Summary
PICA’s Fact Sheet on the City of Philadelphia’s FY23 Annual Financial Report (AFR) reveals a fund balance of $982 million, significantly exceeding previous projections by $300 million. The increase is attributed to $109.8 million in additional revenue from other governments and $93 million in lower-than-expected personal services expenditures. The report highlights a decade-long trend of AFR fund balances exceeding budget projections by an average of 62%. However, concerns remain about future stability due to the expiration of ARPA funds and potential budgetary pressures from new labor contracts. With the City projecting future fund balance declines, PICA emphasizes the need for long-term financial planning to ensure fiscal stability beyond short-term revenue gains.