City of Philadelphia v. Schweiker

858 A.2d 75, 579 Pa. 591, 2004 Pa. LEXIS 2186
CourtSupreme Court of Pennsylvania
DecidedSeptember 22, 2004
Docket12 EAP 2003
StatusPublished
Cited by80 cases

This text of 858 A.2d 75 (City of Philadelphia v. Schweiker) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Philadelphia v. Schweiker, 858 A.2d 75, 579 Pa. 591, 2004 Pa. LEXIS 2186 (Pa. 2004).

Opinions

OPINION

Justice SAYLOR.

This is a direct appeal from an order of the Commonwealth Court sustaining the preliminary objections of the Governor of Pennsylvania and the Philadelphia Parking Authority to a complaint filed by the City of Philadelphia and its mayor, challenging the legality of certain amendments to Pennsylvania’s Parking Authority Law. The principal question presented is whether the General Assembly had the authority to enact provisions which, among other things, transferred control of the parking authority from the Mayor of Philadelphia to the-Commonwealth.

[596]*596I.

As early as 1947, the post-War pattern of suburban growth, combined with large numbers of individuals commuting via private automobile to workplaces inside cities, had generated the need for an increase in the availability of off-street parking in urban areas throughout the Commonwealth. The Legislature, aware of this problem, considered it a matter of statewide concern, finding that it impacted upon persons residing both inside and outside of the affected cities.1 Thus, the General Assembly enacted the Parking Authority Law,2 enabling cities, boroughs, and first class townships to create parking authorities in order to provide, administer, and collect revenue from, various types of parking facilities. See generally 53 P.S. § 344 (relating to method of incorporation) (recodified as amended at 53 Pa.C.S. § 5504). Although the statute constituted an enabling act authorizing the specified municipalities to create such authorities by ordinance or resolution, it provided that any parking authority thus created would not be considered a municipal instrumentality, but would instead constitute a “public body corporate and politic, exercising public powers of the Commonwealth as an agency thereof.” 53 P.S. § 345 (relating to purposes and powers) (recodified as [597]*597amended at 53 Pa.C.S. § 5505). Several benefits flowed from this designation, including that parking authorities could finance construction projects free from the debt limits applicable to local governments, see Pa. Const, art. IX, §§ 10,12; 53 Pa.C.S. §§ 8001-8285, and that, like other authorities, they could engage in proprietary or business-type operations from which local governments might otherwise be precluded. See generally SEPTA v. Union Switch & Signal, 161 Pa.Cmwlth. 400, 404, 637 A.2d 662, 664-65 (1994).

The facts underlying the present dispute are as follows.3 The Philadelphia Parking Authority (the “Parking Authority”) was created in 1950 by ordinance of the City of Philadelphia (the “City”), which was adopted pursuant to the Parking Authority Law. In 1987, the City extended the life of the Parking Authority to 2037, making its life span coterminous with that of several outstanding bond issues. Initially, the Parking Authority only operated certain off-street parking garages. These operations continue to the present, and are generally carried out through leases with the City. In particular, the City leases to the Parking Authority the land and/or buildings necessary for the latter to operate parking garages and surface lots within the City and at the Philadelphia International Airport (the “Airport”) on land owned by the City. In return, the Parking Authority pays to the City rent derived from the revenues received from these parking operations. This rent has amounted to approximately $21,500,000 per year for the past several years; the vast majority of this money has come from the parking facilities located at the [598]*598Airport’s terminals, which were built on land owned by the City and financed primarily through bond issues. Because the federal government provided the City with grants to operate the Airport, the City may be required to segregate the monies received from the airport parking facilities into a fund designated for Airport use. See 49 U.S.C. § 47107(b).

As amended in 1982, the Parking Authority Law authorized cities to delegate to their parking authorities responsibility for certain on-street parking functions, some of which are revenue-producing (e.g, issuing parking tickets and collecting money from parking meters). Such revenues from on-street functions were required by statute to be distributed back to the municipality as provided by ordinance or resolution. Thus, in 1983, the City passed an ordinance giving the Parking Authority responsibility for much of the City’s on-street parking services, which had previously been handled by multiple departments of the City.4 In keeping with the provisions of the ordinance, these responsibilities are fulfilled under an intergovernmental cooperation agreement. From such activities, the Parking Authority collected net revenues of approximately $13,000,000 per year during the past several years. These monies formed a part of the City’s operating budget and were accordingly reported in the City’s five-year plan as revenue to balance the City’s budget.

Throughout its existence, the Parking Authority has issued numerous tax-exempt long-term municipal bonds (some of which are still outstanding) to finance parking-related development projects within the City and at the Airport. Some of these bond issues subsume parking service contracts between the City and the Parking Authority which require the City to guarantee the debt servicing of the bonds in the event that the Parking Authority defaults. At the time these contracts were [599]*599executed, the Parking Authority Law effectively placed the City in a position to control some of the factors which affected its risk, including the composition of the Parking Authority’s governing board.

Pursuant to Section 8 of the Parking Authority Law, 43 P.S. § 348 (superseded), the Parking Authority was, until recently, controlled by a five-member governing board appointed by the Mayor of Philadelphia (the “Mayor”).- On June 19, 2001, however, then-Governor Ridge signed into law Act 22 of 2001 (“Act 22”).5 Act 22, inter alia, codified the Parking Authority Law at Sections 5501 through 5517 of Title 53 of the Pennsylvania Consolidated Statutes, 53 Pa.C.S. §§ 5501-5517, see generally City of Phila. v. Commonwealth, 575 Pa. 542, 582-84 & n. 21, 838 A.2d 566, 590-92 & n. 21 (2003) (explaining the process of statutory codification), and amended the Parking Authority Law by adding a special provision—applicable only to Philadelphia—supplanting the Mayor’s appointment powers over the Parking Authority’s governing board and repositing appointment authority in the Governor.6 This provision additionally required the reconstituted Parking Authority to transfer up to $45,000,000 of its retained earnings to the Philadelphia School District, with similar subsequent annual transfers based upon the availability of earnings. Specifically, the Parking Authority Law states:

During its fiscal year beginning in 2001, the authority shall transfer to the general fund of a school district of the first [600]

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Com. v. Duboise, R.
Superior Court of Pennsylvania, 2025
Ctr. Coalfield Justice v. Wash., Apl. of: RNC/RPP
Supreme Court of Pennsylvania, 2025
In re: Appeal of D. Auerbach ~ Appeal of: D. J. Auerbach
Commonwealth Court of Pennsylvania, 2025
City of Phila. v. A. Epstein; Appeal of: A. Epstein
Commonwealth Court of Pennsylvania, 2025
Crawford, S., Aplts. v. Commonwealth
Supreme Court of Pennsylvania, 2024
Gun Owners of America, Inc. v. City of Philadelphia
Commonwealth Court of Pennsylvania, 2024
Landlord Service Bureau, Inc. v. The City of Pittsburgh
Commonwealth Court of Pennsylvania, 2023
Pa. Rstrnt & Lodging v. Pgh. Apl of: SEIU
Supreme Court of Pennsylvania, 2019
Pa. Rstrnt & Lodging v. City of Pittsburgh, Aplt.
Supreme Court of Pennsylvania, 2019
Pa. Rest. & Lodging Ass'n v. City of Pittsburgh
211 A.3d 810 (Supreme Court of Pennsylvania, 2019)

Cite This Page — Counsel Stack

Bluebook (online)
858 A.2d 75, 579 Pa. 591, 2004 Pa. LEXIS 2186, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-philadelphia-v-schweiker-pa-2004.