Summary
The Fund Balance and Reserve Fund Comparison report analyzes Philadelphia’s general fund balance and budget stabilization reserve, comparing them to best practices recommended by the Government Finance Officers Association and similar cities. It highlights the City’s historically low fund balances and lack of contributions to the budget stabilization reserve, identifying financial risks from unexpected shortfalls. The report suggests that Philadelphia increase its reserve levels to mitigate fiscal instability, improve long-term financial planning, and align with best practices observed in other municipalities. It also emphasizes the importance of maintaining reserves to safeguard against economic downturns and unforeseen expenditures.