Quarterly City Managers Report Projects $22.8 Million General Fund Balance for FY2021
November 25, 2020 — The City of Philadelphia projects a General Fund balance of $22.8 million, according to PICA’s Staff Report on the City of Philadelphia’s Quarterly City Managers Report (“QCMR”) for the first quarter (period ending September 30, 2020). This estimate is $28.4 million lower than the fund balance projection in the City’s FY2021-FY2025 Five Year Plan (“the Plan”), and can be attributed to FY2021 projections significantly increased spending due to the pandemic, election and economic downturn.
Harvey Rice, the Executive Director of PICA noted, “Due to the resurgence of COVID-19 and recent imposed restrictions on residents and businesses which could impact tax revenues, this fund balance could be depleted even further, if not completely exhausted, by the end of FY2021. As a result, we have notified the City of this concern.” The City responded that they are taking measures to address the low fund balance, such as seeking reimbursement of personnel costs from the Federal CARES Act.
Mr. Rice added, “PICA will monitor the implementation of the City’s measures to ensure that a positive fund balance is maintained.”
For the full report, click here.
For the accompanying press release, click here.
For past reports, click here.