PICA’s financial oversight role for the City of Philadelphia is defined by the PICA Act and the Intergovernmental Cooperation Agreement between PICA and the City of Philadelphia.
The PICA Act
PICA was created in 1991 to assist the City of Philadelphia in overcoming a severe financial crisis. The Authority was created through the joint efforts of concerned Philadelphians and State officials who envisioned a structure which would assist the City in putting its revenue collection and spending processes in order and at the same time reach a consensus on its future priorities, assets and limitations.
The PICA Agreement
The Intergovernmental Cooperation Agreement negotiated by and between PICA and the City and signed in January of 1992 formalized the relationship contemplated by the PICA legislation. The powers and duties of the respective participants envisioned in the legislation were put into place with the execution of the Agreement. After the amendment of the PICA Act in 2022, the Agreement was updated to reflect changes in operations since the initial signing in 1992.
PICA Bylaws
PICA’s Bylaws are derived from the PICA Act that created the Authority. It outlines the membership of the Board and how they are appointed and sets criteria for membership (ex. voting members must be Pennsylvania residents). It covers the terms of board members, what to do if a vacancy arises and what constitutes a qualified majority when one is required for voting on resolutions (it’s 4 out of the 5 voting members). The Bylaws also outline how often meetings must occur, where, and how notice is provided to the public. The Bylaws also specific the various officers of the Board (Chair, Vice Chair, Secretary, and Treasurer) and their duties. The Bylaws authorize the Board to hire an Executive Director and other staff and experts as needed. The Bylaws govern the financial affairs of the Authority, including requirements to file an annual report and that funds of the Authority should be invested in a manner consistent with sound business practices and in accordance with statutes and regulations. The Bylaws can be amended by a qualified majority of the board provided that there has been 15 days notice to each Board Member and that the changes don’t conflict with the PICA Act or other statutes and regulations.