COUNCIL OF THE CITY OF PHILADELPHIA2 COMMITTEE ON APPROPRIATIONS3 Room 400, City Hall6 Philadelphia, Pennsylvania Thursday, February 17, 20117 9:15 a.m. PRESENT: COUNCILWOMAN JOAN L. KRAJEWSKI, CHAIR10 COUNCILMAN DARRELL CLARKE COUNCILMAN W. WILSON GOODE, JR.11 COUNCILWOMAN DONNA REED MILLER COUNCILMAN BRIAN J. O'NEILL12 COUNCILWOMAN MARIA D. QUINONES-SANCHEZ COUNCILMAN FRANK RIZZO, JR.13 BILL 110052 - An Ordinance authorizing transfers in appropriations for Fiscal Year15 2011 from the General Fund, certain or all City offices, departments, boards and16 commissions and from the Grants Revenue Fund, the Director of Finance...17 BILL 110054 - An Ordinance authorizing18 transfers in appropriations for Fiscal Year 2011 from the Grants Revenue Fund, the19 Director of Finance - Provision for Other Grants to the Acute Care Hospital Assessment20 Fund... - - -22 2
Good2 morning. The Appropriations meeting is3 now in session.4 Do we have someone here from5 the Administration?6 The Clerk will please -- I got7 up late.8 Will the Clerk please read the9 bill?10
Bill No. 110052, an11 ordinance authorizing transfers in12 appropriations for Fiscal Year 2011 from13 the General Fund, certain or all City14 offices, departments, boards and15 commissions, and from the Grants Revenue16 Fund, the Director of Finance - Provision17 for Other Grants to the General Fund,18 certain or all City offices, departments,19 boards and commissions; and20 Bill No. 110054, an ordinance21 authorizing transfers in appropriations22 for Fiscal Year 2011 from the Grants23 Revenue fund, the Director of Finance -24 Provision for Other Grants to the Acute25 2/17/11 - APPROPRIATIONS - BILLS 110052/1100541 Care Hospital Assessment Fund, the2 Department of Public Health and the3 Department of Public Health - State4 Payment.5
Thank6 you.7 Do we have anyone from the8 Administration here today?9 (Witness approached witness10 table.)11
Good morning,14 Councilwoman Krajewski. I'm Rebecca15 Rhynhart, Budget Director for the City of16 Philadelphia. Good morning to the other17 members of the Appropriation Committee.18 I appear before you today to19 offer testimony on Bill Nos. 110052 and20 110054.21 Bill No. 110052 requests a22 General Fund appropriation of23 $24,825,171, with 4,148,153 coming from24 the General Fund and the remainder,25 2/17/11 - APPROPRIATIONS - BILLS 110052/1100541 $20,677,118, transferred from the Grant2 Revenue Fund.3 Of the internal transfers, the4 City Planning Commission requests a5 transfer from Class 300 to Class 200 of6 15,000 to fund technical support for the7 Comprehensive Plan. The Office of the8 Inspector General requests an internal9 transfer from Class 100 to 200 of 60,00010 to fund a contracted investigator. The11 Office of Behavioral Health requests an12 internal transfer of $71,306 to maintain13 state-mandated City matching14 requirements. The Department of Records15 requests an internal transfer from Class16 100 to 300/400 of 55,000 to fund17 materials and supplies for the Central18 Duplicating Unit. The Department of19 Revenue requests an internal transfer20 from Class 100 to Class 200 of 120,000 to21 fund post amnesty work. The Zoning Code22 Commission requests an internal transfer23 to Class 100 of 15,000 to fund salaries.24 Of the larger transfers, the25 2/17/11 - APPROPRIATIONS - BILLS 110052/1100541 Fire Department requests a transfer from2 indemnities of 3.8 million to pay for the3 Lawrence Settlement, in which the City4 was ordered to pay overtime to paramedics5 for prior years. The First Judicial6 District requests a transfer of 6.67 million to fund counsel and juror fee8 shortfalls, reimbursement for the Clerk9 of Quarter Sessions legal fees and to10 allow for the appropriation of additional11 revenues collected. An additional 2.512 million for Finance - Unemployment13 Compensation is requested to fund14 unemployment compensation benefits, an15 increased cost resulting from the federal16 extension of unemployment compensation17 benefits for one year. The Streets18 Department requests 5.6 million to fund19 additional salt, the purchase of LEDs and20 to fund higher-than-projected tipping21 fees. The Department of Public Property22 requests 2.8 million to fund maintenance23 and custodial work, as well as space24 rental costs. The Office of Property25 2/17/11 - APPROPRIATIONS - BILLS 110052/1100541 Assessment requests 1.7 million for the2 continuation of project manager services3 in the development of the CAMA system, to4 support a department-wide review of OPA,5 and to fully fund former School District6 staff members who were transitioned into7 civil service during Fiscal '11. The8 Defender Association requests 675,000 to9 cover health insurance increases and the10 addition of sexual abuse coverage to11 their professional liability insurance.12 The City Commissioners requests 77,500 to13 pay for a recently held special election.14 The City Controller requests 642,000 to15 pay for a forensic audit and a citywide16 audit.17 Bill No. 110054 requests18 increased appropriations in the Acute19 Care Hospital Assessment Fund of 2.520 million. This will enable the Health21 Department to purchase critical22 contractual services for the hiring of23 staff to configure and maintain the24 electronic health record system for25 2/17/11 - APPROPRIATIONS - BILLS 110052/1100541 scheduling, billing and clinical data2 from several sources in various domains.3 I respectfully request that you4 report these bills out of Committee with5 a favorable recommendation, and I further6 request that the rules of Council be7 suspended so as to permit first reading8 at the next session.9 I appreciate the opportunity to10 testify on behalf this -- I'm sorry;11 before this Committee today and would be12 happy to answer any questions you may13 have. Representatives from the14 departments are here as well.15
The16 departmental testimony will be read into17 the record. Okay?18
Thank24 you.25 2/17/11 - APPROPRIATIONS - BILLS 110052/1100541 Are there any questions from2 members of the Committee?3 Councilman Rizzo.4 I'm sorry. I didn't see your5 light. Councilwoman Sanchez.6
Thank7 you, Madam Chair.8 I want to go through a couple9 of the items. First of all, of these10 appropriations, which ones represent an11 increase in funding versus a reallocation12 of current funding levels?13
We included in14 the testimony, there's a list, and I'll15 pull this up. You should have a list16 called Exhibit A at the very back, which17 goes through the departments that have an18 internal transfer versus those that have19 a net increase or decrease. I can go20 through those. I think they're listed21 out there.22
So if we23 go through the list, First Judicial24 District, this is all previously25 2/17/11 - APPROPRIATIONS - BILLS 110052/1100541 allocated Clerk of Quarter Sessions2 money?3
No. About --4 there's over 5 million that we owe the5 courts due to signed Memorandums of6 Understanding with them. They could go7 into more detail about that, but we do8 have signed agreements where a certain9 amount of revenues collected have to be10 remitted back to them.11
I believe that14 would be. But the list wouldn't -- if15 you want the actual detailed list of all16 the agreements, that wouldn't be part of17 their testimony.18
No, no,19 no. I'm trying to distinguish from this20 list that you have here what represents21 new spending and just current spending22 reallocated. So that's why I want to go23 through it.24 So of the 6.6 million for the25 10 2/17/11 - APPROPRIATIONS - BILLS 110052/1100541 First Judicial, you're saying 5 million2 was not part of what we allocated for the3 Clerk of Quarter Sessions?4
That's right,5 5.3 million of additional revenues. And6 then there's also a million for the7 courts for counsel and juror fee8 shortfalls. So the amount for the Clerk9 of Quarter Session legal fees is 78,000.10
You're11 going to have to bear with me since I'm12 just getting this this morning.13
Would it be17 helpful if someone from the courts came18 up to join me?19
Good morning,25 11 2/17/11 - APPROPRIATIONS - BILLS 110052/1100541 Councilwoman. My name is Dave Lawrence.2 I'm the Court Administrator. With me3 today is Kevin Cross, our Deputy Court4 Administrator for Financial Services.5
I6 wanted -- I was trying to get a7 clarification between what was8 court-related over-expenditure, because9 our Budget Director has explained that10 5.3 of the 6.6 million requested is not11 currently in our budget. So I wanted to12 distinguish which -- the 1.3 is for13 general operating of the courts and 514 million of that is for the Clerk of15 Quarter Sessions?16
Yes,17 Councilwoman. The $5 million is the cost18 we incurred in assuming the19 responsibilities of the Clerk. It's not20 really an increase in funding. It's21 funding that used to go to the Clerk of22 Court, which is now coming to the First23 Judicial District.24
That was25 12 2/17/11 - APPROPRIATIONS - BILLS 110052/1100541 my question --2
That's7 what I was just trying to get to. I want8 to know what the net effect is, and if9 it's just reallocation of funding, I10 wanted to make that distinction.11 So it's a reallocation of12 funding. The only thing that we're13 really requesting in additional funding14 is the 1.3 for the court expenses?15
Yeah. The16 counsel fee shortfalls, which we appear17 have been before counsel parentally, as18 well as juror fee shortfalls, we're19 asking for that to be included in the20 transfer ordinance.21
How is25 13 2/17/11 - APPROPRIATIONS - BILLS 110052/1100541 this different? Because I know when we2 went through the budget piece, you were3 given a reduction in your budget. So we4 are now month -- we're in February.5
How much7 more do you expect you're going to have a8 shortfall before the end of the year?9
Without this10 transfer ordinance, the shortfall would11 be $856,000. This is a figure we project12 out every year, and every year we're13 somewhat underfunded in that area and14 look to receive that through a transfer15 ordinance.16
So you17 will not be coming back for additional18 funding; this will take you through the19 end of the year based on projections?20
This will enable21 us to pay our bills through the end of22 the year.23
Okay.24 Thank you. Thank you.25 14 2/17/11 - APPROPRIATIONS - BILLS 110052/1100541 There are some additional -- we2 haven't read all the revenue testimony.3 The City Controller's Office, the4 $642,000 in forensic audit, can someone5 speak to that?6
Sure. Four7 hundred and sixty-two thousand is for the8 forensic audit of the Sheriff's Office9 and 180,000 is for additional funds for10 the Controller's Office to conduct the11 citywide audit in its tighter timeframe.12
Is13 there -- I don't see the testimony from14 the Controller's Office in the packet.15
I think it was16 added a little bit later than the main17 pack.18
And the transfer20 for the citywide audit I believe occurred21 last year as well.22
Then23 there is -- again, there's no other item24 here that requires additional funding;25 15 2/17/11 - APPROPRIATIONS - BILLS 110052/1100541 the rest of these are all2 interdepartmental transfers? Anything3 else -- the indemnities with the Fire4 Department is kind of self-explanatory5 through the testimony. Is there any6 other item here?7
There are8 several on the top of that Exhibit A that9 would be increases.10
The11 Streets Department, that's because of the12 snow removal, right? Is that what we're13 saying, that there's --14
There's two15 different lines for the Streets16 Department. The Streets line which is on17 Exhibit A, which is 2.6 million, there's18 1.9 million additional for salt costs for19 the snow and then 700,000 to purchase LED20 lights, and we get PECO incentive21 payments in a larger amount, so we're22 using that to purchase LED lights. Then23 there's a Streets line for 3 million24 which is additional as well.25 16 2/17/11 - APPROPRIATIONS - BILLS 110052/1100541
Can we2 speak a little bit about the $3 million3 in additional tonnage for curbside trash4 collections? Can someone from the5 Streets Department speak to that?6 (Witness approached witness7 table.)8 COMMISSIONER TOLSON: Good9 morning. My name is Clarena Tolson,10 Commissioner of the Streets Department.11
There is12 an increase because of tonnage. I wanted13 you to speak a little bit about was14 that -- why that was unexpected. Was it15 because we have less amount of recycling16 going on or we just were under budget?17 COMMISSIONER TOLSON: We18 actually are doing very well with19 recycling. Our diversion is going very20 nicely. The reason for this increase is21 because we had taken a very dramatic22 reduction in what we budgeted for tonnage23 this year. Our tonnage last year was24 $629,000. This year we budgeted for25 17 2/17/11 - APPROPRIATIONS - BILLS 110052/1100541 553,000 tons. I'm sorry. I think I said2 dollars. I meant to say tons, 629,0003 tons. We budgeted for 553,000 tons. Our4 tonnage probably is coming closer to5 600,000 tons. So to make up that6 difference of approximately 47,000, we7 need to make an additional -- 47,000 tons8 coverage, which is about $3 million.9
So you10 expect this will carry you through the11 rest of the fiscal year?12 COMMISSIONER TOLSON: Through13 the rest of the year, yes.14
Thank15 you.16 To the Budget Director, how is17 the Administration going to offset these18 increases?19
Any increases in20 expenditures impacts the bottom line fund21 balance, and so we take it from the22 budget from provision from other grants.23 But practically it impacts the fund24 balance. So our quarterly that came out25 18 2/17/11 - APPROPRIATIONS - BILLS 110052/1100541 a few days ago is showing an anticipated2 fund balance of about 13 and a half3 million, which is down from the budget4 number in previous projections.5
So what6 is our projected shortfall? If you're7 saying we were at 13 million, this is a8 $20 million --9
No. Now, after10 these adjustments, now our projection for11 the year end will be 13.5 million.12
No other13 questions, Madam Chair.14 COUNCILWOMAN KRAJEWSKI:15 Councilman Rizzo.16
Thank you,21 Madam Chair.22 Good morning. Real briefly.23 The increase in the Office of Property24 Assessment, will that in any way affect25 19 2/17/11 - APPROPRIATIONS - BILLS 110052/1100541 the ability to facilitate the movement to2 full valuation? Because I know there's3 some concerns about the timing as to when4 that happens. Is this going to in any5 way --6
It will help7 move that process along. So the 1.58 million of this transfer, though, is to9 fully fund the School District positions10 or the positions that were funded by the11 School District that are now in the12 Office of Property Assessment. So we do13 have in our Five-Year Plan our updated14 numbers -- sorry; not our Five-Year Plan,15 our updated budget numbers, the16 expectation that the School District will17 fund those. So 1.5 of the 1.69 are the18 School District positions. The remaining19 190,000 is for the continuation of moving20 towards the process of full valuation.21 So there is -- they could speak22 in more detail about that if we want to23 call them up, but it's for two contracts24 to assist in that process.25 20 2/17/11 - APPROPRIATIONS - BILLS 110052/1100541
Without2 asking you for a budget preview, I'm3 going to ask you for a budget preview.4 Is it likely in Fiscal '12, which we will5 be receiving very shortly, that there6 will be a carryover from this particular7 increase in budget for Office of Property8 Assessment or additional dollars to9 facilitate that movement towards full10 value in 2014?11
In Fiscal '13?12 It is possible. It's something that as13 we're going through the budget process in14 the next week or so that we are15 considering, because we do -- that is a16 very important goal of the17 Administration, and I know that you share18 it. So that is --19
Well, we20 all should share it. We have a little21 hole there.22 Okay. That's it. Thank you,23 Madam Chair.24
Thank25 21 2/17/11 - APPROPRIATIONS - BILLS 110052/1100541 you.2 Are there any other questions?3 (No response.)4
Is8 there anyone else here to testify?9 (No response.)10
Seeing11 none, that ends our public hearing in12 Appropriations. We'll now go into our13 public meeting.14 The Chair recognizes Councilman15 Clarke for the purpose of Bill 110052.16
Thank you,17 Madam Chair. Madam Chair, I make a18 motion that Bill No. 110052 be reported19 out of Committee with a favorable20 recommendation and request for rules21 suspension as to allow reading at the22 next session.23 (Duly seconded.)24
All25 22 2/17/11 - APPROPRIATIONS - BILLS 110052/1100541 those in favor?2 (Aye.)3 COUNCILWOMAN KRAJEWSKI:4 Opposed?5 (No response.)6 COUNCILWOMAN KRAJEWSKI:7 Therefore, Bill 110052 will be voted out8 of this Committee with a favorable9 recommendation with a suspension of10 rules.11 The Chair recognizes Councilman12 Clarke on Bill 110054.13
Thank you,14 Madam Chair. I move that Bill No. 11005415 be reported out of Committee with a16 favorable recommendation with rules17 suspension as to allow reading at the18 next session of Council.19 (Duly seconded.)20
All21 those in favor?22 (Aye.)23 COUNCILWOMAN KRAJEWSKI:24 Opposed?25 23 2/17/11 - APPROPRIATIONS - BILLS 110052/1100541 (No response.)2 COUNCILWOMAN KRAJEWSKI:3 Therefore, Bill 110054 will be voted out4 of this Committee with a favorable5 recommendation with a suspension of rules6 so as to permit first reading at the next7 session of Council.8 Thank you all very much.9 (Committee on Appropriations10 concluded at 9:35 a.m.)11 - - -12 13 14 15 16 17 18 19 20 21 22 23 24 25 24 1 CERTIFICATE2 I HEREBY CERTIFY that the3 proceedings, evidence and objections are4 contained fully and accurately in the5 stenographic notes taken by me upon the6 foregoing matter on February 17, 2011, and7 that this is a true and correct transcript of8 same.9 --------------------14 MICHELE L. MURPHY15 RPR-Notary Public16 (The foregoing certification of this20 transcript does not apply to any reproduction21 of the same by any means, unless under the22 direct control and/or supervision of the23 certifying reporter.)24