Thank you. The Chair recognizes Councilman Clarke.
Madam President, I have two bills for myself and I'm offering two resolutions and one bill on behalf of Councilwoman Blackwell.
I'm sorry, you have two bills and two resolutions?
Two bills for myself, and two resolutions and one bill for Councilwoman Blackwell.
Thank you. The Clerk will please read the title of the first bill.
An ordinance authorizing Tenet Health System Hahnemann, owner of the property AND RESOLUTIONS known as Hahnemann University Hospital, Broad and Vine Street, to construct and maintain underground conduit and 23 pedestrian light poles.
This bill will be referred to the appropriate committee.
And an ordinance authorizing the Commissioner of Public Property on the behalf of the City of Philadelphia to accept in the School District of Philadelphia conveyance of title to a certain parcel of land located at 11th and Durango Streets.
This bill will be referred to the appropriate committee. The Clerk will please title of the third bill.
And an ordinance to amend the Philadelphia zoning maps by changing the zoning designations of certain areas of land located within an area bounded by 48th Street, Brown Street, 44th Street, and Fairmount Avenue.
The bill will be referred to the appropriate committee. The Clerk will please read the title of the first resolution. AND RESOLUTIONS
A resolution approving the redevelopment contract of the Redevelopment Authority of the City of Philadelphia for the redevelopment and urban renewal of a portion of Melville Urban Renewal Area.
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 motion carries. The Clerk will please read the title of the second resolution.
A resolution approving the redevelopment contract of the Redevelopment Authority of the City of Philadelphia for the AND RESOLUTIONS redevelopment and urban renewal of a portion of the Upland Urban Renewal Area.
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 say aye. (Aye.)
The ayes have it. The resolution has been adopted. The Chair recognizes Councilman Longstreth.
Thank you. The Chair recognizes Councilman Rizzo.
The Chair thanks the gentleman. There are no reports from committees today. And at this point I think we would like to call for a special order of business. I'll tell you it's a bittersweet day. We have one of our very, very special people, Estelle Richman, who will be leaving us. And I just want to publicly thank her for her professionalism and commitment. She has been absolutely wonderful. And I know that we're all going to meet with her. I want to publicly thank her for actually being there for each and every one of the Councilmembers as they approached her. And at this time I would ask Estelle Richman to please join Councilwoman Tasco at the podium. I know that you're going to be annoyed with us. It is my understanding that she wants absolutely no recognition whatsoever, but she certainly deserves it. (Applause.)
This indeed is a time for all of us in the City of Philadelphia. We have come to know Estelle Richman for her passion and love for the citizens of this City and thank her for the wonderful work she's done as our Health Commissioner, as a Managing Director, and so many hats she has worn during her tenure here. And we know that she will do good things in Harrisburg and we wish her well. So I am honored that President Verna has asked me provide this resolution honoring Estelle Richman. Whereas, when Estelle Richman accepted the position of Managing Director on December 1, 2001, she became in effect Chief Operating Officer of the City of Philadelphia. She brought to this challenge a proud history of academic and professional accomplishments, having served in the public sector for more than 25 years; and Whereas, Ms. Richman is a nationally recognized expert on behavioral health -- having won a Good Housekeeping Award for that -- children's services and other social services. She has been honored by the American Psychiatric Association, American Medical Association, the Ford Foundation, and others in the Behavioral Health System, won the 1999 Innovations in American Government Award given by the Kennedy School of Government at Harvard; and Whereas, in 1993, Ms. Richman was named Health Commissioner, a position in which she earned the respect of her superiors, colleagues, and staff. In 2000, she became the Director of Social Services, and her strong advocacy reaffirmed her reputation as a dedicated professional and a truism leader; and Whereas, as Managing Director, she has continued to win praise and expand her public persona. She is widely regarded as an excellent and intelligent manager, a careful and considerate listener, and a wise and decisive leader; and Whereas, while we are losing Ms. Richman to Governor Rendell who has tapped her for the position of Secretary of the Department of Public Welfare, we know that she will only be a phone call away. And we confidently expect great things for her. She is held in highest esteem throughout this City. Now, therefore, resolved by the Council of the City of Philadelphia that we hereby honor and commend Ms. Estelle Richman. We thank her for her distinguished work on behalf of this government and citizens it serves, and we wish her great success as a member of the Governor's cabinet. Further resolved that an engrossed copy of this resolution be presented to Ms. Estelle Richman as evidence of the deep respect and sincere admiration of this legislative body. Certification that this is a truism and correct copy of the original resolution adopted by the Council of Philadelphia on the 28th day of January 2003. It is introduced and signed by President Anna Verna and sponsored by all Members of City Council. We wish you well. We thank you for the wonderful service you provided us, and we look forward to our continued relationship. (Applause.)
The Chair recognizes Ms. Richman for brief remarks, please.
Thank you. Council President is right. I had tried to avoid this. This has been one of the toughest decisions of my life to leave at this point in time. Talking to people and saying good-bye is something I was hoping avoid because it is so tough. I have lived and worked in the City for 14 years and I love it. And having worked for actually three Mayors, coming in the Mayor Goode Administration and working with Mayor Rendell and now Mayor Street has been 14 of the best years of my life, and I've been able to have a dream, see that dream in action, be challenged and hopefully meet those challenges, worked with every Member of Council on different projects that have been important to the constituents and residents of the City of Philadelphia, and it's just been an unbelievable great experience. My hope is, as I continue -- I'm still here. I plan to be a resident of Philadelphia. I plan to continue to take advantage of this opportunity that seems to come once every hundred years of having a Philadelphian as Governor to try to help the rest of the state to understand that we are a special City. We have a lot to add. But at the same time, my mission will always be people, the effectiveness of government and to prove that we here in Philadelphia, as we here in Pennsylvania, provide a great model for this country. of you for this recognition. I will continue to work hard on your behalf and on the behalf of the people of Philadelphia as well as on behalf of the people in the great Commonwealth of Pennsylvania. So thank you very much. (Applause.)
The next order of business is the consideration of the Calendar. The Clerk will please read the bills on the First Reading Calendar.
Bill No. 020496, an ordinance amending Session 9-205 of the Philadelphia Code entitled "Sidewalk Sales," by prohibiting sidewalk sales from portions of 18th Street Callowhill Street.
And Bill No. 020634, an ordinance amending Title 4 of the Philadelphia Code, Subcode PM Maintenance Code by amending requirements applicable to vacant premises, all under certain terms and conditions.
The chair agrees. 1/28/03 - STATED - 2ND READING AND FINAL PASSAGE The bills read by the Clerk will be placed on the Second Reading and Final Passage Calendar for our next Session. That concludes the First Reading Calendar. The Chair now recognizes Councilwoman Tasco for the purpose of calling up the bills on the Second Reading and Final Passage Calendar to be considered.
Madam President, Bill 020758 is called up for second reading and final passage. Bill 020808 will be called for an amendment. All other bills will be held.
The Chair thanks the Councilwoman. The Clerk will please read the title of Bill No. 020808.
An ordinance extending the discount period and the due date for payment of real estate taxes due in 2003 and reenacting special provisions for additions to tax penalties and interest if such real estate taxes are paid after the due date, all under certain terms and conditions. 1/28/03 - STATED - 2ND READING AND FINAL PASSAGE
Thank you, Madam President. I offer an amendment -- I believe all Members of City Council have received a copy -- to Bill No. 020808, and I move for its adoption. (Duly seconded.)
It has been moved and seconded that the amendment be adopted. All in favor will signify by saying aye. (Aye.)
The ayes have it, and the amendment is adopted. And the bill will be placed on our Second Reading Final Passage Calendar for our next Session.
The Clerk will please read the title of Bill No. 020758.
An ordinance amending Title 4 of the Philadelphia Code Subcode A by amending provisions relating to fees assessed for certain licenses and permits and amending provisions relating to the posting of certain permits and 1/28/03 - STATED - 2ND READING AND FINAL PASSAGE licenses, all under certain terms and conditions.
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.
Councilman Nutter. 1/28/03 - STATED - 2ND READING AND FINAL PASSAGE
Aye. The ayes are 16, the nays are 0. A majority of all Members of Council having voted in the affirmative, the bill passes. That concludes the Calendar. The time has come for us to consider the Mayor's presentation of his annual budget message. The Philadelphia Home Rule states the Mayor shall submit to Council not later than 90 days the Fiscal Year Operating Budget message and a proposed Operating Budget ordinance for the ensuing Fiscal Year. At the same time the Mayor shall the recommended Capital Program and Capital Budget as received from the Planning Commission to the extent proved by the Mayor. I now appoint the following committee to escort the Mayor: Councilwoman Krajewski, Councilwoman Tasco, and Councilman O'Neill. Please proceed. SERGEANT AT ARMS: Madam President, the Mayor has arrived. (Applause.)
Ladies and gentlemen, I am pleased to introduce the Mayor of the City of Philadelphia, Mayor John F. Street. (Applause.)
Good morning, President Verna, Members of City Council, special friends and distinguished guests. 3 billion General Fund Operating Budget and my proposed Capital Budget and Program, along with my proposed Five-Year Financial Plan for FY '04 through '08. This plan contains approximately $319 billion in wage and business tax reductions and approximately $500 million of cost-saving and 1/28/03 - STATED - 2ND READING AND FINAL PASSAGE revenue-generating proposals. Notwithstanding our state constitutionally imposed capital borrowing limits, we have crafted an affective use of limited capital resources to provide for the maintenance of the City's existing facilities. I believe the adoption of these budgets will move us closer to being the world-class city we all want. Across the nation, a deep and persistent recession has plagued havoc with federal, state, and local budgets. Philadelphia is not immune. A bad economy is simultaneously driving down our revenues and driving up our costs. Thankfully, we are in better condition than most local governments because of the fiscal restraint we have shown over the past decade. With your assistance, we have cut, streamlined, and rationalized the operations of a government to meet the economic and service challenges of our times. With the help of a dedicated work force, men and women in our City, we have done more with less and found ways to better do business. With the budget I submit to you today, we will step up our efforts to modernize this government and to improve the quality of life for 1/28/03 - STATED - 2ND READING AND FINAL PASSAGE all Philadelphians. I am proud that we have resisted the temptation to ease the burden on the government by placing higher taxes on our citizens. Other governments are routinely raising taxes and cutting vital services as they struggle with their budgets in these difficult economic times. In the '90s working in tandem with a great Mayor Ed Rendell, whose strong leadership will be as valuable to the Commonwealth of Pennsylvania now as it was to Philadelphia a decade ago, we pulled this City back from the abyss. Surely, Ed Rendell left Philadelphia in a much stronger position than he found it. But let us not forget the challenges we still face when we took office three years ago: Philadelphia Gas Works was on life support. We were in danger of losing the Eagles and Phillies because there was no commitment to build new sports facilities. Our public school system was, notwithstanding slow but steady progress, failing largely because it lacked adequate state financial support. People in neighborhoods felt neglected, convinced that the development of Center City had 1/28/03 - STATED - 2ND READING AND FINAL PASSAGE taken precedence over their everyday problems of crime, drug violence, blight, and abandonment. And we had completed the longest period of economic expansion in the history of this country, leaving us with the challenge of continuing our progress in tough economic times. Today, PGW is on sound financial footing. New state-of-the-art, world-class sports facilities are being built. Parents, teachers, and children are experiencing real change in public education as the state is contributing millions more than when we took office. Neighborhoods are safer and cleaner. We have removed over 150,000 abandoned cars, cleaned over 32,000 vacant lots of more than 25 tons of trash, and reduced the incidents of crime, violence, and homicides citywide through an internationally renowned Operation Safe Streets Program. We have built upon the foundation we inherited three years ago, turning our attention to neighborhoods without turning our backs on Center City. World-class cities have strong, thriving, vibrant business districts. Ours ranks among the best. We are proud of the progress we have promoting Center City, economic development, jobs, and business in our City.
Our economic professionals are visiting every significant business whose lease expires over the next five years to determine actions necessary to keep them in our City. More recently, Radian Group has decided to remain in Center City with its 440 employees. We have marketed Philadelphia to suburban and national firms. American Business Financial Services and Keating Development Corporation have decided to move more than 1,000 jobs from the Philadelphia suburbs into Center City. Nationally-recognized retailers like Ikea and Lowes, financial service giants like Vanguard along with new economy business solicited by Innovation Philadelphia, including Abtech Labs, Inervase, and Living Naturally, are committed to begin operations in our City. These companies alone represent more than 1700 new high-paying jobs. New development is splitting up from one end of our City to the other; from the Philadelphia International Airport to the job-rich commercial and industrial corridor in the northeast; from the spectacular growth in University City to the and commercial activity taking place along the waterfront, including the navy yard and our planned efforts along the north Delaware River. I would match with development taking place in Philadelphia with any urban center in America. )
Our business and economic development activities will be discussed in greater detail next week at the annual Chamber of Commerce luncheon. However, the budget before you continues to provide stimulus funds for economic and job development, we fund Innovation Philadelphia and we continue to support the tax abatement initiatives that make Philadelphia a more attractive destination for business and development. Hospitality is an integral part of our local and regional economy. And Convention Center expansion is indispensable to both preservation and growth of hospitality. (Applause.)
I am committed more than ever to the expansion and the resolution of the labor management problems which plague the center. (Applause.)
We must protect the 57,000 jobs at 1.3 billion in annual wages the hospitality industry currently provides to our City. We must capture the new 3,000 jobs that expansion promises. And we must also protect the City's General Fund from the losses which will inevitably result from the continuation of the current untenable status and a failure to expand. Unfortunately, our progress toward both of these goals has been impeded by an outrageous partisan and, I believe, illegal power grab with the passage Senate Bill 1100. While the takeover was couched in the lofty language of reform and progress, it appears motivated by the age-old lust for patronage and power. If this action were merely a slap at a democratic Mayor and a democratic Governor-elect, I could understand, even if I didn't like it. After all, politics is a contact sport. (Laughter.)
But the negative impact of this partisan behavior extends beyond the world of politics and will deal a serious setback to the lives of people in our City. It jeopardizes the hundreds of millions of dollars in hospitality infrastructure, undermines the very important growth segment of our economy, compromises the labor management agreement endorsed by the board, five of the six unions who work in the building, and the contractors who bring building business into our City, and it stifles Convention and Visitor Bureau efforts to sign up future conventions. My concerns at the Convention Center are clear. The labor management issues, the return of our customers, and expansion. So today, I again call on Ed Coryell, Sr., to solve those problems by signing the Labor Cooperation Agreement, E-consult and hospitality leaders agree fixes the labor/management problem and paves the way for the return of our customers who could care less whether there are 13 or 15 members of the board. (Applause.)
I also call on House Majority Leader John Prezel and Former Governor Mark Schweiker to deliver on their assurances that they would solve the labor/management issue. (Applause.)
World-class cities do not treat their less fortunate children and families like second-class citizens. For over 35 years, I have lived in many of the neighborhoods of this City, and my four children have attended public schools. That experience has deepened my understanding of what needs to be done to make Philadelphia a city where every child has a chance to succeed. To protect their future and the future of our City, we must continue to aggressively reform the Philadelphia Public School System. (Applause.)
The leading cause of middle class urban flight may well be deteriorated under-performing public schools. Good schools produce a trained work force which is important to attract and retain businesses. The work force investment board and community college are important contributors to this mission. But they are no substitute for first-rate public schools. (Applause.)
As the first Philadelphia Mayor given immediate responsibility for public the voters, I embrace the challenge. I appointed Debra Kahn as the local Secretary of Education and a school board under the leadership of Pedro Ramos and Dorothy Rush. Together we took strong actions. We found big savings, changed the management, and negotiated a reform contract with our teachers. But we were keenly aware that the City alone could not assure our children and families the stability and quality education they deserve. So in July of 2001, I communicated to Governor Ridge and later Governor Schweiker my unwillingness to continue the pattern of state underfunding of our district while simultaneously having to endure the criticism of local officials for not doing our job, that the state should either become our partner in managing the Philadelphia Public School System or run it on its own. When faced with the prospect of actual running the fifth largest district in America, Governor Ridge and later Governor Schweiker reached the only rational conclusion: The State and the City had to become truism partners in reforming public education in Philadelphia. I agreed with that arrangement then, agree with it now. (Applause.)
That partnership initiated 18 months ago has produced more than $120 million of recurring financial support for the School District of Philadelphia and has inspired hope in our parents and teachers. It has created a constructive bipartisan environment where concerned leaders, including Jim Nevels and Paul Vallas are working with us to create clean and modern schools where children get the education they need, where we can attract qualified teachers who have the ability to inspire our children to learn, and where all public schools can be sources of neighborhood pride and hubs of activity for children and adults. With so much at stake, we can't afford to claim to a failed status quo or discard ideas that might help our children. That's the reason I have been a strong advocate for community-sponsored charter schools that provide solid educational alternatives and why I'm willing to experiment with private management of some schools. But I am gratified that one idea I strongly opposed was discarded: Management of our entire school system schools, a private, profit-making corporation. (Applause.)
For the Philadelphia Public Schools, the bottom line today, tomorrow, and always should be student achievement, not investor profits. (Applause.)
We are encouraged by Governor Rendell who expects students to achieve at high levels, but also recognizes that adequate funding is essential to do the job. We have made progress in reforming our schools. However, no one deserves more credit than this Council for the progress we have made. You have consistently and unanimously supported public education. Our increased local contribution which enabled the School District to support deficit financing has restored short-term financial stability so that real education reform can take root. The FY '04 Operating Budget requests approximately $605 million to support public education in Philadelphia, making education our largest single investment of local tax revenue. (Applause.)
Beyond that, this budget extends the opportunity for thousands of children to participate in after-school and youth development programs, and continues our support for beacon schools. These problems provide our children with supervised activities during the perilous weekday hours between and p.m. and for many activities during the weekends, vacations, and holidays. (Applause.)
We are working toward the day when every child in Philadelphia who needs such a program has one. But in these times, especially in these hard times, we must do more to protect children and strengthen families. Today, I am announcing the proposed creation of three new initiatives to significantly increase our capacity to serve children and families in our City: First, a $5 million child care health and safety fund. (Applause.)
This fund would make low and no-interest loans available to child care and to make capital improvements to their facilities to meet the health and safety standards necessary for licensing certification. We will attempt to get foundations and other private partners to match with this 5 million with another $5 million. Our goal is to have an additional 5,000 children eligible for state subsidy over the next five years. This will allow the City to serve several thousand more children at no additional cost to the City. Secondly, we propose to create a $30 million Free Library expansion fund. (Applause.)
This fund will be used to match the much needed private sector contributions to support the expansion of the country's first free library. An exiting newly bring expansion plan is well under way. The biggest users of our library are our families and children. Thousands of children only have access to technology, reading materials, and professional technical assistance through our extensive network of libraries. And finally, we propose a $25 million school-based facilities improvement fund. These be used to fund public school physical plant modifications to create safety zones in public schools with after-school programs and beacon school activities which take place during the evening and weekend hours. The City will work in cooperation with the School District to select schools and implement this program in coordination with the City Capital Program. As we continue to right-size our City's facilities, it is even more important to incorporate more recreational opportunities, after school and youth development activities within existing and/or new school facilities. Some may question how we can make such a commitment even as we cut our budget and operations to meet the challenges of the national recession. But by doing these things in this manner, we can minimize the current obligations of the City and greatly enhance our ability to leverage state and private dollars. Debt service to cover these investments is included in the plan. Beyond that, let me say again, given the needs of working families and children in our City, how can we afford not to move forward with modest improve their lives and the quality of life in all of our communities? (Applause.)
World-class cities must be safe. Crime, drug abuse, and violence are everybody's business. We have the finest police department in America. (Applause.)
And to those who live in neighborhoods historically plagued by blight, drugs, and violence, rest assured that our commitment to the success of Operation Safe Streets and crime reduction is unequivocal. (Applause.)
Our goal is simply to be the safest big city in America. We are encouraged by last year's double-digit decline in serious crime at a time when most big cities are experiencing increased crime. Without your support, without the support of this great Council, the great work being done by our Police Department would not be possible. In the FY '04 Operating Budget presented today, $485.2 million in General Fund money is allocated to the Police Department to continue funding the Operation Safe Streets Program and our policing efforts. (Applause.)
In the proposed Five-Year Plan, we allocate $2.31 billion to support our Police Department, the largest investment in public safety in the history of our City. World-class cities must have vibrant, clean neighborhoods, free from blight and deterioration, neighborhoods with affordable as well as market rate housing. Our Neighborhood Transformation Initiative is at the heart of our commitment to expand, revitalize, and preserve the neighborhoods of our City. It represents the most ambitious blight removal program ever attempted in an American city and has sent a resounding message confirming our commitment to leave no neighborhood behind. (Applause.)
Frankly, transforming and preserving neighborhoods may be the most difficult challenge facing American cities. Progress has been I would prefer, but thanks to this Council and others we are out of the starting gate with a program that is good for all neighborhoods. On February 3rd, I will provide a full briefing on the current state of our anti-blight program and announce the first large-scale NTI developments. With these projects, the City will turn the corner, taking many neighborhoods from points of despair and abandonment to communities of opportunity and hope. (Applause.)
NTI is at work in stable neighborhoods like the Northeast through programs like the Community Life Improvement Program which targets quality of life code violations, such as gravity, vandalism, and property neglect. This program has been so successful, it will be strategically expanded into other neighborhoods before the end of the year. Philadelphia is blessed to have the highest rate of homeowners among major cities in the country at 64 percent. (Applause.)
However, the integrity of occupied neighborhoods is threatened by predatory lenders and rental property owners. Some property owners rent to tenants who have Section 8 certificates. Although most of those tenants are good neighbors, let me be clear, irresponsible tenants and landlords will not be allowed to disrupt neighborhoods by failing to maintain their properties or monitor the conduct of their tenants to the detriment of hard-working, tax-paying homeowners in targeted neighborhoods like the Northeast, West Philadelphia, and Mount Airy. (Applause.)
However, we should reject the racially charged divisive debate that has regrettably has surrounded this issue in recent elections. Our job is to provide affordable housing while we promote unity and understanding among all Philadelphians. (Applause.)
World-class cities are inclusive. We must create expanding opportunities for African American, women, Hispanic, disabled, and other minority businesses in our City. As work continues on our stadiums, the Center, the SEPTA Frankford El and other economic developments in our City, we must ensure that traditionally excluded companies get fair opportunities for contracts and that all Philadelphians, included minorities, have fair employment opportunities on these job sites. (Applause.)
This was a priority of my dear friend and mentor Lucien Blackwell who dedicated his life to expanding opportunities for those who have been excluded, those who are sometimes referred to as the little guy. It is my priority and the priority of this Administration, and I encourage private sector businesses to make diversity in contracting a priority as well. The balanced budget and Five-Year Plan presented to you today retains the fiscal integrity that has been the hallmark of this Administration under the leadership of Janice Davis and Rob Dubow. (Applause.)
They, of course, have incorporated the tax reduction program we agreed to last spring. Since 1989 when I led the fight to stop increases in the wage tax and throughout the '90s when I provided leadership in City Council to pass annual budgets that included tax reductions, I consistently have been regarded as a fiscal conservative. Nothing about that has changed. By the end of the proposed Five-Year Plan, this Administration, with Council's support, will have reduced the overall tax burden on citizens and businesses by approximately $475 million. The disincentives built into our tax structure are obvious. It is my hope and expectation that the recently constituted Tax Commission will seriously pursue its mandate and make responsible recommendations for change which could lead to further tax reduction. Also, any significant rebound by the economy should also allow us to accelerate our tax reduction efforts. And as the storm clouds of this recession pass, I will be the first to step forward and lead that fight. (Applause.)
As we begin to look at this year's budget, let me point out that the single largest pressure point is the amount of our pension For a variety of reasons to be explained later by Janice Davis Rob Dubow in obnoxious detail, beginning in FY '04 we will make only the minimum pension contribution required by state law. This change will have no impact on the benefits received by those in the plan but will limit our pension payment increase to approximately $129 million over the plan, more than the amount that was included in last year's plan. Over the next several weeks, we must have the courage to make tough choices required to balance our budget, reform our government, and make the investments required to improve the quality of life for all Philadelphians. Beginning at the highest levels of this government, we have accepted this challenge. Within the next 30 days, I will eliminate 50 Administration positions mostly in the Mayor's Office, the Finance Department and the Managing Director's Office. The elimination of these positions will save $17.5 million over the five-year life of the plan. But equally important, it can serve as a catalyst for offices managed by independently elected officials to make real we can minimize the impact our budget reductions will have on direct services to citizens. The budget documents delivered to you today reflect a deduction of 1,614 city employees by FY '08. Substantial though it is, this reduction is not enough. We will work with City Council and the leadership of our work force to reduce the number of employees in the government by a total 2500 by FY '08. The process we begin today cannot be a simple budget balancing exercise. We must in more fundamental ways remake and recast the way we do business. The initial reduction of our work force will come through the DROP Program. We propose to eliminate 50 percent of the positions vacated by City employees in the DROP Program, excluding uniformed workers. The Five-Year Plan also includes a series of other initiatives designed to reduce our costs, improve services, and help us run the government smarter. I will highlight just a few. We will establish administrative clusters to centralize administrative activities across the departments. This reorganization will administrative practices, eliminate redundant positions and deploy existing staff more efficiently. Other functions like public information and grant writing will be centralized. These changes will help us reduce our work force by approximately 400 positions over the next five years and produce a savings of approximately $35.2 million, and in many cases, should improve services. (Applause.)
We plan to consolidated the eight existing department call centers into a single 24-hour constituent contact center. The City will establish a 311 telephone number for all City service requests and complaints. The new system will improve service and cut cost by eliminating duplicate call centers, department specific software applications, and service representatives. We estimate total savings of $4.7 million through FY '08 from this initiative. (Applause.)
The City will contract-out custodial services in specific City facilities. By using roving crews assigned to different sections of the City, we will save $2.6 million through FY '08. The Managing Director will establish the process that allows our municipal unions to compete for this work. Sixty-four percent of patients' visits to City health centers are by patients without insurance. The cost of those visits are absorbed by the City, but the Health Department has assigned to health centers to assist patients who may be eligible for medical assistance or coverage under the Children's Health Insurance Program. We estimate that this initiative will reduce the number of uninsured visits to health centers by 50 percent by the end of '04 and 30 percent by '08, providing the City with $21 million in new reimbursement revenues over the next five years. (Applause.)
Unfortunately, our ability to balance our Five-Year Plan cannot be achieved by reform measures alone. It is not possible to have a tax reduction program that will reach $319 million in the plan presented today, make important investments required to grow our economy and improve our neighborhoods, and whether the storm recessionary economy without having to make some service cuts. It is imperative, however, that we make careful decisions that are right for the future, not just for the short term. Philadelphia has a public infrastructure designed for 2.5 million people, but we now only have 1.5 million residents. Some of our facilities are poorly staffed, physically deteriorated, and more of a drain on our resources than service providers in our communities. We do contemplate closing or relocated some of those facilities. The City currently operates 156 recreation centers and 87 pools and a plethora of other stand-alone public buildings, including health centers, fire stations, police stations, schools, playgrounds, and the like. In fact, of the 20 largest cities in the country, we have the most pools per resident and second most recreation centers per resident. But you can rest assured that I do not propose to simply close facilities at random. Instead, our Administration will work closely with this Council, the School District, the community groups to determine which venues may be combined, could be incorporated into other facilities, and the best ways to invest some of the savings in other City or school district facilities so that residents may have, in some cases, higher quality of service than they may now have. In order to allow time to make thoughtful decisions, the plan does not assume any savings until FY '05. The plan eliminates our subsidy to the Phlash shuttle buses. Usage of the shuttle buses has deteriorated to levels that no longer justify the City's contribution, and other transportation is available. The elimination of City support will save $9.4 million through FY '08. My fellow public servants, I am aware that there will be some ankhs over these and other proposals in my budget. I am also keenly aware that as I deliver this message, we stand on the threshold of another municipal election. And elections rarely lend themselves to calm reflection, dispassionate discussion, and cooperation. (Laughter.)
However, my commitment is to make these next several months the exception. together, reason together, and commit together to establish new and meaningful measures that will make a better Philadelphia. Even if this year with the limitations placed upon us by a national economy suffering through the longest and deepest recession in more than a decade, we can improve the quality of life for all Philadelphians. We can give our children better opportunities. We can continue to attract new businesses and support our existing ones. We can further reform our government to meet the challenges of this new century. So let us view this budget process not merely as the fulfillment of our official responsibilities as elected officials of our City, let us see it as an opportunity to reaffirm our commitment to the promise of our great City and to the men and women and children who are proud to call Philadelphia home. God bless you. Thank you very much. (Applause.)
Are there any speeches on the part of the minority? (No response.)
Are there speeches on the part of the majority? The Chair recognizes Councilman DiCicco.
Thank you, Madam President. I failed to mention earlier when I offered the amendment to Bill No. 020808 that I had the conversations with the Mayor late afternoon -
Councilman, just a moment, please. Those leaving, would please do so quietly? We're trying to conclude our Session. Thank you very much. Councilman.
Thank you, Madam Chair. Late yesterday afternoon I had a conversation with the Mayer earlier when I introduced the amendment to Bill No. 020808. I am going to be working with the Administration over the next several days to look at the impact of extending the discount date. It is an open-ended amendment, I understand that full well. I think working with the Administration I may offer another amendment next week or possibly an entirely new bill that will address the issue of the discount period to better folks that we want to be included in that discount period. So I just wanted to make that statement. The Mayor just reminded. I forgot to say that.
Thank you, Councilman. Are there any other speeches on the part of the majority? (No response.)
Seeing none, the Chair recognizes Councilwoman Tasco.
Madam President, I move that Council stand adjourned until Thursday, February 6, 2003, at 10:00 a.m. (Duly seconded.)
It's been moved and seconded that Council stand adjourned until Thursday, February 6, 2003. All in favor will say aye. (Aye.)
The ayes have it. Council stands adjourned until Thursday, 6, 2003. Thank you. (Council adjourned at 11:45 a.m.) ¡›î› C E R T I F I C A T I O N I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of January 27, 2003, were reported fully and accurately by me, and that this is a correct transcript of the same. RE: STATED MEETING ___________________________ Lisa C. Bradley, RPR and Notary Public