Philadelphia City Council Committee on Finance, 22 Jun 2017

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From YouTube: Committee on Finance 6-22-2017

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The Committee on Finance of the Council of the City of Philadelphia held a Public Hearing on Wednesday, June 21, 2017 City Hall, to hear testimony on the following item:

170623 An Ordinance authorizing the Bond Committee to sell bonds at public or private negotiated sale, to provide funds toward various capital municipal purposes; providing for appropriations to the Sinking Fund Commission for the payment of such bonds; authorizing agreements to provide credit or payment or liquidity sources for the bonds in connection with issuance of the bonds, and certain other actions; providing for obtaining the consent of the electors to increasing the indebtedness of the City; and fixing a day and providing for arrangements for holding the election for obtaining such consent.

Finance
Chair: Councilwoman Jannie Blackwell (3rd District)
Vice Chair: Councilman Bobby Henon (6th District)

A

Good afternoon.

A

The Finance Committee is being called into session. We have a quorum to my left, Councilwoman charelle Parker to my right. Councilman bill, Greenlee, count them and David up councilman Allen down.

A

Councilwoman Cindy bad. Thank you we'll ask the clerk to read the title of the bill.

B

17:06 to three and an ordinance authorizing the bond committee to sell bonds at public or private negotiated sales to provide funds toward various capital municipal purposes, providing for appropriations to the sinking fund, commission for the payment of such bonds authorizing agreements to provide credit or payment or liquidity sources for the bonds in connection with issuance of bonds and certain other actions providing for obtaining the consent of the electors to increasing the indebtedness of the city and fixing a day and providing for arrangements for holding the election for obtaining such consent. Thank.

A

You very much we'll invite those who are going to testify forward.

A

Thank you very much. Please identify yourself for the record and begin your testimony.

C

Good afternoon, chairman Blackwell and members of the Finance Committee, my name is Rob du Bois I'm here to testify in support of bill number one zero one, seven zero, six, two three and with me is Palin Chen, the capital budget director.

C

The purpose of the bill is to obtain approval to place a loan authorization loan authorized question on the general election ballot on Tuesday November 7th, the loan questions-- questions-- increase in indebtedness and amount not to exceed one hundred and seventy two million dollars and that's to fund the FY 18 capital budget, and that was recently approved by City Council state law requires the city to place a question on the ballot before increasing and borrowing authority. As you can see from testimony, we have plenty of borrowing. Capacity remaining.

C

The testimony also lays out how the dollars were allocated in the capital budget I'm in order to provide appropriate time to advertise the ballot question prior to November 7th. The bill should be reported out and received first reading earlier in June, 22nd and finally, attached to the testimony is the proposed ballot question. I respectfully request you report the bill out of committee with a favorable recommendation and that the rules of council be suspended to permit first reading at the next session of council.

C

That concludes my written testimony and we'd be happy to answer any questions you may have Thank.

A

You mr. Deveaux, are there questions councilman dass thank.

D

You ma'am, gentlemen and uh good afternoon. Yes,.

C

D

I know it's in the paper: I just want to make sure I'm clear on the municipal buildings, for example, of 95 million. Is that basically repairs to existing buildings? Yeah.

C

D

Is and of those jobs been bid or there beeping? No.

C

So this is for the money, that's in the FY 18 capital budget. So this isn't for work, that's started yet and it then the money won't be available until the election results are certified. So none of this money's available until December, so that work really won't start until them. So.

D

This has to go through the whole process, we're just authorizing it correct.

C

D

Your experience when we authorize this amount of money, what percentage is typically actually invested in.

C

D

What we're going to really spend 95 we're going to spend 75 or 80 so.

C

What we do the way we determine when to borrow is basically it's really on cash needs. So when our cash gets low, we borrow again- and we typically spend it within really two years, and then we borrow again so it's just based on so everything that we borrow is spent man.

D

So this is when we do these projects, it's not based on a draw down on a loan. We go out and borrow the money and then put it in our account already.

C

D

Interest, whether we do the work or not we're paying the interest well,.

C

We borrow based on our projected cash flows and so the far it's kind of a weird dynamic where the borrowing won't list these specific projects it'll show what we're going to do for the following two years. This is just authorizing us when we're ready to borrow to borrow so.

D

It's not really for this. These projects, the money, won't.

C

Necessarily be for whatever we're spending or the following two years: okay,.

D

Thank you. Thank you very much. Thank you. Thank.

A

You any other questions. That concludes our hearing will now go into our stated meeting. The chair recognizes councilmember Heenan for motion on bill number, one: seven, zero, six, two three thank.

E

You, madam chair I, move that bill number one: seven, zero, six two three be reported for this committee with a favorable recommendation and further move that the rules of council piece is suspended to prevent first reading of this bill in our next council session. Second, it.

A

Is the move then properly seconded by bill number one: seven, zero! Six two three be reported from this committee with disabled recommendation and, furthermore, that the rules of counsel be suspended so as to permit first reading at our next session. All those all those in favor say: aye oppose the ice habit. The motion carries and bill number one: seven, zero.

A

Six two three will be reported from this committee with the favorable recommendation and a request that the rules of council be suspended so as to permit first reading at our next session of counsel counsel us accountable counsel. Thank you very much. This hearing is completed and thank you all for being here and that's getting it done very quickly. Thank.

C

You take your fingers done so quickly.