City of Philadelphia - File #: 010492

• File #: 010492
• Version: 0
• Type: Bill
• Status: LAPSED
• File created: 6/14/2001
• In control: Committee on Finance
• Final action: 6/6/2002
• Title: Amending Title 19 of The Philadelphia Code, entitled "Finance, Taxes And Collections," by creating a Rainy Day Fund to cushion the impact of unanticipated declines in City revenues; providing for the circumstances under which City monies must be deposited into the Rainy Day Fund and the circumstances under which expenditures may be made from the Rainy Day Fund; and providing for the custody and management of the Rainy Day Fund; all under certain terms and conditions.
• Sponsors: Councilmember Kenney, Councilmember DiCicco, Councilmember Goode, Councilmember Nutter
• Indexes: RAINY DAY FUND
• Code sections: 19-3400 - RAINY DAY FUND, 19-3401 - Definitions, 19-3402 - Creation of the Rainy Day Fund, 19-3403 - Deposits into the Rainy Day Fund; Cap, 19-3404 - Expenditures from the Rainy Day Fund, 19-3405 - Custody of the Rainy Day Fund; Investments, 19-3406 - Reporting, 19-3407 - Fail Safe Provisions

Date	Ver.	Action By	Action	Result	Tally
6/6/2002	0	CITY COUNCIL	FAILED	Fail	8:9
6/6/2002	0	CITY COUNCIL	READ
11/1/2001	0	CITY COUNCIL	ORDERED PLACED ON NEXT WEEK`S SECOND READING CALENDAR
10/25/2001	0	CITY COUNCIL	ORDERED PRINTED AND PLACED ON NEXT FIRST READING CALENDAR	Pass
10/24/2001	0	Committee on Finance	HEARING NOTICES SENT
10/24/2001	0	Committee on Finance	REPORTED FAVORABLY
10/24/2001	0	Committee on Finance	HEARING HELD
6/14/2001	0	CITY COUNCIL	Referred
6/14/2001	0	CITY COUNCIL	Introduced	Pass

Title
Amending Title 19 of The Philadelphia Code, entitled "Finance, Taxes And Collections," by creating a Rainy Day Fund to cushion the impact of unanticipated declines in City revenues; providing for the circumstances under which City monies must be deposited into the Rainy Day Fund and the circumstances under which expenditures may be made from the Rainy Day Fund; and providing for the custody and management of the Rainy Day Fund; all under certain terms and conditions.
Body
WHEREAS, Economic uncertainty arising from events over which the City has no control impairs the ability of the City to accurately predict revenues and expenditures; and

WHEREAS, Overestimates of revenues and underestimates of expenditures can create serious short-term deficits which could force the City into choosing between raising taxes and cutting services, further impairing the City's ability to attract and retain businesses and jobs, damaging the City's creditworthiness, and increasing the cost of borrowing for essential capital projects; and

WHEREAS, In response to similar concerns, forty-four states and numerous cities have created "rainy day" or "stabilization reserve" funds; and

WHEREAS, The Pennsylvania Intergovernmental Cooperation Authority, the state oversight board charged with overseeing the City's finances, recently published its "White Paper No. 9," entitled "Philadelphia's Fiscal Challenge: Finding A Way To Save," which recommended the City create a rainy day fund; and

WHEREAS, City Council's Legislative Oversight Committee held a hearing on January 31, 2001 to receive testimony as to the establishment of a rainy day fund, and all witnesses, including a representative of the Administration, testified in favor of the creation of such a fund; and

WHEREAS, City Council agrees with the finding of the Pennsylvania General Assembly when it created the Commonwealth's Tax Stabilization Reserve Fund that "it is a valid and proper public function to set aside a...