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From YouTube: Committee on Finance 9-27-2016
Description
The Committee on Finance of the Council of the City of Philadelphia held a Public Hearing on Tuesday, September 27, 2016, at 10:00 AM, in Room 400, City Hall, to hear testimony on the following item:
#160767
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.
Chair: Councilwoman Jannie Blackwell (3rd District)
Vice Chair: Councilman Bobby Henon (6th District)
A
B
Number
16
07,
67
and
ordinance
authorizing
the
bond
committee
to
sell
bonds,
a
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
funds
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.
A
C
A
That
excuse
me
one
moment:
Rob
I'm,
sorry
share
notes.
We
have
a
quorum
to
my
left,
councilman
bob
pain
and
vice
chair
to
his
left,
Councilwoman
blondell,
rentals
Brown
to
my
white
right,
I,
said
white
to
my
right,
councilman
bill,
green
Lee
and
certainly
to
his
right,
councilman,
Allen
da.
Thank
you
thank
you
morning.
C
Council
Blackwell
and
members
of
the
committee
Rob
do
boat
and
director
finance
I'm
here
today
to
testify
in
support
of
bill
number
160
767
and
with
me
today
is
palin
chen.
The
deputy
budget
director
for
capital.
The
bill
is
exactly
identical
in
language
and
effect
to
bill
number
1,
06,
06
10,
which
council
passed
unanimously
through
weeks
ago.
The
only
difference
is
that
it
would
replace
the
bill
in
order
to
fix
a
technical
defect
under
the
complex
state
procedure.
C
The
administration
in
council
used
to
fund
the
annual
capital
budget
for
capital
eligible
items
like
trash
compactors
street,
paving
commercial
corridor
upgrades
improvements
to
police
and
fire
facilities.
That
state
act
requires
a
controller
certificate
be
filed
with
the
chief
clerk
of
council
prior
to
final
passage
of
a
bill,
putting
the
borrowing
on
the
ballot
the
prior
bill
passed
and
was
signed
into
law.
Without
that
certificate,
this
time
certificate
will
be
filed
before
final
passage
of
the
current
bill.
The
Act
requires
certificate
to
cover
the
expected
impact
on
the
city's
debt
limit.
C
As
with
the
prior
bill,
this
bill
seeks
to
obtain
approval
from
council
to
place
a
loan
authorization
question
on
the
general
election
ballot
on
tuesday
november
eighth.
The
loan
question
requests
an
increase
in
indebtedness
and
an
amount
not
to
exceed
180
4.3
million
to
fund
the
city's
fiscal
year.
2017
capital
budget,
the
council,
approved
last
spring
state
law,
requires
a
city
place,
a
question
on
the
ballot
before
increasing
his
borrowing
capacity.
As
of
July.
First
2016,
our
legal
debt
limit.
It
was
about
5.4
billion
dollars
in
the
amount
of
debt
applicable
to
that
limit.
C
It
was
about
1.7
billion.
As
a
result,
the
city
has
debt
capacity
of
about
3.7
billion
at
the
FY
17
capital
budget
for
geo
bonds
is
approximately
hundred
and
seventy
seven
million
dollars.
The
proposed
ordinance
includes
Nia
new
geo
loans,
any
in
the
amount
of
184
million
dollars,
if
approved,
the
loan
authorization
would
finance
capital
projects
and
we
show
how
they're
classified
by
each
category
in
order
to
provide
appropriate
time
to
advertise
the
ballot
question
prior
to
the
november
eighth
election.
The
bill
should
receive
final
passage
by
october.
Sixth.
C
Finally,
attached
as
part
of
this
testimony
is
the
proposed
ballot
question
requesting
loan
authorization
from
the
electrode
excuse
me,
I,
respectfully,
request
that
the
committee
give
bill
number
160,
76
76
its
favorable
recommendation
and
further
that
rules
of
council
be
suspended
so
as
to
permit
first
reading
at
the
next
session
of
council.
That
concludes
my
written
testimony
and
we'd
be
happy
to
answer
any
questions
the
council
might
have.
D
You
chairwoman
and
black
well
in
that
good
morning
morning,
so
just
general
question,
I
swimming
sure,
I
understand
the
legal
debt
limit
of
the
city
is
5.4
billion,
and
currently
we
have
worried
about
1.7,
that's
right,
okay
and
we're
looking
to
increase
this
by
177
million
correct
and
as
a
relationship
to
other
cities
of
similar.
The
Philadelphia
is
our
amount
of
debt
similar
to
other
cities
higher
or
lower.
From
your
perspective,
so.
C
You
look
at
kind
of
comparison
to
other
cities
with
their
rating
agencies.
Look
at
in
general
is
total
fixed
costs,
so
we're
relatively
high
on
total
fixed
costs
because
of
our
unfunded
pension
liability.
Our
debt
by
itself
is
not
that
high,
but
it's
the
unfunded
liability
combined
with
our
debt
that
makes
our
5th
cause
high,
is.
D
It
running
kind
of
a
chart
showing
that,
like
we
had
last
week,
showing
20
cities,
relationship
like
the
population
of
500,000
to
4
million
and
showing,
where
Philadelphia
fits
into
that
model,
as
it
relates
to
debt,
we
can.
We
don't
have
that
we
can
put
that
together.
We
get
math
step
to
do
it.
Maybe
he's
good
at
those
charts,
sure
yeah
make
it
easier
for
us.
D
C
Have
a
variety
of
useful
lives
in
the
capital
budget?
You
know
we
have
everything
from
compactors
which
may
be
10
to
15
years
to
roof
replacements,
which
may
be
more
like
you
know,
20
years,
so
we
work
with
bond
counsel
to
make
sure
that
the
useful
lives
match
up
with
the
maturities
on
our
bond
issues.
So.
C
D
B
E
A
E
A
E
A
It
has
been
luden
and
properly
seconded
that
bill
number
160
767.
They
reporter
from
this
committee,
with
the
favorable
recommendation
and
further
moved
that
the
rules
of
council
be
suspended
to
permit
first
reading
of
this
bill
at
our
next
session
of
council,
all
those
in
favor
aye
those
opposed
the
ice
haven't
the
motion
carries
in
bill
number
160
767
will
be
reported
from
this
committee
with
the
favorable
recommendation
and
request
that
the
rules
be
suspended
in
order
to
permit
first
reading
at
our
next
session.
Well,
we've
done
on
this
committee
meeting
is
adjourned.