Title
Authorizing the Council Committee on Fiscal Stability and Intergovernmental Cooperation to hold hearings in order to fully examine and analyze the current and future financial condition of the City and to receive testimony from the Budget and Finance Directors, the City Controller and the Executive Director of the Pennsylvania Intergovernmental Cooperation Authority in an effort to provide guidance to City Council on prioritizing expenditures, balancing fiscal demands, and making strategic investments for the long-term health and viability of the City of Philadelphia.
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WHEREAS, The City's economic health and the success of the current Five-Year Financial Plan depend on a strong national economy; and
WHEREAS, The national economic downturn is already having a major impact on the City's finances and, according to the Fiscal Year 2001 Annual Report by PICA, "the City shows little preparedness for a general economic decline"; and
WHEREAS, If tax collections continue at the growth rate demonstrated in the first quarter of Fiscal Year 2002, the City will end the fiscal year below budgeted levels; and
WHEREAS, The increased security response to threats of terrorism and the anthrax scare resulting from the September 11th attacks has generated significant unanticipated expenditures. Police over-time costs alone through October 18th amounted to over $760,000; and
WHEREAS, Due to these serious economic conditions, the City Administration has instituted a hiring freeze and has asked City Departments to prepare "cut-back scenario" budgets; and
WHEREAS, Police and fire fighter contracts expire on June 30, 2002, but the current Five-Year Financial Plan reflects no increase in these wages and benefits; and
WHEREAS, The City is quickly approaching its allowable debt limit which will greatly reduce future capital budget spending and will jeopardize infrastructure repairs and replacement; and
WHEREAS, PGW continues to have severe financia...
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