FY2023 Fund Balance Projected to be $682.5 Million
The City of Philadelphia’s Quarterly City Managers Report (QCMR) for the first quarter (period ending September 30, 2023) of FY2024 projects a year-end fund balance of $685 million—$153 million higher than projected in the City’s FY2024-FY2028 Five Year Plan (5YP). The projected fund balance increase exists despite a significant revision to Realty Transfer Tax revenue projections, which have lowered expected revenue by $124 million. Bolstered by the higher fund balance, obligations are projected to increase by $78.2 million in line with the proposed FY24 mid-year transfer ordinance.
Bottom line: The City's finances are in good shape -- for now. Continuing trends of rising spending and reduced revenues that require using up the fund balance cannot be sustained over the long run. Future 5YPs need to address this imbalance.
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For past reports click HERE
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