City Hall Roll Call: March 14th, 2024
Catch-Up Edition: Parker unveils FY2025 Budget
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Welcome to City Hall Roll Call, a summary of City Council’s weekly Stated Meeting. Reminder, the information provided below is not an official or complete record. City Council’s official legislative database can be accessed through Legistar.
For a full play-by-play of the Council session, including speeches and public comment, be sure to follow me on Twitter.
For those of you wanting to understand how the city budgets and spends taxpayer money, please check out yesterday’s post, “The Philly Budget 101: A special primer on the eve of budget day” Also thanks to those sharp-eyed readers who caught a redundant graphic error, the expenditure chart has been updated.
Editor’s Note: This week’s City hall Roll Calls are special catch-up editions, as I was attending the annual Las Fallas festival in Valencia and unable to post the last two Thursdays.
The March 21st Roll Call will land in your inbox tomorrow. There will be no additional coverage this week as City Council does not have a Stated Meeting on Thursday because of the upcoming Easter holiday.
March 14th Session Recap:
At the March 14th City Council Stated Meeting, following the completion of regular business, Mayor Cherelle Parker delivered her budget address to a packed room of elected officials, administration members and the public. In a speech that ran a little over and hour and fifteen minutes long, Parker unveiled a $6.3 billion budget. The budget, her first as Mayor, is relatively uncontroversial. It contains no new tax increases and makes modest investments in services, including public safety and sanitation, two areas on which she campaigned heavily. In outlining her vision, the Mayor focused on five major areas - public safety, clean and green, economic opportunity, housing, and education. Below are some highlights of the Mayor’s proposed Five-Year Plan, which can be found here in full.
No Tax Cuts, No Tax Increases?
The big question during every budget is whether the Mayor will propose a tax cut or a tax increase. For her first budget, Mayor Parker announced that she would leave the city’s tax rates static. This policy marks a break from her mayoral predecessors, who proposed modest cuts to the Wage and Business tax rates as a sign of the city’s commitment to becoming more business friendly. Parker shared her Mayoral philosophy on tax cuts during an interview with the Philadelphia Inquirer:
She said in an interview last week that she is open to “aggressive” reductions to both wage and business taxes in the future, and as a Council member she voted several times to make incremental cuts to those tax rates.
But she also made it clear that she’s not in a rush to tackle the complex task of reshaping Philadelphia’s unusual tax structure, which relies more heavily than other cities on wage taxes and has a relatively light property tax burden.
“Right now, what we need to do to ensure that business can thrive in this city is take care of the basics, and that is ensure the public safety, the cleanliness, greening our city, making it inviting and welcoming again,” Parker said.
While Parker stated that her budget contained no tax rate increases, it remains to be seen whether Philadelphia homeowners will see their property tax payments increase as a result of reassessments. Under the Actual Value Initiative, the City is required to assess the value of real property annually. The Office of Property Assessment (OPA) last performed a citywide assessment in 2022, resulting in a major jump in valuations for many homeowners and thus higher tax bills. The OPA was inundated with appeals to these assessments, so focused on clearing the backlog rather than reassess last year.
With new assessments due out this spring, homeowners are once again bracing for a possible jump in their real property tax bills. The Mayor’s Five Year Plan states:
An annual growth rate of 8.0 percent is anticipated for residential properties for FY25. In FY26 through FY29, the Budget Office is projecting an annual base growth rate of 3.0 percent. The City is anticipating new property assessments reflecting recent changes in the market. Owners should expect that their assessment is more accurate and reflects the changes that have occurred in the real estate market since the Tax Year 2023 revaluation. Should assessed values come in higher than anticipated, the Administration will work closely with City Council on tax relief and reforms that are scaled to the magnitude of the changes as the data becomes available.
In other words, the Mayor and City Council will wait to see where the assessments come in before deciding the type and level of relief to provide to tax payers. The Mayor and Council could take a wholesale approach and lower the tax rate to make the assessments revenue neutral to the City’s general fund, or they could qualify the relief granted based on eligibility in the city’s existing tax relief programs.
Public Safety
Public safety was the focus of Mayor Parker’s campaign and thus unsurprisingly the focus of much of her budget address. In announcing her public safety investments, Parker said she is “laser focused and unapologetic about improving public safety.” The proposed FY25 budget “includes over $33 million in new operating investments for public safety with over $150 million in new investments over the Five Year Plan.”1 The proposed budget does not appear to increase the number of uniformed officers on the force, but rather allocates additional funding to address the number of vacant officer roles that are currently budgeted for. The proposed budget “includes funding to increase the number and frequency of new recruiting classes; pair those more frequent classes with a new cadet program designed to be a pipeline into a policing career; and defray up-front costs previously borne by new recruits.”
The Mayor also said that quality of life and property crimes would have a renewed focus under her administration. “The Mayor’s proposed budget brings new resources and attention to persistent quality-of-life issues, including illegal use of all-terrain vehicles (ATVs), car meet-ups, retail theft, and nuisance businesses.”
The humanitarian crisis in Kensington also received significant attention during the Mayor’s budget address. The Mayor told Kensington residents and business owners, “Help is on the way.” As described in the Mayor’s Five Year Plan,
The Mayor’s proposed budget supports a multi-phase initiative comprising resident engagement, enforcement, and restoration – with the overarching goal of increasing public safety and community health for those who live and work in Kensington. Local law enforcement agencies and prosecutors will focus on “weeding" out criminals who engage in violent crimes and drug abuse, while the City simultaneously "seeds" the area by infusing individual- and community-supporting services spanning prevention, intervention, treatment, and neighborhood revitalization.
The Mayor’s proposed budget also includes capital investments in “new triage and wellness facilities” to provide “treatment, care and housing for the city’s most vulnerable citizens.”
Clean & Green
The Mayor also announced investments in programming to clean and green the city, and bring an end to the city’s “Filthadelphia” moniker. A number of existing programs would be expanded with the additional funding, including Parker’s hallmark “Taking Care of Business” program. The program, the brainchild of then Councilmember Parker, funds the cleaning of commercial corridors in the Northwest part of the city. The program will be extended citywide and will also include the cleaning of neighboring residential blocks. Parker also announced a pilot program to move to two-day a week trash pick-up for neighborhoods worst impacted by litter and illegal dumping, as well as council district assigned crews to respond to short dumping or similar quality of life issues.
Economic Opportunity
Parker’s budget provides additional resources to closing the racial wealth gap and to improving access to capital for minority owned businesses. A $10 million investment in the Community College of Philadelphia will establish the “City College for Municipal Employment,” a first-in-the-nation program that will recruit and train people for employment in the municipal sector, paying them while they attend classes and placing them directly into municipal employment roles upon completion of the program.
Housing
In her budget address, Parker set a goal for the creation of 30,000 units of housing over the next few years. With land use and zoning under the purview of City Council, they will be a key ally or roadblock to accomplishing this goal. The Mayor also announced investments in various programs designed to preserve and repair existing housing stock, including Restore, Repair and Renew, as well as the Basic Systems Repair program. In order to make these programs more effective, Parker announced financial support for a “one-front-door” approach, which will allow residents to submit one application and supporting documents for multiple programs at the same time, rather than individually.
Education
In order to provide additional resources to the School District of Philadelphia, the Mayor proposed a modest shift of the Real Property Tax. Currently 55% of the Real Property Tax funds the School District, with the remaining 45% going to the City’s General Fund. The Mayor is requesting Council shift the tax allocation to 56%, 44% respectively. While the Mayor’s proposal is revenue neutral to taxpayers, it will provide an additional $119 million to the School District over the course of the Five Year Plan.
Clouds on the Horizon
While the Mayor assured attendees that the state City’s fiscal health was “good, no really, it’s good,” she cited a number of financial challenges on the horizon. The City’s pension fund has remained a millstone around Philadelphia’s neck. Parker announced that the city’s pension fund just reached a 62% funding level, meaning that the City has the ability to pay approximately $0.62 for every $1.00 it is projected to owe in payments to current and former employees. The pension fund level is anticipated to hit 80% in FY29 and full-funding in FY33. These funding levels are predictions based on a number of factors, including market returns on pension fund investments, amount of pension fund payments made by the city and the life expectancy of beneficiaries. In other words, predicting the city’s pension health is as much an art as a science.
While the improving health of the fund is certainly something to celebrate, Parker noted that from now to FY2029, the City will pay $1 billion in debt service for the bond the city took out in the 1990s to shore up the city’s pension fund. This $1 billion includes an $80 million balloon payment due in FY2029. Should the pension fund actuarial predictions hold, this means that debt service would go down by $200 million by FY30.
Parker also noted challenges on the revenue side of the city’s ledger, with the end of one-time funds from the American Rescue Plan Act and lower tax growth than anticipated for Wage and Real Estate Transfer taxes. The lower tax growth is anticipated to cost the city approximately $300 million over the course of the Five Year Plan.
Bills and Resolutions Introduced on March 14th (By Subject Matter)
Due to the volume, ceremonial resolutions introduced by Councilmembers that honor or memorialize individuals or organizations will not be listed below, but can be found on Legistar.
🏗️ Construction / Zoning
Bill approving the 5th Amendment to the redevelopment proposal for the Tioga Urban Renewal Area. (Bass)
🗺️ Land Disposition / Acquisition
Resolution authorizing Public Property to transfer land located in the 3rd Councilmanic District to the Philadelphia Redevelopment Authority. (Gauthier)
Resolution athorizing Public Property to transfer land located in the 8th Councilmanic District to the Philadelphia Redevelopment Authority. (Bass)
💼 Business Regulation
Bill amending 9-600 of the Philadelphia Code by adding a new regulation related to the operating hours of business for a certain portion of the 7th Councilmanic District. (Lozada)
🚦Streets
Bill establishing parking regulations in the 1st Councilmanic District. (Squilla)
Bill establishing parking regulations in the 1st Councilmanic District. (Squilla)
Bill establishing parking regulations in the 1st Councilmanic District. (Squilla)
Bill establishing parking regulations in the 1st Councilmanic District. (Squilla)
💸 Finance / Budget
Bill authorizing transfers in FY2024 appropriations budget between departments. (Johnson)
Bill amending Bill No. 230145 (FY2024 Capital Budget). (Johnson)
Bill amending Bill No. 230144 (FY2024 Capital Program), to revise appropriation amounts to conform with the capital budget. (Johnson)
Resolution approving the revised Five Year Plan (2025-2029), incorporating FY2024 revisions for submission to PICA. (Johnson)
Bill adopting an Operating Budget for FY2025. (Johnson)
Bill amending Philadelphia Code Section 19-1800 - providing for an increase in School Tax on the Board of Education, reducing the tax rate on city side (to remain revenue neutral). (Johnson)
Bill adopting FY2025 Capital budget B- Adopting FY2025-2030 Capital program. (Johnson)
⚖️ Privileged Resolutions (Authorizing Hearings / Urging Action)
Resolution authorizing the Committee on Public Health and Human Services to conduct hearings concerning the rapidly evolving and worsening crisis of overdose deaths and their impact on neighborhoods, particularly in Black communities across Philadelphia.. (Brooks)
Resolution authorizing the Committee on Housing, Neighborhood Development and the Homeless to conduct hearings to examine ways to better connect low-income homeowners to the tax relief programs they are entitled to, including by door-to-door outreach and automatic enrollment.(Brooks)
Bills and Resolutions Introduced On March 14th (By Member)
Due to the volume, ceremonial resolutions introduced by Councilmembers that honor or memorialize individuals or organizations will not be listed below, but can be found on Legistar.
Councilmember Mark Squilla (D-1st)
B: Establishing parking regulations in the 1st Councilmanic District.
B: Establishing parking regulations in the 1st Councilmanic District.
B: Establishing parking regulations in the 1st Councilmanic District.
Council President Kenyatta Johnson (D-2nd)
B: Establishing parking regulations in the 2nd Councilmanic District.
B: Establishing parking regulations in the 2nd Councilmanic District.
R: Urging the Pennsylvania General Assembly to allocate full funding for Governor Shapiro’s proposed Office of Gun Violence Prevention.
B: Authorizing transfers in FY2024 appropriations budget between departments.
B: Amending Bill No. 230145 (FY2024 Capital Budget).
B: Amending Bill No. 230144 (FY2024 Capital Program), to revise appropriation amounts to conform with the capital budget.
R: Approving the revised Five Year Plan (2025-2029), incorporating FY2024 revisions for submission to PICA.
B: Adopting an Operating Budget for FY2025.
B: Amending Philadelphia Code Section 19-1800 - providing for an increase in School Tax on the Board of Education, reducing the tax rate on city side (to remain revenue neutral).
B: Adopting FY2025 Capital budget B- Adopting FY2025-2030 Capital program.
B: Amending 16-700, entitled Land Bank - to allow interested parties to require open bidding when the land bank seeks to exercise special authority to acquire property at a sheriff’s sale.
Councilmember Jamie Gauthier (D-3rd)
R: Authorizing Public Property to transfer land located in the 3rd Councilmanic District to the Philadelphia Redevelopment Authority.
Councilmember Quetcy Lozada (D-7th)
B: Amending 9-600 of the Philadelphia Code by adding a new regulation related to the operating hours of business for a certain portion of the 7th Councilmanic District.
Councilmember Cindy Bass (D-8th)
B: Approving the 5th Amendment to the redevelopment proposal for the Tioga Urban Renewal Area.
R: Authorizing Public Property to transfer land located in the 8th Councilmanic District to the Philadelphia Redevelopment Authority.
Councilmember Kendra Brooks (I-AL)
R: Authorizing the Committee on Public Health and Human Services to conduct hearings concerning the rapidly evolving and worsening crisis of overdose deaths and their impact on neighborhoods, particularly in Black communities across Philadelphia.
R: Authorizing the Committee on Housing, Neighborhood Development and the Homeless to conduct hearings to examine ways to better connect low-income homeowners to the tax relief programs they are entitled to, including by door-to-door outreach and automatic enrollment.
Bills and Resolutions Passed by City Council at the March 14th, 2024 Session
Resolutions:
📛 240029 (Johnson): Confirming the appointment of Adam N. Geer as the Chief Public Safety Director.
📛 240038 (Johnson): Confirming the appointment of Renee Garcia, Esq., as the City Solicitor.
📛 240075 (Johnson): Appointing Paul Levy to the Board of Directors of the Center City District.
📛 240078 (Squilla): Appointing Louis Tice to the Board of Directors for the Old City Special Services District.
📛 240079 (Squilla): Appointing Elizabeth Woods to the Board of Directors for the Old City Special Services District.
🗣️ 240161 (Johnson): Urging the Middle States Commission on Higher Education to reverse its decision to place Cheyney University on probationary status and calling on the Commission to work collaboratively with the University’s leadership to restore the historic HBCU’s academic status.
🗺️ 240169 (Lozada): Authorizing the Commissioner of Public Property to execute and deliver to the Philadelphia Redevelopment Authority deeds conveying fee simple title to 2147 N. 5th Street in the Seventh Councilmanic District of the City of Philadelphia and further authorizing the Philadelphia Redevelopment Authority to transfer to the Philadelphia Land Bank fee simple title to such properties pursuant to Section 16-405 of the Philadelphia Code.
⚖️ 240197 (Brooks): Authorizing the Committee on Public Health and Human Services to conduct hearings concerning the rapidly evolving and worsening crisis of overdose deaths and their impact on neighborhoods, particularly in Black communities across Philadelphia.
⚖️ 240198 (Brooks): Authorizing the Committee on Housing, Neighborhood Development and the Homeless to conduct hearings to examine ways to better connect low-income homeowners to the tax relief programs they are entitled to, including by door-to-door outreach and automatic enrollment.
Bills:
🚦 240014 (Lozada): Amending Title 9 of The Philadelphia Code, by amending Section 9-203 relating to Street Vendors, by prohibiting street vending in the 54th Ward; all under certain terms and conditions.
🚦 240016 (Lozada): Amending Chapter 11-708 of The Philadelphia Code, entitled “Traffic Calming Measures for Schools,” by authorizing the Department of Streets to additionally install traffic calming measures in the vicinity of recreation centers, playgrounds, parks, and libraries.
🏆 240019 (O’Rourke): Recognizing and congratulating Da’Vine Joy Randolph, a proud Philadelphia native, for her Academy Award for Best Actress in a Supporting Role and for her exceptional journey and contributions to the fine visual and performing arts.
FY2025-2029 Five Year Plan, page 19.