►
From YouTube: FY2018 Philadelphia City Council Budget Hearings 4-5-2017 City Treasurer and Sinking Fund
Description
The Committee of the Whole of the Council of the City of Philadelphia held a Public Hearing on Wednesday, April 5, 2017 to hear testimony on the following items:
No. 170195
An Ordinance to adopt a Capital Program for the six Fiscal Years 2018-2023 inclusive.
No. 170196
An Ordinance to adopt a Fiscal 2018 Capital Budget.
No. 170197
An Ordinance adopting the Operating Budget for Fiscal Year 2018.
No. 170213
Resolution providing for the approval by the Council of the City of Philadelphia of a Revised Five Year Financial Plan for the City of Philadelphia covering Fiscal Years 2018 through 2022, and incorporating proposed changes with respect to Fiscal Year 2017, which is to be submitted by the Mayor to the Pennsylvania Intergovernmental Cooperation Authority (the "Authority") pursuant to the Intergovernmental Cooperation Agreement, authorized by an ordinance of this Council approved by the Mayor on January 3, 1992 (Bill No. 1563-A), by and between the City and the Authority.
City Council Budget Center: phlcouncil.com/budget2018
City Treasurer Prepared Testimony: http://bit.ly/2nEromU
Sinking Fund Commission Prepared Testimony: http://bit.ly/2oPncCM
A
Real
quick,
I,
don't
know
you
should
be
the
one
that
I
should
ask
this
question
on
the
the
Preta
borrowing
of
the
money
for
the
preservation
program
and
I
see
mr.
Deveaux
still
think
the
question
my
question
was:
there
were
two
parts:
one
was
the
I
know:
you're
handling
the
borrowing
for
the
grant
program
we've
done
with
geodesy,
but
the
second
part
there
was.
It
was
the
loan
program
that
understand
that
there
were
some
concerns
raised
by
the
administration
and
I'm
not
sure
if
it
was
from
your
office
or
from
the
finance
department.
I
can.
B
A
B
Well
good
afternoon,
council,
president
Clark
and
members
of
council
umrah
shia
johnson
city
treasurer
joining
me
today
is
Christian
Dunbar,
deputy
city
treasurer
and
Matthew
Bowman
executive
director
of
the
sinking
fund
commission
I'm
pleased
to
provide
my
testimony
on
the
city
treasurer's
office
in
the
sinking
fund
commission
for
fiscal
year.
Twenty
eighteen
operating
budget,
the
proposed
fiscal
year,
twenty
eighteen
general
fund
budget
totals
1.2
million
dollars
and
increase
of
fourteen
thousand
seven
hundred
and
seventy-one
dollars
over
fiscal
year.
B
Twenty
seventeen
estimated
obligation
levels
the
increase
is
driven
by
raises
for
dc33
and
exempt
employees
and
a
restoration
of
the
class
202.
The
original
budget
levels
under
that
management,
the
city
the
CTO,
continues
to
maximize
the
value
received
for
new
finances,
while
reducing
the
city's
debt
service
payments,
with
continuous
monitoring
for
refunding
opportunity.
Cto
plans
to
issue
debt
through
six
to
seven
transactions,
actions
in
FY,
17
and
FY
18.
B
Those
transactions
include
the
proposed
Philadelphia
water
department,
new
money,
which
we
priced
today
as
well
as
next
week
will
plan
the
price,
the
philadelphia
municipal
authority
refunding
for
savings,
NFI
18,
the
probe
that
transactions
include
a
general
obligation,
new
money,
gasps
work,
revenue
bonds,
as
well
as
the
paid
affordable
housing
program
to
be
SRP
and
the
paid
rebuild
community
infrastructure
program.
That's
assuming
the
pbt
litigation
is
resolved,
as
well
as
a
tax
and
revenue
anticipation
news.
B
B
Cto
plans
to
implement
a
comprehensive
investor
outreach
program.
The
goal
is
to
better
inform
the
investor
community
about
the
city
and
its
goals
and
initiatives
based
on
our
experience.
We
believe
improve
relationships
and
there
better
understanding
can
result
in
lower
interest
costs
for
the
city's
bonds.
The
city's
expanded
investor
outreach
program
aims
to
increase
the
number
of
investors
in
an
effort
to
lower
the
city's
cost
of
debt
by
increasing
demand
for
the
city's
bonds.
B
The
CTO
manages
the
city's
credit
relation
credit
relationships
with
the
three
major
credit
agencies.
The
city
reflect
received
negative
outlook
changes
from
two
of
the
three
rating
agencies
in
explaining
these
negative
outlooks.
The
rating
agency
stressed
the
city's
continued
challenges
in
with
the
drell
ative
lelo
fund
balances,
and
currently
the
city
is
rated
a
in
all
three
category.
B
In
all
three
categories
by
the
three
agencies,
an
FYI
2016
CTL,
with
assistance
of
the
city's
payroll
department,
begin
to
reduce
the
number
of
weekly
payroll
checks
distributed
by
the
introduction
of
the
new
debit,
a
roll
program
in
a
campaign
to
enroll
more
city
employees
into
the
direct
deposit
program.
Since
the
start
of
the
programs,
city,
employees,
inclusive
of
DC
33
and
those
employees
and
exempt
and
non-representative
classes
have
been
successfully
converted
into
either
direct
deposit
or
payroll
card
programs.
B
B
Also
in
FY,
18ct
o
will
be
working
with
the
office
of
innovation
and
technology
on
the
pier
thurman
and
implementation
of
a
treasury
management
system
at
CMS
will
provide
the
CTO
with
the
ability
to
automate
and
add
more
control
around
the
cash
management
process
that
are
highly
manual
and
spreadsheet.
Dependent.
Another
key
benefit
of
a
TMS
is
a
centralized,
secure
and
standardized
system
for
administering
approximately
300
bank
and
investment
accounts
that
the
city
holds.
B
This
centralization
will
ensure
that
the
others
authorized
users
of
the
accounts
are
routinely
updated
and
monitored
and
would
allow
the
city
to
provide
a
more
in-depth
review
of
commercial
banking
fees
and
ensuring
the
city
is
being
provided.
Services
that
are
beneficial
pricing
and
also
a
lot
for
more
timely
auditor
fees
actually
charge
versus
negotiated
fees.
B
In
addition
of
sinking
fund
Commission
oversees
the
timely
repayment
of
the
bonds,
principal
and
interest
on
the
city,
related
debt
service
agreement
and
lease
obligation,
the
city
currently
has
7.5
billion
dollars
of
outstanding
debt
as
a
februari
2217,
the
total
fiscal
year.
Twenty
eighteen
debt
service
budget
is
702
point.
Seven
million
dollars
which
were
is
an
increase
of
sixty
three
point:
four
million
dollars
or
nine
point
three
percent
over
the
estimated
obligations
for
FY
2017
I
appreciate
this
opportunity
to
provide
testimony
regarding
the
proposed
fiscal
year.
B
A
You
very
much
for
your
testimony
a
couple
questions
pastry.
Your
testimony
show
a
MW
dbe
contract
participation,
goal
of
thirty
percent.
However,
your
participation
rate
in
16
ended
with
twenty-two
percent
and
17
shows.
Nineteen
percent
achieve
so
farts
run
us
down
the
trim.
So
is
there
a
plan
to
not
only
slow
the
decline
but
to
enhance
your
numbers?
The.
B
Nineteen
percent
is
as
of
for
FY
for
this
fiscal
years
as
of
December
31st,
and
there
were
some
week
for
our
office
outside
of
the
contracts.
A
lot
of
our
participation
comes
with
the
bond
deals
and
because
of
what
happened
with
the
post-election,
some
of
our
bond
deals
were
pushed
back
into
this
calendar
year.
So,
like
I
said
we
just
priced
one
today
we
have
another
one
next
week,
so
that
will
the
participation
in
those
bond
transactions
will
now
be
counted
as
we
move
forward.
So
that
will
help
that
number
to
go
up.
A
A
B
A
A
B
Credit
downgrade
because
we
are
on
the
egg
category
we
will.
If
we
are
downgraded
in
nitra
so
below
we
will
be.
It
will
cost
us
more
and
right
now
a
rough
estimate
for
every
not
to
be
approximately
about
1.5
million
dollars
in
additional
debt
service
per
year
and
actual
dollars
that
we
would
have
to
pay
based
upon
a
hundred-million-dollar
borrowing
if
we
are
downgraded
so.
A
A
D
B
B
D
Couple
of
years
back
Timeflies
before
you
were
there,
we
did
a
resolution.
Looking
at
how
we
deposit
in
our
overnight
sweeps
you
mentioned,
we
had
300
account.
Have
we
automated
that
to
do
more
direct
deposit
and
of
those
accounts
so
that
we
maximize
our
short-term
interests?
So
could
you
elaborate
more
housing?
Junga
I
have.
B
Yeah,
those
aren't
our
systems,
those
are
kind
of
things
that
we
put
in
place
that
allows
on
the
bank
systems.
Those
aren't
our
internal
systems
when
the
TMS
would
be
our
internal
system,
so
we
can
work
in
the
bank
portal
automatically
instead
of
right
now.
What
we
do
is
take
information
from
the
bank
portals
in
their
system
and
then
we
have
to
dump
it
into
Excel
and
do
a
lot
of
manual
calculation
with
regards
to
things
so.
D
Generally,
when
a
revenue
department
gets
money,
are
we
looking
to
them
to
maximize
the
tramps
for
money?
So,
for
example,
the
state
reimburses
us
for
DHS,
that's
a
considerable
amount
of
money
and
a
considerable
amount
of
interest
that
we
can
earn.
How
will
you
maximize
those
kinds
of
opportunities,
so
they,
our
balance
thing
is
right
and
we
get
a
real
return
for
our
deposit.
D
E
Typically
I'm,
sorry,
oh
thank
you,
Christian
downrod,
deputy
city
treasurer,
so
typically
our
con
cash
account
is
where
we
receive
most
of
our
deposits.
You
know
sort
of
our
catch-all
account
and
within
that
account
we
have
any
access
we
have
in
operating.
Funds
are
automatically
invested,
you
know
so
so
we
are
actively
managing
our
cash
now,
because
we
have
such
a
short
duration,
portfolio
and
and
liquidity
is
a
big
issue
with
the
city.
E
D
That
fluctuate
so
quickly
that
we
don't
get
so
so
is
there
a
standard
that
you
guys
look
for
to
make
sure
we're,
because
I've
been
around
long
enough
to
when
I
was
stepping
in
finance
director
have
to
figure
out
on
money
who
were
going
to
pay
on
Tuesday
when
it
was
tight?
Have
we
gotten
past
those
days?
How
are
we
managing
our
operating
dollars?
What.
B
We
do
is
we
work
closely
with
the
budget
office
and
we
do.
We
have
monthly
cash
flows
that
we
that
budget
works.
Often
we
work
closely
with
them,
and
then
we
take
those
internally
and
we
break
those
down
to
weekly
basis
about
payrolls
and
all
the
various
things,
and
we
try
to
invest
based
upon
that
to
make
sure
that
we
have
enough
dollars
in
house
to
pay
all
the
necessary
payments
that
we
have
to
make
and
made
all
of
our
obligations
as
well
as
as
well
as,
what's
being
invested.
B
D
To
an
extent,
nylon
belabor,
it
I'd
love
to
hear
how
you
do
it
at
some
point
not
today,
but
is
there
a
way
to
work
with
the
Budget
Office
to
say
if
we're
paying
our
fuel
costs
one?
The
first
of
the
mountain,
we
know
that
peaks
and
valleys
of
our
cash
flow
occur
and
at
the
same
time,
that
that's
a
good
thing
or
can
we
adjust
certain
favors
so
that
we
don't
take
big
peaks
and
valleys
if
we
consider
that
we.
B
Cash
flows
are
based
on
revenues
and
expenditures
based
upon
this
butcher
is
specifically
talking
about
whether
you
know
there's
certain
things
that
are
paid.
We
know
that
there's
certain
team
is
that
we
have
to
make
and
we
from
revenue.
You
know
what
certain
times
that
money
the
month
various
monies
come
in
I
just.
D
Want
to
thank
you,
I
just
wanted
to
get
a
sense
of
that
I
remember.
There
was
an
occasion
where
we
received
a
close
to
a
million-dollar
check
and
in
fed
on
a
death
before
you
were
there
for
close
to
a
year
and
I.
Just
that
nightmare.
In
my
mind,
of
lost
earnings
is
the
thing
that
I
will
hopefully
try
to
avoid
and
maximize
our
opportunity
to
get
it
in
the
bank,
get
short-term
overnight
swimsuit
and
do
a
look
at
all
right,
Thank
You.
Mr.
president,.
F
You
Thank
You
council,
president
from
Williams,
Johnson
and
rest
of
your
staff.
I
want
to
publicly
thank
you
for
the
citizens.
You
provided
my
office
and
also
last
year
when
we
did
a
briefing
for
members
of
council.
Some
of
the
issues
that
come
up
in
front
of
this
valley,
also
based
on
your
years
of
experience
from
working
at
PF,
m
and
Siebert,
which
is
napping,
see
versus
narrow,
sink
and
Luke
capital
provided
unique
perspective,
hasn't
worked
for.
Minarii
owns
investment,
banking
firms,
awesome
working
for
a
very
prominent
FA
like
pfm
in
your
past
experiences
city.
F
Treasurer
I
want
to
thank
you
for
your
assistance.
You
provide
to
my
office
in
addition,
and
that
we've
spoken
about
an
initiative
I'm
working
on
to
work
with
the
National
Black
Caucus
of
local
officials
and
the
National
Association
security
professionals,
to
put
together
a
conference
for
elected
officials
in
the
region
to
learn
more
and
dive
in
deeper
regarding
some
of
these
issues.
So
thank
you
for
your
support
in
that
regard.
Looking
your
budget
testa-
had
a
question.
I
know
this
year.
All
of
the
major
credits
of
the
city
aren't
doing
debt
transactions.
F
F
F
I
know
you
internally
have
this
information
one
knowing
you
can
provide
that
information
regarding
for
each
of
those
credits
for
those
you
are
identified,
teams
and
what
the
team
is
of,
who
the
team
is
on
that
transaction
and
also,
when
usually
go
in
the
market
on
these
offerings
and
then
for
proposed
transactions
when
you
initially
put
together
those
teams
and
also
my
meters
they're,
going
to
market
on
those
projects
as
well.
If
you
could
provide
information
very.
G
F
Because
I
think
would
also
provide
information,
especially
for
the
team.
You
are
identified
and
input
those
teams.
You
know
you
under
use
a
rotational
process
for
both
counsel
and
also
investment
professionals,
their
institutions.
That
also
could
be
good,
because
I
will
give
a
better
perspective.
I
think
for
this
body.
The
diversity
of
firms
that
interest
rate
using
an
amateur
now
fully
into
your
position,
entity
treasurer
and
unless
one
last
comment.
I
know:
I
spoke
to
Christian
done
by
your
office
earlier
and
their
previous.
F
A
C
You
I
certainly
want
to
thank
the
treasure
her
deputies,
we
work
with
Christian
done
barn
he's
a
member
of
our
mission
as
well
and
go
up
and
I
want
to
thank
her
for
briefings
that
she's
provided
to
me,
and
my
questions
are
included
like
if
we
was
you
kind
of
asked
if
we
are
reading
goes
down,
but
you
talk
to
Madam
charger
like
you,
try
to
do
different
things
to
bring
it
up.
Well,.
B
What
we've
been
doing
in
conjunction
with
the
director
of
finance,
rather
go
as
well
as
well
n
atoms.
Every
time
something
comes
out,
whether
it's
a
quarterly
managers
report,
the
five-year
plan
operating
bugging
brief.
Whatever
comes
out,
we
have
ongoing,
even
away
from
transactions,
have
ongoing
conversations
with
the
rating
agencies
to
help
them
understand
some
of
the
initiatives
that
we're
putting
in
place
and
some
and
what
our
in
result
in
our
goals
are.
So
when
things
like
that
come
out,
have
just
the
own
goal:
dialogue
to
help
them
to
understand
better.
B
G
You,
council,
president
and
good
afternoon,
oh
I
have
a
couple
questions
for,
but
first
I
just
want
to
acknowledge
your
department
and
Gianna
and
robbery
or
I.
Think
that
I
didn't
realize
this-
that
the
government
finance
Officers
Association
gave
us
a
distinguished
budget
presentation
award
last
year.
So
congratulations
to
you
guys
with
it.
I
know
this
budget
was
so
distinguished
by
sort
of
the
partners.
Now
so
just
ask
a
few
questions
about.
G
B
G
If
I
recall
council
president,
we
had
a
financial
meeting,
I,
don't
remember
when
it
was
maybe
September
in
October.
We're
actually
matts
did
that
a
great
presentation
comparing
our
ratings
to
other
cities
across
the
country
and
if
I
recall,
we
were
at
the
second
or
third
from
the
bottom
in
many
of
those
categories
it
was
because
of
unbalanced
interventions.
So
I
know
all
the
cities
have
had
issues,
I,
think
our
horses
or
maybe
more
severe
and
that
analysis
comparing
us
to
other
city.
G
So
whatever
we
can
do
to
improve
that
bond
rating,
we
have
to
do
it's
like
crucial
in
that
light,
I
wanted
to
make
sure
I
understand.
On
page
75
of
the
five-year
plan,
look
there's
a
chart
that
shows
six
different
agencies.
I
guess,
and
it
shows
the
debt
hike
or
actually
I
guess
it's
the
interest
in
principle
of
each
agency
I'm
going
to
make
sure
I
understand
this
drug
directly
score
at
the
top.
It
says
2018
geo
bonds,
who
is
that
the
payments
or
is
that
the
actual
balance,
a
good
as
the
payments
say.
G
G
G
B
G
Form
sure
I'm
asking
me
of
some
columns
that
say
this
is
how
much
you
know
we
go.
100
million
dollars
this
year,
paying
three
million
dollars
now
so
next
year
will
97
so
I'd
like
to
see
the
outstanding
principal
the
interest
rate
in
the
term
of
that
loan.
Okay,
the
other
question
I
had
is
in
the
in
the
five
year
plan,
there's
a
page
that
talks
about
a
summary
of
general
fund,
summary
tables.
Can
you
explain
to
me
in
fiscal
year
16
we'll.
B
F
G
B
That
is,
is
a
combination
of
new
debt.
Now,
in
this
class,
700
is
inclusive
of
airport
as
well
as
water.
That's
all
that
debt,
as
well
as
the
geo
that
excludes
excluding
any
some
lease
obligations
and
service
agreements
so
again
included
in
that
is
the
future
debt.
And
then
we
have
some
debt
that
was
laid
on
that
does
not
start
amortize
until
the
2020
fiscal
year.
So
the
there's
several
things
that
make
that
number
jumped
like
that,
but
we
can
break
that
out
for
you
as
I
like.
B
G
The
other
question
I
have
in
the
city's
debt
service
policy
that
we
have
is
a
city
our
target
maximum
is
fifteen
percent
for
tax,
supported
debt
service,
Plus
long-term
obligations
as
a
percentage
of
general
fund
expenditures.
However,
in
fiscal
year
15
it
was
twenty-two
percent
seven
points
higher.
You
know
what
our
ratio
is
in
fiscal
17
and
what
the
target
is
for
18
now,
I.
B
C
Thank
you
good
afternoon.
I've
simply
wanted
to
go
on
the
record
to
say
that
I
do
appreciate
and
join
my
members
who
watch
carefully
to
see
what
you're
doing
appreciate
the
fine
work
you've
done
already
and
to
my
issue
of
pay
equity
and
the
like
my
appreciation
that
you
recognize
that
I
have
tried
to
be
fair
across
your
department
and
in
that
way
it
doesn't
go
unrecognized.
Thank
you
very
much.
Thank
you.
G
B
Again,
you're
looking
at
the
class
700
but
I
look
at
each
each
credit
separately,
so
it
shows
a
little
different
picture
and
we'll
break
that
out
for
you
how
it
looks
each
individual
credit
versus
holistically
and
in
explain
so
and
each
under
each
credit
within
all
of
our
debt.
Fifty
percent
of
our
debt
rolls
off
within
the
next
ten
years.
So
at
this
point,
no
and
not
too,
concerned
about
how
its
layered
in
but
oh
fifty.
G
B
G
Getting
that
information
to
anyone
making
a
decision
about
borrowing
is
very
important
because
if
we're
gonna
we're
going
to
put
the
city
into
that
further
okay,
you
should
know
what
our
obligations
are.
Four
principal
payments
in
later
years
out,
so
we
can
make
an
educated
decision
as
to
do.
We
want
to
even
borrow
more
knowing
this
principles
coming
to
hit
us
Mexico.
Ok,.