Summary
PICA’s Fact Sheet on the City of Philadelphia’s FY23 ACFR provides a detailed, audited overview of the City of Philadelphia’s financial condition, confirming a 26% increase in the General Fund balance from $779 million in FY22 to $982 million in FY23. The report also highlights stable locally generated revenues, which grew by 0.7% to $4.57 billion, and a manageable debt service level at 4% of total spending. The City received an unmodified audit opinion from the City Controller, indicating that its financial statements fairly represent its financial position without material errors. These findings suggest improved fiscal stability, with a growing financial cushion to absorb potential economic challenges.
While the ACFR provides a transparent, high-level summary of the City’s finances at the end of the fiscal year, it is not designed to track real-time budget performance or predict future trends. Unlike the Quarterly City Managers Report (QCMR), which offers ongoing financial updates, or the Five-Year Plan, which projects future revenue and expenditures, the ACFR focuses on past financial results. The fact sheet emphasizes the importance of audited financial statements for investor confidence, SEC disclosure compliance, and maintaining access to capital markets. Key takeaways from the report are a strengthened fund balance and stable revenue base, indicating that the City remains financially resilient, but continued monitoring of long-term liabilities, including pension obligations, will be necessary to sustain fiscal health.