WHEREAS, According to the Mayor's soon to be released Fiscal Year 2005 Five-Year Financial Plan, the City faces a $670 million projected deficit at the end of Fiscal Year 2009 and according to the City Controller the City faces a $69.9 million projected deficit at the end of Fiscal Year 2004; and
WHEREAS, Philadelphia's revenue currently relies heavily on taxes, which make up approximately 62.8% of total revenue generated by the City, and further the City relies heavily on three specific taxes: the wage, property and business privilege tax, which make up approximately 86% of the City's total tax revenue and 54% of the City's total revenue; and
WHEREAS, For two consecutive years, expenditures have exceeded revenues and this inconsistency is expected to continue in the immediate future; and
WHEREAS, For three consecutive years, the City has spent more than City Counckil has budgeted; and
WHEREAS, The City Controller estimates that for every dollar raised in revenue, 16.2 cents will be dedicated to long-term obligations in Fiscal Year 2005, taking away much needed funds from the City's general fund in order to pay off accumulated debt; and
WHEREAS, The Tax Reform Commission has recommended several fiscally responsible tax reforms that generate business, create job opportunities and ease the tax burden on residents of the city; however, the Commission's mandate did not allow them to explore alternative funding sources, and, thus, their recommendations may reduce the amount of tax revenue that could be generated by the City; and
WHEREAS, Government leaders must act responsibly and expeditiously to reverse these trends and address the City's current fiscal crisis without relying on an antiquated tax structure; now therefore
RESOLVED, BY THE COUNCIL OF THE CITY OF PHILADELPHIA, That City Council's Committee of the Whole is hereby authorized to hold public hearings to examine and investigate alternative forms of revenue generation for the City of Philadelphia and to recommend policies, programs and practices to aid in the creation of additional revenue.
End