Publications

The PICA Board met on December 19, 2016, to review financial updates, reappoint Executive Director Harvey Rice, and discuss the Sweetened Beverage Tax legal challenge. The Board also planned an upcoming meeting with the City Managing Director to address overtime spending.

PICA reappointed Harvey M. Rice as Executive Director, extending his term to continue overseeing the Authority’s financial oversight responsibilities. His appointment remains in effect until a successor is appointed or his term is otherwise concluded.

The Pennsylvania Intergovernmental Cooperation Authority (PICA) FY16 Annual Report provides an overview of the Authority's activities, financial oversight, and analysis of the City of Philadelphia’s fiscal condition over the past year. It includes key findings from PICA’s financial reviews, budget analyses, and policy recommendations aimed at ensuring the City's long-term financial stability as well as the Authority's financial statements and report from its auditors.

The FY17 Quarterly Overtime Report for Q1 examines Philadelphia’s overtime spending trends, highlighting that seven key departments exceeded their planned overtime budgets by $13.9 million in the first quarter alone.

Philadelphia’s Deferred Retirement Option Plan (DROP) continues to cost the city millions, with 613 employees receiving a combined $101.6 million in lump-sum payments in 2016. Critics argue that DROP, originally designed to be cost-neutral, has instead strained city finances, with total payments exceeding $1.4 billion since its creation in 1999​.

The first quarter FY17 QCMR projects General Fund revenues at $4.15 billion, an increase of $19.5 million from the Five-Year Plan, while obligations are projected at $4.22 billion, an increase of $37.0 million. The year-end fund balance is now projected at $95.8 million, $55.5 million higher than originally estimated.

The PICA Board met on November 15, 2016, to review City financial reports, discuss overtime spending, and hear a presentation from the Board of Pensions and Retirement. The Board raised concerns about the pension system’s low funded ratio and its impact on the City's financial stability.

Philadelphia overspent on overtime for the sixth consecutive year, with total overtime costs reaching $170 million in FY16, exceeding the budget by 26%. The Police and Fire Departments accounted for the majority of the spending, and PICA warned that rising overtime costs could negatively impact the city's long-term fund balances.

Press Release announcing PICA report on FY16 overtime spending. City of Philadelphia’s Overtime Costs Across Key Departments Approximately $170 Million for FY16, $45 Million Over Budget.

The PICA Board met on October 18, 2016, to review quarterly financial updates, discuss the upcoming annual report, and plan its third annual fall conference. The Board also debated the impact of the Sweetened Beverage Tax and potential legal risks.

Press Release announcing PICA report on the FY16Q4 QCMR. PICA: City of Philadelphia’s General Fund Revenues for FY16: $81.1 Million Higher Than Projected—Fund Balance $36.4 Million Higher Than Projected

PICA’s FY16 Annual Overtime Report highlights record-high overtime spending of $170 million, which exceeded the budgeted allocation by $45 million. The report assesses departmental overspending, workforce management challenges, and the need for improved overtime forecasting.

The PICA Board met on August 31, 2016, to approve the FY2017-2021 Five-Year Financial Plan and discuss pension funding challenges. The Board expressed concerns about labor obligations exceeding reserves and the long-term fiscal sustainability of the City’s pension system.

Press Release announcing that the PICA Board Approves City of Philadelphia’s FY17 to FY21 Five-Year Plan and Kevin Vaughan Elected PICA Chair.

Philadelphia’s five-year financial plan, approved by PICA, projects continued revenue growth to fund labor agreements and rising pension costs but does not account for a potential recession. Board members expressed concern that the city's revenue assumptions may be too optimistic given economic forecasts predicting a downturn​.

PICA engaged the Center for Retirement Research at Boston College to update its 2010 study on Philadelphia’s Deferred Retirement Option Plan (DROP). The Executive Director was authorized to negotiate and execute a contract for the study, with a budget not exceeding $55,000.