►
Description
Testimony from the City Treasurer and Sinking Fund Commission presented before Philadelphia City Council on April 6, 2016.
Prepared remarks: http://phlcouncil.com/wp-content/uploads/2016/04/CTO-Testimony-for-FY17-Budget-Hearings-April-06-2016.pdf
http://phlcouncil.com/wp-content/uploads/2016/04/Sinking-Fund-Commission-Testimony-April-05-2016.pdf
A
A
B
C
C
Joining
me
today
is
Matthew
maza,
who
is
the
executive
director
of
the
sinking
fund,
commission
and
I'm
pleased
to
provide
the
testimony
for
the
city
treasurer's
office
for
fiscal
year.
Twenty
seventeen
operating
budget,
the
proposed
fiscal
year.
Twenty
seventeen
general
fund
budget
totals
1.18
million
increase
of
fifty-four
thousand
dollars
over
FY
2016
estimated
obligations.
This
increase
is
primarily
due
to
a
request
for
an
additional
accountant
and
increase
in
wages
from
dc47
raises
beginning
in
July
2016.
C
One
additional
thing
I
like
to
highlight
that
was
mentioned
earlier.
The
CTO
manages
the
city's
relationships
with
the
rating
agencies,
leveraging
the
city's
improving
an
economic
fiscal
outlook
and
working
to
optimize
investor
relations,
and
currently
the
city
is
rated
in
the
a
category
across
all
three
rating
agencies.
This
concludes
my
testimony.
I'll
be
happy
to
answer
any
questions.
B
My
total
budget
for
the
sinking
fund
commission
for
friskier
2017
is
630
point
five,
eight
million
dollars,
which
is
an
increase
of
27.99
million
or
about
4.6
four
percent
over
the
estimated
obligations
for
fiscal
year,
16
the
50
years
17
budget
for
each
of
the
funds
and
changed
in
the
last
year's
follows
it's.
A
third
1.6
million
dollar
increase
in
the
general
fund,
approximately
twelve
point:
eight
five
percent
increase
a
decrease
in
19.7
million
for
the
water
department.
B
D
Council
president
I
think
you
guys
sent
me
a
chart
of
some
debt
issues
that
you
all
right
requested.
It
doesn't
have
what
my
questions
are,
and
that
is
with
the
new
potential
borrowings.
What
will
our
total
debt
be
for
the
city
in
all
categories
I
have
in
this
chart
and
I
have
copies.
If
anybody
wants
it,
it
says
in
two
thousand.
I
think
we
were
at
what
seven
billion
7.1
billion
and
27
it
was
7.5
billion
and
a
2015
that's
8.1
billion,
and
my
question
is
with
the
new
borrowings
work
we
may
have
to
do.
D
What
will
our
debt
be
and
2017?
That's
one
question
you
may
not
have
the
answers
today
and
the
second
question
is
I
just
like
to
know
compile
not
broken
down
by
compiling
toll.
If
we
were
like
a
you,
if
you
had
a
mortgage
payment,
you'd
want
to
know
how
much
is
principal
and
how
much
is
interest
for
all
of
this
debt.
We
have.
What
are
we
paying
off
per
year
in
principle?
What
are
we
paying
an
interest
and
is
there
an
average
interest
rate
of
all
that
debt
that
you
could
show
us?
The
first.
C
Question
I'm
2017
is
estimate
an
additional
100
in
the
budget
and
sustain
an
additional
150
million
in
debt.
In
addition
to
what's
there
and
I
think
we
provided
that
to
you,
but
we
can
send
that
and
then
also
we
can
send
you
our
debt
service
schedule
of
how
dead
is
rolling
off
every
year,
because
I
think
another.
One
of
the
questions
you
had
is
how
long
the
debt-
and
it
rolls
out
to
4
30
years
to
2046
your
other
and
that's
across
all
credits,
including
water
gas
aviation
in
the
general
fund.
C
D
So
let
me
just
ask
this
question:
if
we're
eight
billion
and
2015,
what
will
that
will
that
number
be
eight?
Do
we
borrow
in
20s
I,
don't
know
the
number
for
2016
I'm
trying
to
find
out
what
is
our
debt
and
27
thing
go,
look
like
and
are
we
paying
off?
I
know
five
hundred
million
dollars
a
year
in
principle
in
total,
so.
B
The
debt
service
number
for
fiscal
year,
twenty
seventeen
is
795
million
dollars.
The
maturity
of
that
is
principal
with
I,
mean
think,
I
think
it's
6040
the
split
terms,
principal
and
interest.
As
you
know
what
all
debt
you
know,
we
would
hope
that
the
debt
is
going
to
continue
to
pay
off
over
time
as
we
pay
off
our
debt
in
fiscal
year
16
it
was
971
million,
but
we're
also
including
at
ran
for
fiscal
year
16
in
that
number.
So
if
you
subtract
ran,
would
be
in
the
high
seven.
So
is.
B
D
I
mean
this
could
be
the
positive
way,
not
a
negative
way.
That's
what
I'm
trying
to
get
to
correct
if
we're
are
far
debt
as
a
city
is
going
down
because
we're
paying
principal
right,
that's
positive,
that
I'm
sure
Moody's
would
enjoy
that
view
of
that
right.
So
I
just
want
to
just
show
everybody
where
we
are
financially.
D
D
E
C
E
F
Christopher
schwartz,
deputy
city,
treasurer
Thank
You
mr.
George.
To
answer
your
question.
The
TMS
approximately
in
the
first
year,
would
cost
about
135
140
thousand
dollars.
That
includes
the
implementation
cost
of
getting
that
system
up
and
running.
The
system
itself
could
provide
some
benefit
in
terms
of
say,
cost
savings,
I'll
say
in
terms
of
analyzing
bank
fees
and
ensuring
that
across
the
board,
we
are
paying
less
views
and
giving
us
a
billet
e
to
negotiate
fees
down
it's
more
of
a
control
and
value-added
type
system
than
it
is
a
cost
saving
system.
Though
okay.
E
But
but
there
is
potential
of
saving
some
small
amount,
most
very
small
amount,
yeah,
a
small
matter.
You
know,
I,
don't
know,
Ben
Franklin
said
Savior
Eddie's
and
the
dollars
will
take
care
of
themselves.
Something
like
that.
But
I
mean
the
point
of
it
is
your.
My
point
to
you
is
you're
saving
some
dollars
in
some
ways.
I
made
a
small
amount
ice
moment.
It's
still
something:
okay,
many
times,
sanger
mcallen
I.
A
B
G
D
You
counsel,
to
follow
up
above
question,
we
now
have
over
270
different
bank
accounts
between
wells,
fargo,
PNC,
United,
Bank,
Republican
TD,
and
we
pay
about
one
and
a
half
million
in
bank
fees.
Is
there
any
way
to
negotiate
those
down
or
eliminate
them
or
or
try
to
condense?
Some
of
those
accounts.
C
C
In
in
natural,
since
we
wouldn't
earn
that,
if,
for
example,
there
is
an
overage
it
doesn't,
we
don't
earn
that
interest.
So
what
we
do
is
we
continually
monitor
to
make
sure
that
we
have
enough
to
cover
any
expenses
and
any
other
dollars
are
actually
move
to
our
investment
managers
we
at
where
we
actually
earn
interest
that
could
actually
flow
into
our
general
fund.
Well,.
D
You
know
in
the
private
worlds,
I
will
say
that
we
have
conversations
with
banks
all
the
time
and
request
that
they
waive
fees
and
certain
accounts,
which
they
do
because
we
have
other
businesses
with
them.
So
I
guess
one
of
the
questions
is:
besides
these
bank
accounts.
Do
we
do
other
business
with
Wells
Fargo
P&C
United
Republican
TD
with
that
conversation
could
occur?
Yes,.
D
The
city
recently
required
all
non
represented:
an
exempt
employees
to
enroll
in
direct
deposit
or
receive
a
city
bank
debit
type
card
mm-hmm,
and
the
question
is:
why
are
we
still
printing
out
pay
stubs
for
those
employees
and
mailing
some,
and
can
we
require
all
employees
to
enroll
in
direct
deposit
or
debit
card,
to
replace
this
administrative
costs?
Well,.
G
G
An
answer
to
the
first
question
of:
why
don't
we
require
all
employees
to
do
direct
deposit
we
have
so
far.
We
have
required,
exempts
and
non
reps
to
do
that,
because
we
have
the
ability
to
make
impose
that
requirement.
We
don't
have
the
ability
to
impose
the
requirement
on
the
labor
represented
people
unless
we
negotiate
that
with
the
unions,
we
are
going
to
move.
G
The
pay
stubs
we
be,
we
also
are
going
to
are
working
towards
a
part
of
the
system
that
we're
building
the
one
Philly
system.
Will
there
will
be
a
piece
of
that
that
has
employee
self-service,
where
people
can
actually
go
online
and
look
up
their
pay
stubs
right
now
we
don't
have
the
ability
to
provide
that
information
to
people
electronically,
so
unfortunately
we
do
still
provide
the
paper
pay
stub,
but
we
are
working
to
move
away
from
that
all.