)
It has been moved and properly seconded that the Rules of Council be suspended so as to permit this day first reading on Bill No. 030075. All in favor will signify by saying aye. (Aye.)
The ayes have it, and bill just read will be placed on today's First Reading Calendar. Councilman Cohen, do you have any bills or resolutions.
I have no bills or resolutions today. Thank you, Madam President.
Thank you, sir. That concludes reports from committees. Our next item of business is the consideration of the calendar. The Chief Clerk will please read the First Reading Calendar. THE
Bill No. 030123, an ordinance requiring that any proposed rate filing with the Pennsylvania Public Utility Commission on behalf of the City's natural gas distribution operation include a proposal to continue the existing senior citizen discount and authorizing and directing the execution of an amendment to the City's agreement with the Philadelphia Facilities Management Corporation.
Bill No. 030138, an ordinance enacting a new Chapter 19-2000 of the Philadelphia Code entitled, "Discounted Rates for Natural Gas Distribution and Supply Services for Senior Citizens," reaffirming and reenacting a senior citizens' discount for senior citizen customers of Philadelphia Gas Works.
And Bill NO. 030075, an ordinance authorizing the Commission of Public Property on behalf of the City of Philadelphia to 4/3/03 - STATED - 2ND READING AND FINAL PASSAGE acquire by purchase, lease, or condemnation a certain temporary easement through 3500 Scotts Lane for sewer and drainage construction purposes, under certain terms and conditions .
The Chair agrees. The bills just read by the Chief Clerk will be placed on the Second Reading and Final Passage Calendar for our next Session of Council. This concludes the First Reading Calendar. The Chair now recognizes Councilwoman Blackwell for the purpose of calling up bills on the Second Reading and Final Passage Calendar.
Thank you, Madam President. Today Bill Nos. 030014, 030073. 020813, 030018, 030019, 030020, 030021, 030080, 030102, 030140, 030015, 030022, 020827, and 030125 are being called up for second reading and final passage. All other bills are being held.
Thank you. The Clerk will please read the title of Bill No. 030014. THE
An ordinance amending 4/3/03 - STATED - 2ND READING AND FINAL PASSAGE Section 19-1301 of the Philadelphia Code entitled "Real Estate Taxes," by providing that the taxes levied on a property under that section shall not increase in any one year by more than a specific percentage as the result of an increase in the assessed value of the property as returned by the Board of Revision of Taxes.
This bill having been read on two different days, the question now is shall the bill pass finally? The Clerk will please call the roll.
Thank you, Madam President. I'm sorry, Councilman, what was -
We've had so much discussion, so many different versions of these tax relieve bills, I think it's important that we know 4/3/03 - STATED - 2ND READING AND FINAL PASSAGE specifically what we're voting on.
Thank you, Councilman. I appreciate that. Councilman Bill 030014 is an exact replica of a bill passed by this Council last December. That was Bill 020537A. This bill would impose a 10 percent cap on the amount that a property owner's property tax would increase from last year's level to this year's level. It's a one-year cap. And as I said, Councilman, it is exactly a replica of the bill that was passed last year. It was reintroduced at the beginning of this year. Councilman, you'll remember from the chart that was produced back in December or November of last year, possibly, the City -- there's City portion to the property tax, there is a School District portion of the property tax, and those shares combined make up the entire property tax. This is the City portion of the property tax only. The School District bill is still on the Calendar and there's not been a vote on that particular bill. You'll recall, Councilman, from the chart data that was provided last year, the impact 4/3/03 - STATED - 2ND READING AND FINAL PASSAGE to the City as a result of this bill as compared to the City budget that we passed last year for the current Fiscal Year, the financial impact is $980,000. But that's what this bill is, Councilman, it is the replica of the 10 percent cap on the City portion of the property tax which is the bill that was passed last year by this Council, I believe 17 to nothing.
Thank you. I think it important for Councilmembers and the audience here today -- we have a full house. I think the audience is also entitled to know specifically with respect to important bills just what's before us and what the issue is that we're voting on. Thank you very much, Councilman Nutter.
At this time the Chair recognizes Councilwoman Brown.
Thank you, Madam President. I wanted to be absolutely certain that this bill in no way impacts Philadelphia Public School system and is stated in the language of the bill. 4/3/03 - STATED - 2ND READING AND FINAL PASSAGE
Yes, Madam President yes, it does not impact the Philadelphia School District and it is stated in the bill that it only affects the rates on the City portion of the property tax.
I'm at a loss to find it, so I need to ask my colleague to point to that language specifically in the bill.
It's number -- give me a second. We have a pretty full pack of bills today. I'm trying to find it in the pink stack. If someone could tell me, is it closer to the back, closer to the front -- never mind, I found it. 030014, it towards the back of the big pink stack. Section 19-1301 of the Philadelphia Code, entitled "Real Estate Taxes," that is the section of the Philadelphia Code that solely and specifically deals with real estate taxes of the City portion. And I think if me colleague would look Bill 538A, which is probably toward the front of the stack of bills, you will see that that bill amends Section 19-1800 which is the school tax authorization. The City tax is covered by Section 19-1300. The School District tax 4/3/03 - STATED - 2ND READING AND FINAL PASSAGE is governed by Section 19-1800. They are two separate and totally distinct sections of the Philadelphia Code because there are two separate and totally distinct taxes from each other.
However, we're voting on bill 030014. In the language of that bill, there's no discussion of the omission as to how this bill impacts the public school system.
I'm sorry, Councilwoman Brown. I'm not completely understanding the question.
You refer us to 020538A. That is not the bill up for vote today.
That is correct. I was using that by way of explanation to show that the City portion of the tax -- unfortunately, I'm not carrying my Code with me today. And we can certainly get one and I'd even be willing to take a pass for a moment. But if we had a Philadelphia Code handy, you will find that the City portion of the real estate tax is governed by section 19-1300 of the Philadelphia Code. I pointed to Bill 538A because I know that the language in that bill shows that Section 19-1801 is a section of the code that 4/3/03 - STATED - 2ND READING AND FINAL PASSAGE governs the School District portion of the property tax. I think, again, if you look at 538A, the language in number 34 says, "for tax year 2003, the tax imposed by the Board of Education of the School District of Philadelphia shall be at the rate..." And it goes on to say what the rate is. That is the School District of the property tax and it is only by that Section.
Thank you for the clarity on that issue. How does this bill differ from the bill that was is vetoed by the Mayor last year?
I would suggest that there is probably virtually no different. It is -as I responded to Councilman Cohen, it is a mirror image of Bill 020537A passed by Council, I believe in late December, 17 to nothing. That bill was returned, I believe, on the 5th and Council took an override vote on the 12th. The bill is the same.
Thank you, Councilman Nutter. Thank you, Madam President.
Thank you for the question, Councilwoman. 4/3/03 - STATED - 2ND READING AND FINAL PASSAGE
Madam Chair, my light is on just for the vote. I have no questions.
May Councilman Nutter take another when question on the bill? In view of the lateness in the tax year for 2003, what impact, if any, will this bill have or are we acting on it to express the view of City Council but that the bill will have no impact?
Thank you for the question, Councilman. One I believe the bill will have an impact for those who have paid their taxes as well as those who have not. Some taxpayers have not paid their tax bill yet because the appeal process is still continuing since there were a significant number of appeals this year. So I don't think this was the Councilman's question, but I understand what he's trying to get at. This is way beyond the notion of any symbolism. This is real money in the taxpayers' pocket. And for many taxpayers of means and many of lesser means will 4/3/03 - STATED - 2ND READING AND FINAL PASSAGE have some significant impact on their financial situation. As we took great amount of testimony from taxpayers legitimately complaining that the excessive and exorbitant and outrageous increases that they received last year are potentially taxing many of them out of their homes. I think that Council has an ability to take an action here which balances the concerns and interests of the taxpayers as well as the City finances. We know -- I don't think there's much dispute -- that the tax assessment system in Philadelphia is on the verge of breakdown and it is out of control. So Councilman, I guess the shorter response to your question was, it is real, it is legitimate, it is real money taxpayers' pockets and we have an opportunity to help people who are crying out for relief.
Thank you, Councilman Nutter. I will be voting this bill in view of your explanation.
Thank you, Madam 4/3/03 - STATED - 2ND READING AND FINAL PASSAGE President. Madam President, I would like to ask the sponsor one brief question if it's okay with the sponsor.
I don't think I've ever turned down a question, so far.
Councilman, I can honestly say, I've never heard you turn down a question. Councilman, in view of -- we don't really know what the ultimate State budget will be. There's obviously a proposal on the table that could affect the wage taxes in the City of Philadelphia and maybe wage and property taxes in the surrounding counties and the rest of the State. We all know that at the end of the day what's proposed doesn't necessarily ultimately end up being a law, so there's some play with respect to real estate taxes and wage taxes in the City. Would this particular bill be impacted by or will it impact on what may happen on the State level as relates to the Governor's proposed budget and what may ultimately come as a result of his 4/3/03 - STATED - 2ND READING AND FINAL PASSAGE proposed budget?
Thank you for the question, Councilman. I think the one thing that's absolutely certain is that I don't know if anyone, including Governor Rendell, knows exactly what's going to happen with his proposals at the State level. But the second thing we do know from the Governor's proposal is that he is proposing, and I certainly support and encourage, that his property tax relief plan will affect 66 of the 67 counties in the Commonwealth of Pennsylvania. The Governor is proposing that quote/unquote property tax relief for Philadelphia will not be directed at property tax relief it will be directed at wage tax relief. I agree with the Governor on that particular proposal we are left, though, Councilman, as we know, with the interesting situation that people who live in counties around us do have potentially the opportunity -- and I think it's laid out in a newspaper story this morning -- the opportunity to have the combined benefit of property tax relief from the State and wage tax relief from the City if those individuals happen to work in Philadelphia. The bill in front of us is for the current tax year. 4/3/03 - STATED - 2ND READING AND FINAL PASSAGE The Governor's proposals at best would be for future tax years. And I think, going back to what Councilman Cohen asked, some people have paid their taxes and some people have not paid their taxes, but we do know for a fact that many people in Philadelphia are suffering from exorbitant and excessive increases in notices that receive last summer and received their bills in January. So I'm looking forward to working with the Governor on his future package, but I think this City Council has an opportunity to do something today about the current property taxes.
With respect to the impact of the City budget, that's more along the lines of the question I was asking. This particular bill if passed will obviously have an effect on the City's budget in its Five-Year Plan. Any future reductions on wage tax will also have an effect on the City's budget and its Five-Year Plan, that's kind of the line of questioning I was asking, the 4/3/03 - STATED - 2ND READING AND FINAL PASSAGE financial implications as it relates to this particular bill as we move ahead.
Because there are certain numbers associated with this bill and certain numbers associated with any future reductions in wage tax as it relates to revenue coming to the City. As you know, I've expressed I am somewhat concerned about our financial situation, as I'm sure everyone is in the City, although equally as concerned about individuals having money in their pocket. But if we have a looming deficit, I'm somewhat concerned about us continuing tax reduction programs, not looking at it in a holistic way, particularly given the looming State budget in its long-term fiscal implications to the City.
Right. Two quick responses. One Councilman, in terms of the City's Five-Year Plan, this bill is narrowly crafted to only affect current Fiscal Year, so there would be no impact in future budgets. Second, with regard to the reductions as proposed by Governor Rendell's plan on the City wage tax, I think the beauty of the 4/3/03 - STATED - 2ND READING AND FINAL PASSAGE Governor's proposal is that we actually get dollars to replace what the new rate would be on the wage tax. I think it's estimated somewhere at slightly below 4 percent. They're not requiring us to reduce the wage tax without giving us the money to cover what those reductions may be. So I'm not -- again, the details are a little sketchy on the Governor's proposal, but I think there are no net loss of revenues to the City because the wage tax reductions come as result of dollars directly from the State coming from a combination of the Governor's proposals. So again, this bill is for this year, and against our approved budget it's $980,000. I mean, money is certainly money and you're concerned about the City budget, I'm concerned about the City's budget, everybody's concerned about it. But I think the opportunity to help our taxpayers with what is in the whole scheme of things a rather small amount of money as compared to some of the other things that we've spent money on, I think that it is fair, it's balanced, and it's reasonable under the circumstances.
I promise this is my 4/3/03 - STATED - 2ND READING AND FINAL PASSAGE last response. I guess, Councilman, I'm just somewhat concerned because of the uncertainty of the Governor's budget and the reality that we may ultimately have to end up re-doing our Five-Year Plan as the result of the impending budget, whatever it may end up being. I guess I'm somewhat concerned about the timeliness of the vote on this particular bill that will, in fact, impact the Five-Year Plan although only in the first Fiscal Year in that Five-Year Plan. I guess my concern is why we would be doing this at this point in time, not knowing what will ultimately come as a result of our restructuring of our Five-Year Plan.
Councilman, I do appreciate that, and I guess all I can really say is I did try to do this before. The bill passed 17 nothing. And I thought we were well on our way last year to dealing with this particular issue. And again, if we had been successful on December 12, 2002, with the override, I can assure you that you and I would not be having this particular discussion today. So I'm dealing with the hand that I was dealt. I'm committed to working on this particular issue. And I think you and I have had the good 4/3/03 - STATED - 2ND READING AND FINAL PASSAGE fortune of knowing each other for a long period of time and you know that pretty much if I'm on an issue, I'm on it and I'm going to stay on it and I'm going to keep talking about it and keep fighting for it because in my heart I believe it's just the right thing to do. That's all I can say to you.
You're welcome. The Chair recognizes Councilman Cohen.
Thank you, Madam President. First, as to the Five-Year Plan. The Five-Year Plan is not supposed to be a straight jacket, it's supposed to be a general guide because everybody knows in government five years is a long, long time. This Council recognizes the relative importance of a budget process as against a Five-Year Plan. Therefore, we spend about one morning on a Five-Year Plan and spend about six weeks on the budget because the immediate budget for the year is alive, it's real, it's current. The Five-Year Plan is a set of plans that we hope will work out if the economy stays the same, if there are no emergencies, or if there's no big gains that come 4/3/03 - STATED - 2ND READING AND FINAL PASSAGE suddenly to the government. The Five-Year Plan can always be changed. And the Five-Year Plan is part of a plan required by PICA when the City seemed to have financial troubles that were hoisted upon the City by Wall Street bankers who refused to guarantee the City's loans. They compelled the State to pass a law to issue the bonds instead of having Philadelphia to issue bonds. And as part of that plan, we are required to plan ahead five years. But everybody knows five years is a long time. So I don't think it's much concern if we're possibly going to have to amend the Five-Year Plan. It's easy. It's not a straight jacket. It's just a general principle, general guide. Secondly, with respect to the wage tax to the Governor, I welcome the Governor's action but also want to put in a warning. I think the Governor is trying to prevent the targeted wage tax cut that I have proposed and which is one vote away from passage, and that is the bill that would permit the wage tax to be cut down to 1 1/2 percent from its present level for all taxpayers who are exempt from federal and state income taxation. It is my view that the Governor's proposal is aimed at perhaps 4/3/03 - STATED - 2ND READING AND FINAL PASSAGE derailing that proposal and to give the wage tax cut to everybody, including the ridge and the big businesses in Philadelphia. And I want to make sure clear that I will oppose any effort to derail that wage tax cut which I propose and which I believe has very strong support in City Council and in the City of Philadelphia. I think the next wage tax cut ought to go to low-income workers, which means a family of four where the family income is $32,000 or less. And those people are exempt from federal and state income taxes. And I think the wage tax relief next due is not that which the Governor is talking about, but which workers are entitled to because that will help all the neighborhoods in the City because it will enable workers to have more purchasing power and it will help retail business in the community. So I've just serving notice, Councilman Nutter, because you stated that you support the Governor's plan. I do too, but within limits. I believe the next obligation on wage tax cuts belongs to the working people and the people in Philadelphia who are at the lower level of income and who are exempt from federal and state taxation. 4/3/03 - STATED - 2ND READING AND FINAL PASSAGE With those warnings, I still say I strongly support this bill. I think it sends a message. And as I would read it, if this bill is effective, even if the appeal is finished and people have already paid a tax, they would be entitled to a refund in the event that they overpaid the tax if we limit it to 10 percent. Is that right Councilman DiCicco? You've been in the forefront on this.
So it could provide more money people in Philadelphia who desperately need it. Thank you, Madam President.
Councilman Nutter, I want a very short answer to this because I think we've gone on and on in the debate. As follow-up to Councilman Cohen's previous intervention, this is not retroactive to the beginning of the Fiscal Year; true? Yes or no?
It impacts this 4/3/03 - STATED - 2ND READING AND FINAL PASSAGE fiscal year.
I think Councilman Cohen said because we're almost to the end of the fiscal year. The bill is introduced within this Fiscal Year. Does it take effect and impact on those that have appealed only or does it go back to retroactivity to the beginning of the year?
It's for all taxpayers, Councilman. It affects anyone who received an increase in the current tax year. So people who received their notices more likely last summer in August or September, some people appealed some people didn't. And taxpayers received their actual tax bill, unless they appealed, probably sometime in January and their taxes were due no later than March 31st unless they're in appeal.
So those have paid their bills, after this bill is passed and let's say it's approved, can then go to appeal to the Revenue Department for a refund?
Thank you. The Chair recognizes Councilman Clarke.
Thank you, Madam President. I'll try to be to brief because I know the debate has gone on for quite sometime. I just want to respond to a couple comments that have been made. One, with respect to the Five-Year Plan, while I understand the Five-Year Plan is just that, a plan, it is not a straight jacket, but the reality is that it speaks of real dollars and the reality is that there's certain reductions in revenue associated with that plan that will then have to be a reduction in either the work force, a reduction expenditures for programs in communities. So I don't want people to get a sense that we can somehow move these numbers around and at some point it won't have some ultimate effect on our ability to do the business of the City of Philadelphia. As recent as last week, I in fact got a call from an individual who supported certain revenue reduction programs that to some small degree calls for a reduction in our ability to spend money 4/3/03 - STATED - 2ND READING AND FINAL PASSAGE on certain employees and one employee was getting laid off as a result of the restructuring of our budget. And I was asked to pull political strings to get that person back on the City's payroll. And I want the people to understand that there is clearly some impact on our continued revenue reduction programs. With respect to the Governor's budget, what is on the table is, in fact, the most recent proposal. Under the bill that was put forth by the Governor early on in the process, that bill will have a $100 million impact on the City of Philadelphia. What the Governor is attempting to do is to whittle that from that $100 reduction in revenue to the City of Philadelphia. So it's not as if he's starting from the premise that he will now provide additional revenues to the City based on what was done by the Governor and by the Legislature, the projection is that we will lose a hundred million dollars. And I think it's going to be an extreme uphill battle to get that hundred million dollars back in addition to some more revenue coming to the City. So I want it to clear that we're not operating from a position of strength 4/3/03 - STATED - 2ND READING AND FINAL PASSAGE at this point on the state level. Thank you.
Madam President, we've been round and round and I think the debate has been good, it has been solid, it's been direct, and I don't have anything else to add to the record. And if there are no other comments, why don't we just vote?
This bill having been read on two different days, the question is now shall the bill pass finally. The Clerk will please call the roll. THE