COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON APPROPRIATIONS - - - Room 400, City Hall Philadelphia, Pennsylvania Thursday, November 29, 2007 9:30 a.m. - - - PRESENT: COUNCILWOMAN JOAN L. KRAJEWSKI, CHAIR COUNCILMAN DARRELL L. CLARKE COUNCILMAN W. WILSON GOODE, JR. COUNCILWOMAN DONNA REED MILLER COUNCILMAN FRANK RIZZO BILL 070940 - An ordinance authorizing transfers in appropriations for Fiscal Year 2007 within the Water Fund... BILL 070941 - An ordinance authorizing transfers in appropriations for Fiscal Year 2007 within the Aviation Fund... BILL 070942 - An ordinance authorizing transfers in appropriations for Fiscal Year 2007 from the General Fund... BILL 070952 - An ordinance authorizing transfers in appropriations for Fiscal Year 2008 within the General Fund... - - - V A R A L L O Incorporated Litigation Support Services Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 2
Good morning. The Committee on Appropriation is now in session. I would like to acknowledge to my left we have Councilman Goode, Councilman Clarke. To my right is Councilwoman Miller. Will the Clerk please read the bills.
Bill No. 070940, an ordinance authorizing transfers in appropriations for Fiscal Year 2007 within the Water Fund from certain or all City offices, departments, boards and commissions to certain or all City offices, departments, boards and commissions; and Bill No. 070941, an ordinance 20 authorizing transfers in appropriations for Fiscal Year 2007 within the Aviation Fund from certain or all City offices, departments, boards and commissions to certain or all City offices, departments, boards and commissions; and 3 11/29/07 - APPROPRIATIONS - BILL 070940, ETC. Bill No. 070942, an ordinance 3 authorizing transfers in appropriations for Fiscal Year 2007 from the General Fund, certain or all City offices, departments, boards and commissions and from the Grants Revenue Fund, the Director of Finance - provision for other grants and from the Community Development Fund, the Director of Finance - Community Development Block Grant - to be allocated to the General Fund, certain or all City offices, departments, boards and commissions; and Bill No. 070952, an ordinance 16 authorizing transfers in appropriations for Fiscal Year 2008 within the General Fund from certain or all City offices, departments, boards and commissions to certain or all City offices, departments, boards and commissions.
Thank you. Is there someone from the Administration to testify? 4 11/29/07 - APPROPRIATIONS - BILL 070940, ETC.
Good morning, Councilwoman Krajewski and members of the Appropriations Committee. I'm Dianne Reed. I'm the Budget Director of the City and I'm here to offer testimony in support of Bills 070942, 070940 and 070941, which cover transfers in the General Fund, the Water Fund and the Aviation Fund to balance the FY07 budget as now represented in the City's year-end financial statement. The transfers include about $49 million. Twenty-three of that is unused General Fund appropriation, another 15 approximately is from Grants Revenue Fund and another 11 and a half from the Community Development Block Grant. These funds have been used to accommodate increased spending in a number of areas, the largest of which is an $11.3 million payment to the Health and Welfare Fund of the local firefighters union as a result of the settlement of their health benefit reopener. 5 11/29/07 - APPROPRIATIONS - BILL 070940, ETC. Another large payment is $6 million in Public Property for water and sewer charges and also about $6 million for the telephone bill of the City to straighten out the accounts there as a result of the transfer of the communications unit to MOIS. Another is about $7 million in the Fire Department, mostly for holiday pay and also the increased payment for the emergency services vendor offset by revenue. And the last one to mention is the First Judicial District, about $3 million for Class 100 payments as a result of the agreement that the City has with the FJD on any savings they achieve or additional revenue comes in would be shared between the courts and the City. And regarding the Aviation Fund, the $200,000 there really pays for Aviation's share of the IAFF settlement. And for the Water Fund, this $21.4 million really represents the correction 6 11/29/07 - APPROPRIATIONS - BILL 070940, ETC. to their share of the Pension Fund, and this, as in the previous couple of years, results from the fact that as we have cut the General Fund staff and the Water Fund staff has stayed about the same, their share of the total payment gets larger. This concludes my testimony on these bills. I'd be happy to answer any questions you may have, and I ask for suspension of the rules for these bills to put on first reading in City Council today.
Thank you very much. Are there any questions from members of the Committee? (No response.)
There being none, is there anyone here to oppose? (No response.)
I believe that we have Herb Wetzel. Joyce, do you want to come up? Good morning.
Good morning. My name is Herbert Wetzel and I'm Executive Director of City Council's Office of Housing and Community Development.
Yes. I'm here today in support of 070952. This bill would authorize the transfer of $220,000 to the City Controller to conduct an audit of all expenditures of Neighborhood 8 11/29/07 - APPROPRIATIONS - BILL 070940, ETC. Transformation Initiative bond proceeds for the acquisition of properties. Under the Neighborhood Transformation Initiative that was created by this Council through Bill No. 7 020036, a total of $89 million of bond proceeds and supplemental funds were allocated for the acquisition of properties. Fifty-two million was distributed among ten Council districts through a formula based on the level of blight in each of those districts. Thirty-seven million was allocated to what is termed "City Significant" acquisitions, which were determined by the Administration. During the past six months, on behalf of many members of this Council, I have made repeated requests to the NTI office and the Office of Housing and Community Development for a full and complete accounting of the expenditures of NTI bond proceeds for the acquisitions in their districts. I've also made 9 11/29/07 - APPROPRIATIONS - BILL 070940, ETC. numerous requests for a full and complete accounting of all expenditures of NTI bond proceeds for acquisitions under the City Significant line item. To date, I have not received one accurate report that documents these expenditures and in some cases I have not received any report. For the Administration to be unable to provide these reports is unacceptable and cannot be tolerated by this legislative body. Recently, out of shear frustration over not being able to get an accurate accounting of expenditures, Councilwoman Campbell requested the City Controller perform a review of a limited number of NTI acquisitions whose costs were being charged to the Fourth Council District allocation of NTI bonds proceeds. The interim report received from the City Controller documents that expenses for the acquisition of properties in the Eighth Council District were being charged to the Fourth Council 10 11/29/07 - APPROPRIATIONS - BILL 070940, ETC. District. The bill that created the Neighborhood Transformation Initiative states, "No real estate or any interest in real estate shall be acquired with the proceeds of any bonds unless City Council shall have specifically approved such acquisitions by resolution or ordinance." In spite of this legislative prohibition, the Controller uncovered two acquisitions that had proceeded and properties were acquired without the necessary City Council approvals. Separate from the City Controller's review, I pressed for an accounting of expenditures of three completed acquisitions in the Fourth District. The result was that these acquisitions came in under budget by almost $150,000. Had I not pressured the Administration for this accounting, the Councilwoman would have never known that she had an additional $150,000 of NTI bond proceeds available for 11 11/29/07 - APPROPRIATIONS - BILL 070940, ETC. reprogramming. Further, had Councilwoman Campbell not requested the Controller's review, she would have never known that expenses for acquisitions in another district were being charged to her district, nor would she have ever known acquisitions had proceeded without the necessary City Council approvals. If the conditions outlined above exist within the Fourth Council District NTI acquisition allocation of bond proceeds, I believe that we can be sure that they or other unreported conditions exist in other districts and within the City Significant line item. I'm now convinced that the only way members of this Council will ever get an accurate and complete accounting of the $89 million of NTI expenditures of bond proceeds and supplemental funds for acquisitions is by having the City Controller conduct an audit of these expenditures. Therefore, I strongly urge you to approve this legislation to 12 11/29/07 - APPROPRIATIONS - BILL 070940, ETC. authorize and pay for the City Controller's audit. Thank you.
Good morning, Madam Chairperson. I'm Joyce Eubanks, and I am thankful for the opportunity to speak on behalf of Councilwoman Campbell, who desperately wanted to be here this morning, but she asked that I convey to this body her sincere desire that this bill be voted out of Committee favorably this morning. She wished that I convey to this body that it is her belief that it is critical and crucial to the representation that Councilpersons are able to provide their constituents that Councilpersons have an accurate and precise determination as to the amount of money that the Councilperson has to operate with. It undermines the nature and the type of programs that the 13 11/29/07 - APPROPRIATIONS - BILL 070940, ETC. Councilperson is able to provide its constituents, and that accuracy is in fact the hallmark, and that she wished that you understood that it is her belief that as gatekeepers of the taxpayers' money, that you, the Council, is entitled to know how much money they accurately have and that that information should be accurate when it is received by Council. Accordingly, it is her request that you consider strongly moving this bill out of Committee favorably and that will, from her standpoint, ensure that the taxpayers' dollars are being spent as this body has so directed. Thank you.
Thank you very much. I'd like to acknowledge we have Councilman Rizzo with us this morning. Are there any questions from members of the Committee? (No response.)
There 14 11/29/07 - APPROPRIATIONS - BILL 070940, ETC. not being any, I think that ends our public hearing in Appropriations. Now we'll go into our public meeting. The Chair recognizes Councilman Clarke.
Thank you, Madam Chair. Madam Chair, I move that Bill No. 070940 be reported out of Committee with a favorable recommendation and request for rules suspension as to allow reading at the next session of Council. (Duly seconded.)
Therefore, Bill 070940 will be reported out of this Committee with a favorable recommendation with a suspension of rules so as to permit first reading at our next 15 11/29/07 - APPROPRIATIONS - BILL 070940, ETC. session of Council. Councilman Clarke.
Madam Chair, I move that Bill 070941 be reported out of Committee with a favorable recommendation and request for rules suspension as to allow reading at the next session of Council. (Duly seconded.)
Therefore, Bill 070941 will be reported out of this Committee with a favorable recommendation with a suspension of rules so as to permit first reading at our next session of Council. The Chair recognizes Councilman Goode.
Thank you, 16 11/29/07 - APPROPRIATIONS - BILL 070940, ETC. Madam Chair. I move that Bill 070942 be reported out of Committee with a favorable recommendation, that the rules of Council be suspended so as to permit first reading at our next Council session. (Duly seconded.)
Therefore, Bill 070942 will be reported out of this Committee with a favorable recommendation with the rules of Council suspended so as to permit first reading at our next session of Council. The Chair recognizes Councilwoman Miller.
Thank you, Madam Chair. I move that Bill No. 25 070952 be reported out of this Committee 17 11/29/07 - APPROPRIATIONS - BILL 070940, ETC. with a favorable recommendation and further move that the rules of Council be suspended so as to permit first reading at our next session. (Duly seconded.)
Therefore, Bill 070952 will be reported out of this Committee with a favorable recommendation, that the rules of Council be suspended so as to permit first reading at the next session of Council. I'm sorry. I didn't mention the bill. Bill 07052 -- 952. I'm starting the morning off good. So, therefore, Bill 070952 will be reported out of this Committee with a favorable recommendation as to permit first reading at our next session of 18 11/29/07 - APPROPRIATIONS - BILL 070940, ETC. Council. That ends our hearing on Appropriations. Thank you all very much for being here. (Committee on Appropriations adjourned at 9:45 a.m.) - - - 19 CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the foregoing matter on November 29, 2007, and that this is a true and correct transcript of same. ______________________________ MICHELE L. MURPHY RPR-Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)