In the first fiscal quarter that Mayor Kenney was fully in charge, revenues were strong yet use of overtime was the highest it’s been in years, according to an analysis by the city’s fiscal watchdog.
PICA released Wednesday an analysis of the city’s first quarter of fiscal year 2017, which started July 1 (FY17 was Kenney's first budget as mayor). The PICA report predicts the city will end the fiscal year on June 30 with $4.15 billion in revenues, an increase of nearly $20 million from what was initially budget. It also predicts that the city will spend $4.22 billion, an increase of $37 million from the original plan.
Some of the increased costs are related to increased pension and healthcare costs but also use of overtime.
“Overtime as a percentage of wages and salaries was 14.5 percent for the first quarter, the highest percentage compared to any fiscal year since FY10,” the report said.
Changes from the city’s FY17 budget, based on first quarter numbers, include:
- Employee Benefits are estimated to increase by $21.0 million increase, mostly due to an increase in pension costs ($13.3 million) and increased health care costs ($6.9 million).
- The Fire Department is expected to spend $12.1 million more this year due to an increase in overtime, as well as costs for 40 new firefighters and supplies.
- Prisons will likely have a $2.6 million increase associated with off-site housing requirements.
- The Streets Department is expected to spend an additional $1.8 million in overtime, which is related to a shortage of the compactors.
The good news is that because the fund balance for fiscal year 2016 came in higher than predicted, it will help with FY17 numbers. PICA is estimating that FY17 will end with a fund balance of $95.8 million, about $55.5 million higher than budgeted.
For the full report, click HERE.
Click here for Philly.com's politics page.