Philadelphia Mayor Jim Kenney recently released the first in a series of progress reports focused on shaping the city’s future.
The first progress report examined Philadelphia’s financial health, highlighting key areas of improvement in municipal areas, including pension funding and bond ratings. It also took note of potential challenges and concerns for the future.
“As we move towards a mayoral transition in the coming months, it is important that we identify our city’s strengths, note where we have made significant progress and also plan for the challenges ahead. There is indisputably still more work to be done, but we are confident about the long-term impact of the progress we’ve made and very hopeful about our city’s future,” Kenney said.
Overall, the review of Philadelphia’s fiscal progress showed two straight years of unprecedented budget surpluses in the face of the pandemic, social unrest, and economic recession. Also, the city made significant progress in restoring the health of the pension fund, which has risen from 44.8 to 57.6 percent funded since 2016. It is on track to be 80 percent funded in just five years.
Further, it cited continued reductions in the Wage and Business Taxes, which have reached the lowest level in decades. Finally, it shed light on the continued upgrades to Philadelphia’s municipal bond ratings, which reflect the city’s fiscal stability and reduce its borrowing costs.
“Everything that we do depends on the city’s financial health,” Kenney said. “With a strong financial foundation, we can pursue policy priorities and invest in long-term change while providing quality public services and infrastructure. Given the catastrophic impact of the pandemic, and the economic and social upheaval that followed, I am enormously proud of the progress we’ve made in strengthening the City’s finances. The Fund Balance, the pension fund, and our credit ratings are all stronger today than when I took office, setting the stage for continued growth and opportunity for all Philadelphians.”