City of Philadelphia - File #: 100491

• File #: 100491
• Version: 0
• Type: Bill
• Status: LAPSED
• File created: 6/17/2010
• In control: Committee on Finance
• Title: Amending Title 21 of The Philadelphia Code, entitled "Miscellaneous," by requiring the Mayor to submit to Council, with the proposed annual capital budget and capital program, a cost-benefit analysis that includes the return on investment and payback time for each capital project funded through the capital program and certain other information, following procedures to be adopted by the Finance Director, all under certain terms and conditions.
• Sponsors: Councilmember Green, Councilmember Jones, Councilmember Tasco, Councilmember DiCicco, Councilmember Sanchez, Councilmember Greenlee, Councilmember Reynolds Brown, Councilmember Kelly, Council President Verna, Councilmember O'Neill, Councilmember Miller, Councilmember Krajewski, Councilmember Blackwell, Councilmember Clarke
• Indexes: CAPITAL BUDGET, CAPITAL PROGRAM

Date	Ver.	Action By	Action	Result	Tally
6/17/2010	0	CITY COUNCIL	Referred
6/17/2010	0	CITY COUNCIL	Introduced	Pass

Title
Amending Title 21 of The Philadelphia Code, entitled "Miscellaneous," by requiring the Mayor to submit to Council, with the proposed annual capital budget and capital program, a cost-benefit analysis that includes the return on investment and payback time for each capital project funded through the capital program and certain other information, following procedures to be adopted by the Finance Director, all under certain terms and conditions.
Body
WHEREAS, The City of Philadelphia faces ongoing budgetary pressures due to multiple factors including the broad-based economic downturn, thereby increasing the need for City government to make the most efficient and effective use of its resources and deliver the most value possible to citizens; and

WHEREAS, The City makes a significant investment every year in projects funded through the capital program - the recently approved capital budget for Fiscal Year 2011 totaled over $2.4 billion, including over $100 million in new City bond funds, and the six-year capital program totals close to $8 billion; and

WHEREAS, The projects funded through the capital program include the construction of new facilities and the repair of existing facilities and infrastructure; and

WHEREAS, In determining whether to proceed with a particular capital project and in allocating scarce resources between capital projects, it is important to consider cost-benefit analysis - including both the return on investment and payback time - for individual capital projects; and

WHEREAS, The budget detail presented during the annual hearings on the capital program does not identify the return on investment and payback time for each capital project, nor the rationale for proceeding with projects that do not have identifiable returns on investment or payback; and

WHEREAS, This type of cost-benefit analysis would assist the City in making strategic capital investment decisions ...