City Controller Alan Butkovitz says the city's five-year plan is reasonable, but warned of several uncertain conditions that could impact Philadelphia's financial future.
"While our independent report indicates the city's presentation of the plan is reasonable, the plan includes particularly sensitive assumptionswhich the Pennsylvania Intergovernmental Cooperation Authority (PICA) should consider when assessing the Plan," Butkovitz said in a statement.
The city projects it'll collect $536 million in property taxes in fiscal year 2014 and $2.3 billion over five years, but Butkovitz said that amount could change depending on the number of appeals made under the city's new property-tax system, the Actual Value Initiative. He also noted it's difficult to determine how much the city will be able to collect from delinquent property owners.
Butkovitz also says the plan does not include more than $90 million in fringe benefit costs related to the firefighters' arbitration award which the administration is challenging, again. He added that additional money also needs to be set aside for contracts with the city's blue-and-white collar unions whose contract expired in 2009. Nutter is asking the courts for permission to impose terms.
The adminsitration did however set aside $31 million for the firefighters' arbitration award.
Additionally, Butkovitz noted that funding for the struggling school district has "fallen short of the amount requested" and that could also pose a problem.
The administration declined to comment. PICA will soon vote on the five-year plan.