Summary
Philadelphia’s reserves improved significantly between FY20 and FY24, reaching 18 percent of General Fund revenues, the highest level in City history, but still below the median among ten peer cities. Despite this progress, projections in the FY26 to FY30 Five-Year Plan show reserves steadily declining, which may limit the City’s ability to respond to future fiscal challenges. The report recommends that Philadelphia adopt a long-term strategy to build its reserves, including tools like fiscal stress testing and consistent policies modeled after its successful pension reform efforts.