Summary
PICA’s Staff Report recommends PICA Board approval of the City of Philadelphia’s FY26–30 Five-Year Plan because it meets the requirements of the PICA Act, projecting positive year-end fund balances despite planned operating deficits from FY26 to FY29. The report highlights reasonable economic and revenue assumptions, the City’s continued investments in reserves, and the substantial $379 million in new capital borrowing authorized for FY26. However, it also notes structural imbalances, reliance on fund balance drawdowns, and the need for ongoing monitoring of labor costs, federal policy risks, and the sustainability of spending growth.