City of Philadelphia Achieves Record 1.19 Billion Fund Balance Amid Unprecedented Fiscal Uncertainty

Philadelphia achieved a record $1. 187 billion fund balance for Fiscal Year 2025, reflecting the Parker Administration's fiscal discipline. Mayor L. Cherelle Parker highlighted that maintaining fiscal health is essential for the city's vision of safety and economic opportunity. This fund will help the city tackle looming challenges, including federal budget uncertainties and labor arbitration costs.

The city recorded higher-than-expected revenues from business and real estate taxes, bolstering the fund balance. However, the reliance on volatile tax revenues raises concerns for future stability. The city successfully reduced its obligations by $251 million, partly due to personnel cost underspends. Despite the optimistic fund balance, the absence of COVID relief funds in the upcoming fiscal year poses significant risks. The Annual Financial Report will undergo an audit by the Controller’s Office before the end of February.