Philadelphia spent another record amount of money on overtime pay in the fiscal year that ended in July, but for the first time in years, it stayed below what it budgeted.

Members of the state board that oversees Philadelphia’s fiscal health said Thursday that they’re concerned the city doesn’t have a large enough financial cushion.

Video interview.

Philadelphia Mayor Cherelle L. Parker is getting ready to unveil her first budget proposal, and she may have less cash to work with than anticipated.

While Philadelphia still has enormous fiscal challenges and its socioeconomic issues would require billions more to address, the last eight years have put the city budget in a better position.

The state watchdog that oversees Philadelphia’s finances got a change in leadership last week. The Pennsylvania Intergovernmental Cooperation Authority, or PICA, lost executive director Harvey Rice to retirement.

PICA has been Philly’s fiscal watchdog since it was created as part of a bailout package when the city was on the brink of bankruptcy in the early 1990s.

About 70% of the overtime spending went to the Police Department and the Fire Department. Police overtime this year exceeded $100 million, a 36% increase over the last fiscal year.

A Pennsylvania public spending watchdog organization is not pleased

The PICA board was set to expire next year, but Mayor Jim Kenney’s administration got behind a bipartisan effort to extend its life.

The Quarterly City Managers Report shows Philadelphia could potentially have a year-end fund balance of $389.9 million.

The current budget leaves only $86.5 million unspent, well below the $900 million that government financial experts recommend.