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.
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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, in November 2000 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 and several representatives from bond rating firms, testified as to the benefits 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 Reser...
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