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Motion of the Council of Allegheny County requiring that the Chief Executive comply with the terms of Article VII, Section 7.e. of the Home Rule Charter with respect to the 2007 fiscal year.
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WHEREAS, on January 2, 2008, Bill No. 3662-08, which makes demand for payment by the Allegheny County Airport Authority of $42.5 million owed to the County under the terms of the Airport Operation, Management and Transfer Agreement Between Allegheny County, Pennsylvania and the Allegheny County Airport Authority, was introduced; and
WHEREAS, on January 4, 2008, local media reported that approximately $22.4 million in revenue derived from casino gaming had been received by Allegheny County from the Commonwealth; and
WHEREAS, in said media reports, the administration has indicated that $19.9 million of this $22.4 million will be used as a partial payment of the Airport Authority's debt to the County, in conformance with Bill No. 3662-08, notwithstanding previous advice given by the administration to County Council during its deliberations for the 2008 budget that this debt was not recoverable; and
WHEREAS, upon information and belief no notice of this transfer was given to Council until early January, although it is understood from the media that the gaming revenue was actually transferred to the County on December 31, 2007; and
WHEREAS, upon information and belief founded upon statements attributed to the Chief Executive in the media, it is his intent to apply the $19.9 million partial payment of the Airport Authority's debt to reduce the County's operating deficit for 2007; and
WHEREAS, Article VII, Section 7.e. of the Home Rule Charter of Allegheny County expressly states that "[i]f at any time during the fiscal year it appears probable to the Chief Executive that the revenues or fund balances available will be insufficient to finance expenditures for which appropriations have been authorized, the Chief Executive shall report this to County Council in writing", together with any remedial actions taken and recommendations for additional steps and County Council shall take such appropriate action as it deems necessary to prevent or reduce any deficit; and
WHEREAS, in addition to reiterating the requirement of Article VII, Section 7.e. as they relate to the Chief Executive, §5-801.10 of the Administrative Code of Allegheny County further requires that "[t]he Director of the Department of Budget and Finance shall prepare and supply to the Manager, Chief Executive and County Council, the independently elected officers and Courts such information as will enable [them] to keep currently acquainted with the financial conditions and prospective receipts and expenditures during the current fiscal year in order to control expenditures in such a manner as to avoid deficits"; and
WHEREAS, the Chief Executive has not, at any time, furnished Council with the written report required by Article VII, Section 7.e. of the Home Rule Charter, nor has the Director of the Department of Budget and Finance provided any information on the prospective receipt of this gaming revenue, as required by §5-801.10 of the Administrative Code; and
WHEREAS, the deleterious effects of these failures were magnified in this instance, as they placed Council in the position of attempting to deliberate the County's 2008 budget without complete information regarding the County's budgetary position; and
WHEREAS, these failures, together with the statements attributed to the Chief Executive regarding his intended application of the moneys recovered for the partial payment of the Airport Authority's obligation to the County toward a heretofore unannounced operating deficit for fiscal year 2007, are contrary to the provisions of Article VII, Section 7.e of the Home Rule Charter and usurp the budgetary responsibilities of Council as more fully set forth in Article VII of the Home Rule Charter and the Administrative Code.
NOW THEREFORE, IT IS MOVED, that, in accordance with the clear directives of the Home Rule Charter and Administrative Code of Allegheny County, the Chief Executive and Budget Director both failed to meet their respective express duties to provide a written report to Council regarding the County's operating budget for 2007, to describe remedial actions taken and future actions to be taken, and to inform Council of prospective receipts and expenditures. In light of these failures, Council hereby requires that the Chief Executive, no later than January 22, 2008, fully comply with the provisions of Article VII, Section 7.e. of the Home Rule Charter and fully disclose, in a writing delivered to all of Council by that date, any County operating deficit for 2007, the sources and intended uses for any and all revenue received by the County from the Commonwealth since December 1, 2007 and any remedial action he has taken or intends to take with respect to any such deficit together with his recommendation for any other necessary steps.