Annual Financial Report FY2022

City of Philadelphia

Since 1682

Annual Financial

Report

Fiscal Year Ended

June 30, 202

2

City of Philadelphia

Annual Report

For the Fiscal Year Ended June 30, 2022

Table of Contents

Letter of T

ransmittal .................................................................................................................. 1

Governmental Funds Financial Statements

Exhibit 1 Balance Sheet

...................................................................................................

9

Exhibit 2 Statement of Revenues, Expenditures and Changes in Fund Balances .......... 11

Proprietary Funds Financial Statements

Exhibit 3 Statement of Net Position .................................................................................. 13

Exhibit 4 Statement of Revenues, Expenditures and Changes in Net Position ............... 14

Fiduciary Funds Financial Statements

Exhibit 5 Statement of Net Position – Pension Trust Funds ............................................ 15

Exhibit 6 Statement of Changes in Net Position – Pension Funds .................................. 16

Exhibit 7 Statement of Net Position – Agency Funds ....................................................... 17

Exhibit 8 Statement of Changes in Net Position – Agency Funds ................................... 18

Debt Statements

Exhibit 9

Statement of Long Term Debt ........................................................................... 19

Exhibit 10 Analysis of Changes in Bonded Debt Outstanding ........................................... 20

Exhibit 11 Analysis of Changes in Other Long Term Debt ................................................. 21

Exhibit 12 Statement of Debt Incurring Capacity ............................................................... 22

Component Units Financial Statements

Exhibit 13 Statement of Net Position .................................................................................. 23

Exhibit 14 Statement of Activities ....................................................................................... 24

Budgetary Schedules

Exhibit 15 General Fund ..................................................................................................... 25

Exhibit 16 Budgetary Actual and Estimated Revenues and

Obligations – General Operating Fund ........................................................... 26

Exhibit 17 Water Operating Fund ....................................................................................... 29

Exhibit 18 Budgetary Actual and Estimated Revenues and

Obligations – Water Operating Fund ....................................................... 30

Exhibit 19 Water Residual Fund ......................................................................................... 31

Exhibit 20 County Liquid Fuels Tax Fund .......................................................................... 32

Exhibit 21 Special Gasoline Tax Fund ............................................................................... 33

Exhibit 22 HealthChoices Behavioral Health Fund ............................................................ 34

Exhibit 23 Hotel Room Rental Tax Fund ............................................................................ 35

Exhibit 24 Grants Revenue Fund ....................................................................................... 36

Exhibit 25 Aviation Operating Fund .................................................................................... 37

Exhibit 26 Budgetary Actual and Estimated Revenues and

Obligations – Aviation Operating Fund .......................................................... 38

Exhibit 27 Community Development Fund ......................................................................... 39

Exhibit 28 Car Rental Tax Fund ......................................................................................... 40

Exhibit 29 Housing Trust Fund ........................................................................................... 41

Exhibit 30 General Capital Improvement Funds ................................................................ 42

Exhibit 31 Acute Care Hospital Assessment Fund ............................................................. 43

Exhibit 32 Budget Stabilization Reserve Fund………………………………………………...44

Notes to the Financial Statements ........................................................................................... 45

OFFICE OF THE DIRECTOR OF FINANCE ROB DUBOW

1401 John F. Kennedy Blvd. Director of Finance

Suite 1340, Municipal Services Building

Philadelphia, Pennsylvania 19102-1693

October 28, 2022

To the Honorable Mayor and Members of City Council of the City of Philadelphia:

The Annual Financial Report of the Director of Finance for the fiscal year ended June 30, 2022 is

hereby submitted.

This report was issued in compliance with the Philadelphia Home Rule Charter (Charter), which

requires that the Director of Finance “Issue within one hundred and twenty days after the close of each

fiscal year a statement as of the end of that year showing the balances in all funds of the City, the

amounts of the City’s known liabilities, and such other information as is necessary to furnish a true

picture of the City’s financial condition”. This report is intended to meet these requirements and is

preliminary, not audited, and subject to change. The Annual Comprehensive Financial Report (ACFR)

will be published at a later date.

The report contains financial statements for all City governmental funds and blended component units

presented on the modified accrual basis. The proprietary and fiduciary funds are presented on the full

accrual basis. It also contains budgetary comparison schedules for those funds that are subject to an

annual budget. The financial statements of the City’s discretely presented component units that were

available as of the date of this report are also presented. Discretely presently component units that are

not presented in the AFR will be included in the ACFR.

GENERAL GOVERNMENT FUNCTIONS

GENERAL FUND

At June 30, 2022, an unreserved fund balance surplus of $779.1 million was reported on the budgetary

basis and a total fund balance of $1,278.7 million was reported on the modified accrual basis. The

difference of $499.6 million is the result of three (3) reconciling items, as noted below.

Budgetary Basis Fund Balance $779.1

1. Less: BIRT six (6) months pre-pays (204.5)

2. Add: Encumbrances 527.7

3. Add: Reserves 176.4

4. Add: Budget Stabilization Fund -

Modified Accrual Basis Fund Balance $1,278.7

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Please note:

 The “BIRT six (6) months pre-pays” represent Business Income & Receipts Tax payments

received in advance of being earned on the modified accrual basis.

 Encumbrances are documents (i.e. purchase orders, contracts, etc.) that reserve appropriation in

anticipation of future expenditures, and thus reduce the Budgetary Basis Fund Balance, but are

not recognized as expenditures on the modified accrual basis.

 Reserves are amounts held by fiscal agents; and are not included in the Budgetary Basis Fund

Balance but are recognized in modified accrual. Two of the City’s component units (PAID and

PRA) have issued conduit debt on behalf of the City. The City, through various agreements, is

responsible for the debt, and therefore the proceeds of the issuance, are reported as assets

(Amounts held by fiscal agents) of the City.

 Article 6-110 of the Home Rule Charter mandated the creation of Budget Stabilization Reserve.

This reserve is part of the fund balance of the General Fund in the modified accrual statements

but is separately budget and is presented on a distinct schedule (Exhibit 32). The Budget

Stabilization Reserve fund has a zero balance as of June 30, 2022.

The following schedules present a summary of General Fund revenues and expenditures on the

modified accrual basis and the amount and percentages of increases and decreases in relation to the

prior year. Please note that a narrative overview and analysis of these results will be included in the

Management’s Discussion and Analysis section of the City’s ACFR.

SUMMARY GENERAL FUND REVENUES – MODIFIED ACCRUAL BASIS

Amounts in Millions in USD

Percent Percent

of Increase Increase

Revenues

FY2022 Total FY2021 (Decrease) (Decrease)

Tax Revenue 4,102.2 84.0% 3,422.9 679.3 19.8%

Locally Generated Non-Tax Revenue 407.3 8.3% 345.5 61.8 17.9%

Revenue from Other Governments 359.7 7.4% 257.7 102.0 39.6%

Other Revenue 15.5 0.3% 61.8 (46.3) -74.9%

Total

4,884.7 100.0% 4,087.9 796.8 19.5%

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SUMMARY GENERAL FUND EXPENDITURES – MODIFIED ACCRUAL BASIS

Amounts in Millions of USD

Percent Percent

of Increase Increase

Expenditures

FY2022 Total FY2021 (Decrease) (Decrease) Note

Economic Development 34.4 0.7% 34.8 (0.4) -1.1%

Streets & Highways 92.0 1.9% 91.4 0.6 0.7%

Mass Transit 91.2 1.9% 84.6 6.6 7.8%

Police 1,309.3 26.8% 1,215.1 94.2 7.8% (1)

Prisons 321.8 6.6% 304.8 17.0 5.6% (2)

Courts 345.2 7.1% 313.2 32.0 10.2% (3)

EMS 97.1 2.0% 75.3 21.8 29.0% (4)

Health Services 218.9 4.5% 203.1 15.8 7.8%

Housing 8.7 0.2% 20.2 (11.5) -56.9% (5)

Recreation and Parks 118.8 2.4% 108.0 10.8 10.0% (6)

Libraries and Museums 79.5 1.6% 83.7 (4.2) -5.0%

Social Services 244.6 5.0% 174.3 70.3 40.3% (7)

Education 297.8 6.1% 294.2 3.6 1.2%

Inspections and Demolitions 61.1 1.3% 54.7 6.4 11.7%

Sanitation 188.8 3.9% 156.0 32.8 21.0% (8)

Fire 501.9 10.3% 459.5 42.4 9.2% (9)

General Management 852.1 17.5% 745.6 106.5 14.3% (10)

Principal 5.7 0.1% 98.6 (92.9) -94.2% (11)

Interest 12.8 0.3% 25.5 (12.7) -49.8% (11)

Bond Issuance Cost 1.2 0.0% 1.6 (0.4) -25.0%

Total

4,882.9 100.0% 4,544.2 338.7 7.5%

(1) $19m increase in payroll; $74m increase in fringes.

(2) $15m increase in fringes.

(3) $30m increase in fringes.

(4) $17m increase in fringes.

(5) $11m decrease in conduit debt expenditures

(6) $6m increase in fringes.

(7)$12m inc in conduit debt; $20m inc due to payable timing; $14m inc in DHS class 200;

$15m inc in OSH class 200; $2m inc in fringes

(8) $22m inc in fringes

(9) $28m inc in fringes

(10) $40m inc due to payable timing; $11m inc in conduit debt exp.; $24m inc in fringes

$10m inc in CY payroll; $10m inc in cl200; $6 inc in debt

(11)The decrease in principal and interest is due to a refunding in FY21 that increased

increased principal and interest in FY21.

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The following schedules present a summary of General Fund revenues and obligations on the

budgetary basis and the amount and percentages of increases and decreases in relation to the prior

year. Please note that a narrative overview and analysis of these results will be included in the

Management’s Discussion and Analysis section of the City’s ACFR.

SUMMARY GENERAL FUND REVENUES – BUDGETARY BASIS

Amounts in Millions in USD

Percent Percent

of Increase Increase

Revenues

FY2022 Total FY2021 (Decrease) (Decrease)

Tax Revenue 4,139.4 71.8% 3,423.9 715.5 20.9%

Locally Generated Non-Tax Revenue 396.4 6.9% 344.2 52.2 15.2%

Revenue from Other Governments 931.2 16.1% 836.6 94.6 11.3%

Revenue from Other Funds 300.6 5.2% 87.8 212.8 242.4%

Total

5,767.6 100.0% 4,692.5 1,075.1 22.9%

SUMMARY GENERAL FUND EXPENDITURES – BUDGETARY BASIS

Amounts in Millions in USD

Percent Percent

of Increase Increase

Obligations

FY2022 Total FY2021 (Decrease) (Decrease)

Personal Services 1,890.7 35.4% 1,811.4 79.3 4.4%

Pension Contributions 1,031.3 19.3% 668.6 362.7 54.2%

Other Employee Benefits 658.7 12.3% 606.5 52.2 8.6%

Purchase of Services 1,014.4 19.0% 941.4 73.0 7.8%

Materials and Supplies 77.8 1.5% 60.9 16.9 27.8%

Equipment 47.8 0.9% 30.0 17.8 59.3%

Contributions, Indemnities and Taxes 384.9 7.2% 368.0 16.9 4.6%

Debt Service 188.7 3.5% 178.5 10.2 5.7%

Payments to Other Funds 44.1 0.8% 52.3 (8.2) -15.7%

Total

5,338.4 100.0% 4,717.6 620.8 13.2%

A more detailed comparison of budgetary basis revenue and expenditures can be found in Exhibit 16.

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SPECIAL REVENUE FUNDS

Special Revenue Funds consist of the County Liquid Fuels Tax Fund, the Special Gasoline Tax Fund,

the HealthChoices Behavioral Health Fund, the Hotel Room Rental Tax Fund, the Grants Revenue

Fund, the Community Development Fund, the Car Rental Tax Fund, the Housing Trust Fund, the Acute

Care Hospital Assessment Fund, the Riverview Residents Fund, the Philadelphia Prisons Fund, the

Arbitration Appeals Fund, the Departmental Fund, the Philadelphia Municipal Authority Administrative

Fund and the PICA Administrative Fund.

The following schedules present a summary of the Special Revenue Funds’ revenues and expenditures

for the fiscal year using the modified accrual basis. Please note that a narrative overview and analysis

of these results will be included in the Management’s Discussion and Analysis section of the City’s

ACFR.

SUMMARY SPECIAL REVENUE FUND REVENUES – MODIFIED ACCRUAL BASIS

Amounts in Millions of USD

Percent Percent

of Increase Increase

Revenues

FY2022 Total FY2021 (Decrease) (Decrease)

Tax Revenue 834.2 24.5% 750.5 83.7 11.2%

Locally Generated Non-Tax Revenue 75.9 2.2% 87.9 (12.0) -13.7%

Revenue from Other Governments 2,492.2 73.1% 2,574.2 (82.0) -3.2%

Other Revenue 7.7 0.2% 0.8 6.9 0.0%

Total

3,410.0 100.0% 3,413.4 (3.4) -0.1%

SUMMARY SPECIAL REVENUE FUND EXPENDITURES – MODIFIED ACCRUAL BASIS

Amounts in Millions in USD

Percent Percent

of Increase Increase

Expenditures

FY2022 Total FY2021 (Decrease) (Decrease)

Economic Development 56.1 1.9% 23.2 32.9 141.8%

Streets & Highways 38.3 1.3% 41.0 (2.7) -6.6%

Mass Transit 0.5 0.0% 0.6 (0.1) -16.7%

Police 5.8 0.2% 8.0 (2.2) -27.5%

Prisons 1.0 0.0% 0.8 0.2 25.0%

Courts 29.5 1.0% 30.4 (0.9) -3.0%

EMS 2.8 0.1% 3.8 (1.0) -26.3%

Health Services 1,854.4 62.2% 1,780.6 73.8 4.1%

Housing 218.9 7.3% 103.7 115.2 111.1%

Recreation and Parks 12.3 0.4% 8.7 3.6 41.4%

Libraries and Museums 5.9 0.2% 7.1 (1.2) -16.9%

Social Services 515.0 17.3% 552.2 (37.2) -6.7%

Sanitation 3.6 0.1% 3.7 (0.1) -2.7%

Fire 4.9 0.2% 3.6 1.3 0.0%

General Management 230.2 7.7% 306.5 (76.3) -24.9%

Total

2,979.2 100.0% 2,873.9 105.3 3.7%

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ENTERPRISE OPERATIONS

The City’s Enterprise Operations are comprised of three separate and distinct activities and are

accounted for in the following funds: Water Fund, Aviation Fund and Industrial and Commercial

Development Fund. The Water Fund provides water, sewer and storm water services on a user charge

basis. The Aviation Fund covers airport operations under a long-term lease agreement with the

individual user airlines. The Industrial and Commercial Development Fund accounts for acquisition and

disposition of land for industrial and commercial purposes. The following summary reflects preliminary

revenues, expenses, and results of operations for the individual Enterprise Funds:

SUMMARY ENTERPRISE FUNDS –FULL ACCRUAL (PRELIMINARY)

Amounts in Millions of USD

Industrial &

Commercial

Water Aviation Development

Fund

Fund Fund Totals

Operating Revenues 749.2 337.8 0.5 1,087.5

Operating Expenses 627.3 225.3 - 852.6

Operating Income (Loss) 121.9 112.5 0.5 234.9

Non-Operating Revenues(Expenses) (77.3) 60.9 28.4 12.0

Transfers (To) From Other Funds (48.4) - - (48.4)

Capital Contributions 1.4 32.3 - 33.7

Change in Net Position (2.4) 205.7 28.9 232.2

Net Position-July 1, 2021 875.1 1,064.0 85.1 2,024.2

Adjustment - - - 0.0

Net Position Adjusted - July 1, 2021 875.1 1,064.0 85.1 2,024.2

Net Position-June 30, 2022 872.7 1,269.7 114.0 2,256.4

BUDGETARY CONTROL AND BUDGET COMPARISON SCHEDULES

The City maintains budgetary controls to ensure compliance with legal provisions embodied in the

annual appropriated budget proposed by the Mayor and approved by City Council for the fiscal year

beginning July 1st. Activities of the General Fund, City Related Special Revenue Funds and the City

Capital Improvement Funds are budgeted annually. The level of budgetary control (that is, the level at

which expenditures cannot legally exceed the appropriated amount) is established by major class within

an individual department and fund for the operating funds and by project within department and fund for

the Capital Improvement Funds. The City also maintains an encumbrance accounting system for

control purposes. Encumbered amounts that have not been expended at year-end are carried forward

into the succeeding year but appropriations that have not been expended or encumbered at year-end

are lapsed.

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During the year, classification adjustments and supplementary appropriations were necessary for City

funds. Therefore, budgeted appropriation amounts in the Budgetary Comparison Schedules are

presented as follows:

Original Budgeted Amount - as originally passed by the City Council.

Final Budget Amount - as originally passed and as amended by the City Council.

CASH & INVESTMENT MANAGEMENT – PHILADELPHIA CITY TREASURER

Cash temporarily idle during the year is invested mainly in U.S. Treasury and agency obligations,

certificates of deposit, commercial paper, highly rated corporate bonds, money market mutual funds,

and repurchase agreements. The goals of the City’s cash management are preservation of principal,

maintenance of liquidity and maximization of return. The City’s investment policy is to minimize credit

and market risks while maintaining a competitive yield on its portfolio. Accordingly, deposits were either

insured by federal depository insurance or collateralized. All collateral on deposits was held either by

the City, its agent, the Federal Reserve Bank, or a financial institution’s trust department in the City’s

name.

CASH & INVESTMENT MANAGEMENT – PHILADELPHIA MUNICIPAL PENSION FUND

The Pension Trust Fund’s investment portfolio is based on an asset allocation developed in conjunction

with an outside consultant and includes cash, stocks, corporate and government bonds and other

items.

RISK MANAGEMENT

The City and several of its component units are primarily self-insured for fire damage, casualty losses,

public liability, Worker’s Compensation, and Unemployment Compensation. Liabilities arising in these

areas are liquidated with available resources of the respective operating funds. The Airports, the

Philadelphia Gas Works and the remaining component units are principally insured through insurance

carriers.

PENSION AND OTHER POST-EMPLOYMENT BENEFITS

The Charter mandates that the City maintain an actuarially sound pension and retirement system. To

satisfy that mandate, the City’s Board of Pensions and Retirement maintains a single-employer

Municipal Pension Plan (the Plan). The Plan covers all officers and employees of the City and officers

and employees of three other governmental and quasi-governmental organizations. By authority of

Ordinances and related amendments passed by City Council, the Plan provides retirement benefits as

well as death and disability benefits. Benefits vary by the class of employee. The plan has two major

classes of members - those covered under the 1967 Plan and those covered under the 1987 Plan. Both

of these plans have multiple divisions and are defined benefit plans. There are two more recent plans,

Plan 10 and Plan 16, that feature both a defined benefit component and a defined contribution

component.

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DEBT ADMINISTRATION

At fiscal year end, the City’s (excluding component units) bond ratings were as follows:

Bond Type

Moody's Investor

Service

Standard & Poor's

Corporation

Fitch IBCA

General Obligation Bonds A2 A A-

Water Revenue Bonds A1 A+ A+

Aviation Revenue Bonds A2 A- A

Under current state statutes, the City’s general obligation bonded debt issuances are subject to a legal

limitation. At June 30, 2022, the City’s (excluding component units) net general obligation authorized

debt of $2,316.5 million was $11,846.5 million below the legal limit of $14,163.0 million.

ACKNOWLEDGEMENTS

The preparation of the Annual Financial Report on a timely basis was made possible by the dedicated

service of the entire staff of the Office of the Director of Finance as well as various City departments

and component units. Each has my sincere appreciation for their valuable contributions.

Sincerely,

ROB DUBOW

Director of Finance

8

City of Philadelphia

Balance Shee

t

Governmental Funds

June 30, 2022

Special Revenue

County Special Health Choices Hotel Acute Care Municipal

Liquid Gasoline Behavioral Room Grants Community Car Housing Hospital Riverview Philadelphia Arbitration Authority

General Fuels Tax Tax Health Rental Tax Revenue Development Rental Tax Trust Assessment Residents Prisons Appeals Departmental Administrative

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101

Total Assets 2,449,670 19,420 56,545 540,037 16,014 2,249,274 19,316 8,261 84,069 26,137 30 5,889 72 9,104 20,834

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Total Liabilities 941,460 1,677 1,758 142,827 6,823 2,095,839 19,521 - 3,674 2,001 - 514 - 71 20,506

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- - -

148

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,

118

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,

088

- - - - -

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un

d

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l

ances:

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onspen

d

a

bl

e- - - - - - - - - - - - - - -

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estr

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d

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6

,

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1

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4

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8

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39

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9

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36

,

444

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80

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692

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un

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a

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ances

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Resources, and Fund Balances 2,449,670 19,420 56,545 540,037 16,014 2,249,274 19,316 8,261 84,069 26,137 30 5,889 72 9,104 20,834

Exhibit 1

Amounts in thousands of USD

9

City of Philadelphia

Balance Shee

t

Governmental Funds(Continued)

June 30, 2022

Debt Service Capital Improvement Permanent

Total Total

PICA Special Municipal Municipal Libraries & Governmental

Administrative Revenue City Authority PICA Total City Authority Total Parks Funds

A

ssets

C

as

h

on

D

epos

i

t an

d

on

H

an

d

5,

8

77

19

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3

,

6

5

6

3

,

6

5

6

- - - -

3

5,7

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qu

i

ty

i

n

T

reasurer

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s

A

ccount -

1

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02

,

861

2

5

3

- -

2

5

3

380

,

8

5

0

-

380

,

8

5

0

-

3

,

842

,

68

5

I

nvestments

14

,

462

14

,

462

- 7

3

7,

414

7,

48

7 -

8

9

,

803

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60

D

ue

f

rom

O

t

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er

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un

d

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,

238

- - - - - - - -

2

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48

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ue

f

rom

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omponent

U

n

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ts - - - - - - - - - - 5

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mounts

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gent - - - - - - - - - -

1

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421

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otes

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i

va

bl

e- - - - - - - - - - -

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axes

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ece

i

va

bl

e

6

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5

3

5,

4

75 - - - - - - - -

644

,

136

A

ccounts

R

ece

i

va

bl

e-

3

,

662

- - - - - - - -

406

,

8

7

4

D

ue

f

rom

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t

h

er

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overnmenta

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U

n

i

ts -

1

,

31

5,

96

7 - - - -

90

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90

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-

1

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40

7,

499

All

owance

f

or

D

ou

b

t

f

u

l

A

ccounts -

(19

,

383)

- - - - - - - -

(60

5,

993)

I

nterest an

d

Di

v

id

en

d

s

R

ece

i

va

bl

e5

421

- - 5 5 - - - - 7,7

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I

nventor

i

es - - - - - - - - - - -

O

t

h

er

A

ssets

16

11

7 - - - - - - - -

11

7

Total Assets 26,395 3,081,397 253 73 11,075 11,401 470,889 8 470,897 9,803 6,023,168

Li

a

bili

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i

es an

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F

un

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ers

P

aya

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48

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10

7 - - - -

1

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189

-

1

5,

189

-

126

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42

A

ccounts

P

aya

bl

e

6

7

1

57,

40

7 - - - - 5

4

,

49

5 - 5

4

,

49

5 -

362

,

663

S

a

l

ar

i

es an

d

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ages

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aya

bl

e-

10

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0

77 - - - - - - - -

128

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014

P

ayro

ll

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axes

P

aya

bl

e

192

- - - - - - - -

192

A

ccrue

d

E

xpenses - - - - - - - - - - -

D

ue to

O

t

h

er

F

un

d

s

6

,

039

1

7,

2

77 - - - - - - - -

113

,

488

D

ue to

P

r

i

mary

G

overnment - - - - - - - - - - -

D

ue to

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omponent

U

n

i

ts -

141

,

646

- - - -

349

-

349

-

1

5

2

,

4

77

F

un

d

s

H

e

ld

i

n

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scrow -

12

,

4

55 - - - -

2

,

960

-

2

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960

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30

,

1

7

4

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ue to

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t

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er

G

overnmenta

l

U

n

i

ts - - - - - - - - - - 5,

4

5

8

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nearne

d

R

evenue -

1

,

914

,

348

- - - -

10

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9

5 -

10

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9

5 -

2

,

13

5,

302

G

enera

l

Obli

gat

i

on

B

on

d

s- - - - - - - - - - -

R

evenue

B

on

d

s- - - - - - - - - - -

U

namort

i

ze

d

L

oss -

R

e

f

un

d

e

d

D

e

b

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namort

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Di

scount on

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on

d

s- - - - - - - - - - -

Obli

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ons

U

n

d

er

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ap

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eases - - - - - - - - - -

2

7

2

,

04

7

O

t

h

er

Li

a

bili

t

i

es - - - - - - - - - - -

Total Liabilities 6,298 2,301,509 - - - - 83,588 - 83,588 - 3,326,557

D

e

f

erre

d

I

n

fl

ows o

f

R

esources -

93

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3

7

6

- - - -

82

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1

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1

-

82

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1

7

1

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1

,

24

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7

F

un

d

B

a

l

ances:

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a

bl

e- - - - - - - - - 7,

882

7,

882

R

estr

i

cte

d

20

,

09

7

6

5

3

,5

66

2

5

3

7

3

11

,

0

75

11

,

401

30

5,

130

8

30

5,

138

1

,

921

1

,

148

,

448

C

omm

i

tte

d

- 7,

29

7 - - - - - - - - 7,

29

7

A

ss

i

gne

d

- - - - - - - - - -

692

,7

82

U

nass

i

gne

d

-

(816

,

3

5

1)

- - - - - - - -

(406

,

81

5

)

T

ota

l

F

un

d

B

a

l

ances

20

,

09

7

(1

55,

488)

2

5

3

7

3

11

,

0

75

11

,

401

30

5,

130

8

30

5,

138

9

,

803

1

,

449

,5

94

Total Liabilities and Fund Balances 26,395 3,081,397 253 73 11,075 11,401 470,889 8 470,897 9,803 6,023,168

Exhibit 1

Amounts in thousands of USD

10

Cit

y

of Philadel

p

hia

C

om

bi

n

i

ng

St

a

t

emen

t

o

f R

evenues,

E

xpen

dit

ures

an

d Ch

anges

i

n

F

un

d B

a

l

ances

Governmental Funds

For the Fiscal Year Ended June 30, 2022

Special Revenue

County Special Health Choices Hotel Acute Care Municipal

Liquid Gasoline Behavioral Room Grants Community Car Housing Hospital Riverview Philadelphia Arbitration Authority

General Fuels Tax Tax Health Rental Tax Revenue Development Rental Tax Trust Assessment Residents Prisons Appeals Departmental Administrative

Revenues

Tax Revenue 4,102,238 - - - 59,028 - - 6,850 - 189,587 - - - - -

Locally Generated Non-Tax Revenue 407,261 9 52 (639) 7 55,135 4 11 12,324 - - 2,340 164 6,687 74

Revenue from Other Governments 359,698 14,842 34,973 1,281,180 - 1,094,383 66,863 - - - - - - - -

Other Revenues 15,487 - - - - - - - 6,860 - - - - 319 -

Total Revenues 4,884,684 14,851 35,025 1,280,541 59,035 1,149,518 66,867 6,861 19,184 189,587 - 2,340 164 7,006 74

Expenditures

Current Operating:

Economic Development 34,437 - - - 55,751 330 - - - - - - - - -

Transportation:

Streets & Highways 92,035 7,289 26,564 - - 4,445 - - - - - - - - -

Mass Transit 91,214 - - - - 458 - - - - - - - - -

Judiciary and Law Enforcement:

Police 1,309,298 - - - - 5,787 - - - - - - - - -

Prisons 321,802 - - - - - - - - - - 972 - - -

Courts 345,197 - - - - 29,531 - - - - - - - - -

Conservation of Health:

Emergency Medical Services 97,088 - - - - 2,824 - - - - - - - - -

Health Services 218,914 - - 1,220,418 - 447,640 - - - 186,353 - - - - -

Housing and Neighborhood

Development 8,699 - - - - 118,083 76,109 - 24,680 - - - - - -

Cultural and Recreational:

Recreation 118,821 - - - - 4,920 - - - - - - - - -

Parks & Recreation - - - - - 43 - - - - - - - 7,364 -

Libraries and Museums 79,528 - - - - 5,701 - - - - - - - 168 -

Improvements to General Welfare:

Social Services 244,595 - - - - 514,992 - - - - - - - - -

Education 297,818 - - - - - - - - - - - - - -

Inspections and Demolitions 61,144 - - - - - - - - - - - - - -

Service to Property:

Sanitation 188,832 - 2,733 - - 875 - - - - - - - - -

Fire 501,884 - - - - 4,916 - - - - - - - - -

General Management and Support 852,120 - 500 - - 148,845 114 7,000 - - - 708 92 2,197 69,672

Capital Outlay - - - - - - - - - - - - - - -

Debt Service:

Principal 5,686 - - - - - - - - - - - - - -

Interest 12,782 - - - - - - - - - - - - - -

Bond Issuance Cost 1,195 - - - - - - - - - - - - - -

Capital Lease Principal - - - - - - - - - - - - - - -

Capital Lease Interest - - - - - - - - - - - - - - -

Total Expenditures 4,883,089 7,289 29,797 1,220,418 55,751 1,289,390 76,223 7,000 24,680 186,353 - 1,680 92 9,729 69,672

Excess (Deficiency) of Revenues

Over (Under) Expenditures 1,595 7,562 5,228 60,123 3,284 (139,872) (9,356) (139) (5,496) 3,234 - 660 72 (2,723) (69,598)

Other Financing Sources (Uses)

Issuance of Debt 98,560 - - - - - - - - - - - - - -

Issuance of Refunding Bonds - - - - - - - - - - - - - - -

Bond Issuance Premium 2,635 - - - - - - - - - - - - - -

Bond Issuance Discount - - - - - - - - - - - - - - -

Excess Pension Contribution - - - - - - - - - - - - - -

Payments to Refunded Bonds Escrow Agent - - - - - - - - - - - - - - -

Transfers In 846,191 - - - - - - - 6,860 - - - - 122 69,680

Transfers Out (227,350) - - - - (289,189) - - - (4,500) - - - - -

Special Items - - - - - - - - - - - - - - -

Total Other Financing Sources (Uses) 720,036 - - - - (289,189) - - 6,860 (4,500) - - - 122 69,680

Net Change in Fund Balances 721,631 7,562 5,228 60,123 3,284 (429,061) (9,356) (139) 1,364 (1,266) - 660 72 (2,601) 82

Fund Balance - July 1, 2021 557,109 10,181 49,559 337,087 5,759 (331,523) (9,967) 8,397 79,031 23,314 30 4,715 - 11,627 246

A

djustment - - - - - - - - - - - - - 7 -

Fund Balance Adjusted - July 1, 2021 557,109 10,181 49,559 337,087 5,759 (331,523) (9,967) 8,397 79,031 23,314 30 4,715 - 11,634 246

Fund Balance - June 30, 2022 1,278,740 17,743 54,787 397,210 9,043

(

760,584

)

(

19,323

)

8,258 80,395 22,048 30 5,375 72 9,033 328

Exhibit 2

Amounts in thousands of USD

11

Cit

y

of Philadel

p

hia

C

om

bi

n

i

ng

St

a

t

emen

t

o

f R

evenues,

E

xpen

dit

ures

an

d Ch

anges

i

n

F

un

d B

a

l

ances

Governmental Funds(Continued)

For the Fiscal Year Ended June 30, 2022

Debt Service Capital Improvement Permanent

Total Total

PICA Special Municipal Municipal Libraries & Governmental

Administrative Revenue City Authority PICA Total City Authority Total Parks Funds

Revenues

Tax Revenue 578,725 834,190 - - - - - - - - 4,936,428

Locally Generated Non-Tax Revenue (226) 75,662 30 - (382) (352) 116 2 118 1,069 483,758

Revenue from Other Governments - 2,708,356 - - - - 35,822 - 35,822 - 3,103,876

Other Revenues 515 7,694 - - - - 5,294 - 5,294 - 28,475

Total Revenues 579,014 3,625,902 30 - (382) (352) 41,232 2 41,234 1,069 8,552,537

Expenditures

Current Operating:

Economic Development - 56,081 - - - - - - - - 90,518

Transportation:

Streets & Highways - 38,298 - - - - - - - - 130,333

Mass Transit - 458 - - - - - - - - 91,672

Judiciary and Law Enforcement:

Police - 5,787 - - - - - - - - 1,315,085

Prisons - 972 - - - - - - - - 322,774

Courts - 29,531 - - - - - - - - 374,728

Conservation of Health:

Emergency Medical Services - 2,824 - - - - - - - - 99,912

Health Services - 1,854,411 - - - - - - - - 2,073,325

Housing and Neighborhood

Development - 218,872 - - - - - - - - 227,571

Cultural and Recreational:

Recreation - 4,920 - - - - - - - - 123,741

Parks & Recreation - 7,407 - - - - - - - - 7,407

Libraries and Museums - 5,869 - - - - - - - 69 85,466

Improvements to General Welfare:

Social Services - 514,991 - - - - - - - - 759,586

Education - - - - - - - - - - 297,818

Inspections and Demolitions - - - - - - - - - - 61,144

Service to Property:

Sanitation - 3,608 - - - - - - - - 192,440

Fire - 4,916 - - - - - - - - 506,800

General Management and Support 1,064 230,192 - - 7 7 - - - - 1,082,319

Capital Outlay - - - - - - 192,836 - 192,836 - 192,836

Debt Service:

Principal - - 104,745 5,390 23,085 133,220 - - - - 138,906

Interest - - 83,376 6,564 1,698 91,638 - - - - 104,420

Bond Issuance Cost - - 1,161 - - 1,161 1,757 - 1,757 - 4,113

Capital Lease Principal - - - - - - - - - - -

Capital Lease Interest - - - - - - - - - - -

Total Expenditures 1,064 2,979,137 189,282 11,954 24,790 226,026 194,593 - 194,593 69 8,282,914

Excess (Deficiency) of Revenues

Over (Under) Expenditures 577,950 646,765 (189,252) (11,954) (25,172) (226,378) (153,361) 2 (153,359) 1,000 269,623

Other Financing Sources (Uses)

Issuance of Debt - - - - - - 294,715 - 294,715 - 393,275

Issuance of Refunding Bonds - - 132,085 - - 132,085 - - - - 132,085

Bond Issuance Premium - - - - - - 73,042 - 73,042 - 75,677

Bond Issuance Discount - - - - - - - - - - -

Excess Pension Contribution - - - - - - - - - - -

Payments to Refunded Bonds Escrow Agent - - (130,924) - - (130,924) - - - - (130,924)

Transfers In - 76,662 188,200 11,979 23,382 223,561 7,796 - 7,796 - 1,154,210

Transfers Out (578,467) (872,156) - - - - (12,000) (17,776) (29,776) (123) (1,129,405)

Special Items - - - - - - - - - - -

Total Other Financing Sources (Uses) (578,467) (795,494) 189,361 11,979 23,382 224,722 363,553 (17,776) 345,777 (123) 494,918

Net Change in Fund Balances (517) (148,729) 109 25 (1,790) (1,656) 210,192 (17,774) 192,418 877 764,541

Fund Balance - July 1, 2021 20,614 209,070 106 48 12,865 13,019 94,938 17,782 112,720 8,926 900,844

A

djustment - 7 38 - - 38 - - - - 45

Fund Balance Adjusted - July 1, 2021 20,614 209,077 144 48 12,865 13,057 94,938 17,782 112,720 8,926 900,889

Fund Balance - June 30, 2022 20,097 60,348 253 73 11,075 11,401 305,130 8 305,138 9,803 1,665,430

Exhibit 2

Amounts in thousands of USD

12

City of Philadelphia

Statement of Fund Net Position

Proprietary Funds

June 30, 2022

Business Type Activities - Enterprise Funds

Other Non-Major

Industrial &

Water and Commercial

Asset

s

Sewer Aviation Development Total

Current Assets:

Cash on Deposit and on Hand 30 - - 30

Equity in Treasurer's Account 171,415 381,744 10,265 563,424

Due from Other Governments 243 28,275 28,518

Accounts Receivable 183,333 20,722 - 204,055

Allowance for Doubtful Accounts (20,476) (11) - (20,487)

Inventories 22,198 4,955 75,430 102,583

Other Assets 1,229 - - 1,229

Total Current Assets 357,729 407,653 113,970 879,352

Non-Current Assets:

Restricted Assets:

Equity in Treasurer's Account 687,434 630,349 - 1,317,783

Sinking Funds and Reserves 194,285 141,379 - 335,664

Grants for Capital Purposes 19,589 - 19,589

Receivables 1,246 7,376 - 8,622

Total Restricted Assets 882,965 798,693 - 1,681,658

Capital Assets:

Land 5,969 230,643 - 236,612

Infrastructure 2,941,381 1,295,029 - 4,236,410

Construction in Progress 642,694 542,811 - 1,185,505

Buildings and Equipment 2,143,983 2,555,232 - 4,699,215

Less: Accumulated Depreciation (2,752,259) (2,267,721) - (5,019,980)

Total Capital Assets, Net 2,981,768 2,355,994 - 5,337,762

Total Non-Current Assets 3,864,733 3,154,687 - 7,019,420

Total Assets 4,222,462

3,562,340 113,970 7,898,772

Deferred Outflows of Resources

72,082 17,549 - 89,631

Liabilities

Current Liabilities:

Vouchers Payable 11,158 21,618 - 32,776

Accounts Payable 19,472 - - 19,472

Salaries and Payroll Deductions Payable 5,895 4,221 - 10,116

Construction Contracts Payable 29,644 32,807 - 62,451

Due to Other Funds 8,091 - - 8,091

Due to Component Units 1,197 - - 1,197

Accrued Expenses 27,666 33,895 - 61,561

Funds Held in Escrow 1,637 - - 1,637

Unearned Revenue 15,025 41,728 - 56,753

Commercial Paper Notes 3,000 125,343 - 128,343

Bonds Payable-Current 84,343 52,240 - 136,583

Other Current Liabilities 2,415 2,605 - 5,020

Total Current Liabilities 209,543 314,457 - 524,000

Derivative Instrument Liability 2,972 - 2,972

Net OPEB Liability 157,204 73,265 - 230,469

Net Pension Liability 333,064 172,895 - 505,959

Non-Current Liabilities:

Bonds Payable, net of Unamortized Premiums/Discounts 2,599,489 1,571,221 - 4,170,710

Other Non-Current Liabilities 49,872 137,722 - 187,594

Total Non-Current Liabilities 2,649,361 1,708,943 - 4,358,304

Total Liabilities 3,349,172 2,272,532 - 5,621,704

Deferred Inflows of Resources

72,552 37,725 - 110,277

Net Position

Net Investment in Capital Assets 623,014 865,501 - 1,488,515

Restricted For:

Capital Projects 219,637 61,317 - 280,954

Debt Service 194,592 160,221 - 354,813

Rate Stabilization 139,669 - - 139,669

Unrestricted (304,092) 182,593 113,970 (7,529)

Total Net Position 872,820 1,269,632 113,970 2,256,422

The notes to the financial statements are an integral part of this statement.

Exhibit 3

Amounts in thousands of USD

13

Cit

y

of Philadel

p

hia

Statement of Revenues, Expenses and Changes in Fund Net Position

Proprietary Funds

For the Fiscal Year Ended June 30, 2022

Business-Type Activities - Enterprise Fund

s

Othe

r

Non-Majo

r

Industrial &

Water and Commercial

Sewe

r

A

viation Developmen

t

Totals

Operating Revenues:

Charges for Goods and Services 735,859 108,349 - 844,208

Rentals and Concession

s

- 224,195 - 224,195

Operating Grant

s

464 - - 464

Miscellaneous Operating Revenue

s

12,921 5,255 456 18,632

Total Operating Revenues 749,244 337,799 456 1,087,499

Operating Expenses:

Personal Services 161,893 73,910 - 235,803

Purchase of Services 135,759 96,124 - 231,883

Materials and Supplie

s

46,065 5,633 - 51,698

Employee Benefits 132,086 44,783 - 176,869

Indemnities and Taxe

s

6,369 4,890 - 11,259

Depreciation 145,093 - - 145,093

Total Operating Expense

s

627,265 225,340 - 852,605

Operating Income (Loss

)

121,979 112,459 456 234,894

Non-Operating Revenues (Expenses):

Federal, State and Local Grant

s

- 54,081 - 54,081

Passenger and Customer Facility Charge

s

- 60,784 - 60,784

Interest Income 5,094 (8,753) 20 (3,639)

Debt Service - Interes

t

(92,979) (44,480) - (137,459)

Other Revenue (Expenses

)

10,593 (773) 28,388 38,208

Total Non-Operating Revenues (Expenses

)

(77,292) 60,859 28,408 11,975

Income (Loss) Before Contributions & Transfer

s

44,687 173,318 28,864 246,869

Transfers In/(Out) (48,378) - - (48,378)

Capital Contributions 1,373 32,301 - 33,674

Change in Net Position (2,318) 205,619 28,864 232,165

Net Position - July 1, 2021 875,138 1,064,013 85,106 2,024,257

A

djustmen

t

- - - -

Net Position Adjusted - July 1, 2021 875,138 1,064,013 85,106 2,024,257

Net Position - June 30, 202

2

872,820 1,269,632 113,970 2,256,422

The notes to the financial statements are an integral part of this statement.

Exhibit 4

Amounts in thousands of USD

14

City of Philadelphia

Combining Statement of Fiduciary Net Positio

n

Pension Trust Funds

June 30, 2022

Gas Works

Retirement Municipal

Reserve Pension

Fund

Fund Total

Assets

Cash on Deposit and on Hand 29,834 - 29,834

Equity in Treasurer's Account 535,244 6,774,895 7,310,139

Securities Lending Collective Investment Pool 41,840 181,952 223,792

Accounts Receivable - 5,262 5,262

Due from Brokers for Securities Sold 733 231,937 232,670

Interest and Dividends Receivable 1,796 - 1,796

Due from Other Governmental Units - 6,080 6,080

Due from Other Funds - 78,845 78,845

Total Assets 609,447 7,278,971 7,888,418

Liabilities

Vouchers Payable - 27 27

Accounts Payable 179 - 179

Salaries and Wages Payable - 216 216

Due on Return of Securities Loaned 41,840 181,952 223,792

Due to Brokers for Securities Purchased 1,545 243,094 244,639

Accrued Expenses - 2,310 2,310

Other Liabilities 135 208 343

Total Liabilities 43,699 427,807 471,506

Net Position Restricted for Pensions 565,748 6,851,164 7,416,912

Exhibit 5

Amounts in thousands of USD

15

City of Philadelphia

Combining Statement of Changes in Fiduciary Net Positio

n

Pension Trust Funds

For the Fiscal Year Ended June 30, 202

2

Gas Works

Retirement Municipal

Reserve Pension

Fund

Fund Total

Additions

Contributions:

Employer's Contributions 30,043 843,502 873,545

Employees' Contributions 1,854 110,447 112,301

Total Contributions 31,897 953,949 985,846

Investment Income:

Interest and Dividends 14,096 171,746 185,842

Net Decline in Fair Value of Investments (93,175) (718,308) (811,483)

(Less) Investments Expenses (2,036) (6,276) (8,312)

Securities Lending Revenue 141 - 141

(Less) Securities Lending Expenses (88) - (88)

Net Investment Loss (81,062) (552,838) (633,900)

Miscellaneous Operating Revenues 73 145 218

Total Additions (Reductions) (49,092) 401,256 352,164

Deductions

Personal Services - 3,608 3,608

Purchase of Services - 1,689 1,689

Materials and Supplies - 61 61

Employee Benefits - 2,943 2,943

Pension Benefits 58,502 953,292 1,011,794

Refunds of Members' Contributions - 13,394 13,394

Administrative Expenses Paid 200 - 200

Other Operating Expenses - 88 88

Total Deductions 58,702 975,075 1,033,777

Change in Net Position (107,794) (573,819) (681,613)

Net Position - July 1, 2021 673,542 7,424,983 8,098,525

Net Position - June 30, 2022 565,748 6,851,164 7,416,912

Exhibit 6

Amounts in thousands of USD

16

City of Philadelphia

Combinin

g

Statement of Fiduciar

y

Net Position

Custodial Funds

June 30, 2022

Police

Human

Services Prisons

Homeless

Services Records Finance

District

Attorney Sheriff

1st Judicial

District

Clerk of

Quarter

Session Total

Assets

Cash on Deposit and on Hand $ 28,588 84 1,844 4 1,014 - 2,590 37,240 24,405 49,883 145,652

Equity in Treasurer's Account - - - - - 562 - - - - 562

Investments 2,473 - - - - - - - - - 2,473

Due from Other Funds - - - - - 699 - - - - 699

Total Assets 31,061 84 1,844 4 1,014 1,261 2,590 37,240 24,405 49,883 149,386

Liabilities

Vouchers Payable - - - - - 43 - - - - 43

Funds Held in Escrow 74 84 1,844 4 1,014 1,218 - 65 233 - 4,536

Total Liabilities 74 84 1,844 4 1,014 1,261 - 65 233 - 4,579

Net Position Restricted for Individuals,

Organizations & Other Governments $ 30,987 - - - - - 2,590 37,175 24,172 49,883 144,807

Exhibit 7

Amounts in thousands of USD

17

City of Philadelphia

Combining Statement of Changes in Fiduciary Net Positio

n

Custodial Fund

s

For the Fiscal Year Ended June 30, 2022

Police

Human

Services Prisons

Homeless

Services Records Finance

District

Attorney Sheriff

1st Judicial

District

Clerk of

Quarter

Session Total

Additions:

Collection of Human Services fees, contributions, and holdings $ 262 1 - - - - - - - - 263

Collection of Judicial charges, fees, and holdings - - - - - - - - 4 - 4

Collection of prisoner holdings - - 6,005 - - - - - - - 6,005

Collection of recording fees for other governments - - - - 1,442 - - - - - 1,442

Collection of Sheriff and Police forfeitures, seizures, and holdings 18,939 - - - - - - 11,994 - - 30,933

Total Additions 19,201 1 6,005 - 1,442 - - 11,994 4 - 38,647

Deductions:

Distribution of Human Service fees, contributions and holdings 262 1 - - - - - - - - 263

Distribution of Judicial charges, fees, and holdings - - - - - - - - 1,098 - 1,098

Distribution of prisoner holdings - - 6,005 -

- -

- - - - 6,005

Distribution of recording fees for other governments - - - - 1,442 - - - - - 1,442

Distribution of Sheriff and Police forfeitures, seizures, and holdings 1,171 - - - - - - 12,763 - - 13,934

Total Deduction 1,433 1 6,005 - 1,442 - - 12,763 1,098 - 22,742

Change in net position 17,768 - - - - - - (769) (1,094) - -

Net Position - July 1, 2021 13,219 - - - - - 2,590 37,944 25,266 49,883 128,902

Net Position - June 30, 202

2

$ 30,987 - - - - - 2,590 37,175 24,172 49,883 144,807

Exhibit 8

Amounts in thousands of USD

18

City of Philadelphia Exhibit 9

Statement of Long-Term Deb

t

June 30, 2022

Amount Available and to be Provided for Retirement

of Long-Term Debt - Principal

Bond Principal:

Amount Available in Sinking Funds and Sinking Fund Reserve for Revenue

Bonds 311.2

Amount of Principal to be Provided in Future Years 5,500.3

Total Bond Principal Available and to be Provided 5,811.5

Other Long-Term Obligations:

Amount of Principal to be Provided in Future Years 9,802.1

Total Available and to be Provided in Future Year

s

15,613.6

Bonds Payable in Future Years:

General Obligation Serial Bonds Payable 898.9

General Obligation Term Bonds Payable 28.6

General Obligation Refunding Bonds Payable 913.7

Total General Obligation Bonds Payable 1,841.2

Revenue Serial Bonds Payable 2,228.7

Revenue Term Bonds Payable 1,741.6

Total Revenue Bonds Payable 3,970.3

Total Bonds Payable 5,811.5

Other Long-Term Obligations Payable 9,802.1

Total Long-Term Debt

15,613.6

Amounts in millions of USD

19

Cit

y

of Philadel

p

hia

Exhibit 10

Anal

y

sis of Chan

g

es In Bonded Debt Outstandin

g

For the Fiscal Year Ended June 30, 2022

Governmental Fund Type

s

Enterprise Funds

Municipal All

General Authorit

y

Water Aviation Funds

Fund

Fund PIC

A

Total Fund Fund Total Total

Bonded Debt Outstanding,

July 1, 2021 1,635.8 143.0 34.0 1,812.8 2,279.7 1,449.4 3,729.1 5,541.9

Increases:

Par Value of Bonds Issued:

General Obligation 426.8 - - 426.8 - - - 426.8

Revenue - - - - 231.9 302.0 533.9 533.9

Total Bonds Sold

426.8 - - 426.8 231.9 302.0 533.9 960.7

Decreases:

Matured Bonds:

General Obligation 104.7 5.4 23.1 133.2 - - - 133.2

General Obligation Refunded 116.7 - - 116.7 - - - 116.7

Revenue - - - - 89.0 53.9 142.9 142.9

Revenue Refunded - - - - - 149.8 149.8 149.8

-

Total Decrease

221.4 5.4 23.1 249.9 89.0 203.7 292.7 542.6

Net Change:

General Obligation 205.4 (5.4) (23.1) 176.9 - - - 176.9

Revenue - - - - 142.9 98.3 241.2 241.2

Total Change 205.4 (5.4) (23.1) 176.9 142.9 98.3 241.2 418.1

Bonded Debt Outstanding,

June 30, 2022 1,841.2 137.6 10.9 1,989.7 2,422.6 1,547.7 3,970.3 5,960.0

Amounts in millions of USD

20

City of Philadelphia Exhibit 11

Analysis of Changes in Other Long-Term Deb

t

For the Fiscal Year Ended June 30, 2022

General Water

A

viation Other Total

Fund

Fund Fund Funds

A

ll Funds

Balance Outstanding, July 1, 2021

Worker's Compensation 267,312 23,761 5,940 - 297,013

Termination Compensation 598,350 24,152 19,960 526 642,988

Medical and Indemnity Claims 188,015 4,612 834 - 193,461

Net Pension Liability 4,215,391 333,064 172,895 - 4,721,350

OPEB 1,857,686 157,204 73,265 - 2,088,155

Leases 233,453 - - - 233,453

Pension Service Agreement Series 1999 631,256 - - - 631,256

Pension Refunding Service Agreement 257,595 - - - 257,595

Philadelphia Redevelopment Authority 172,990 - - - 172,990

Sports Stadium 200,120 - - - 200,120

Central Library Project 2,990 - - - 2,990

Cultural Corridor Bonds 71,370 - - - 71,370

One Parkwa

y

19,495 - - - 19,495

Philadelphia Municipal Authority 142,960 - - - 142,960

PIC

A

33,955 - - - 33,955

Philadelphia Affordable Housing Project 47,430 - - - 47,430

Philadelphia Museum of Art 9,240 - - - 9,240

Rebuild Project 73,670 - - - 73,670

9,023,278 542,793 272,894 526 9,839,491

Increases:

Pension Service Agreement Series 1999 10,462 - - - 10,462

Philadelphia Redevelopment Authority 98,560

Sports Stadium - - - -

PIC

A

- - - -

Philadelphia Museum of Art - - - - -

Rebuild Project - - - - -

Total Increases

109,022 - - - 10,462

Decreases:

Pension Service Agreement Series 1999 75,000 - - - 75,000

Pension Refunding Service Agreement - -

Philadelphia Redevelopment Authority 12,755 - - - 12,755

Sports Stadiums 16,125 - - - 16,125

Central Library Project 705 705

Cultural Corridor Bonds 4,990 - - - 4,990

One Parkwa

y

2,865 - - - 2,865

Philadelphia Municipal Authority 5,390 - - - 5,390

PIC

A

23,085 - - - 23,085

Philadelphia Affordable Housing Project 1,985 - - - 1,985

Philadelphia Museum of Art 355 - - - 355

Rebuild Project 3,115 - - - 3,115

Total Decreases

146,370 - - - 140,915

Balance Outstanding, June 30, 2022

Worker's Compensation 267,312 23,761 5,940 - 297,013

Termination Compensation 598,350 24,152 19,960 526 642,988

Indemnity Claims 188,015 4,612 834 - 193,461

Net Pension Liability 4,215,391 333,064 172,895 - 4,721,350

OPEB 1,857,686 157,204 73,265 - 2,088,155

Leases 233,453 - - - 233,453

Pension Service Agreement Series 1999 566,718 - - - 566,718

Pension Refunding Service Agreement 257,595 - - - 257,595

Philadelphia Redevelopment Authority 258,795 - - - 258,795

Sports Stadiums 183,995 - - - 183,995

Central Library Project 2,285 - - - 2,285

Cultural Corridor Bonds 66,380 - - - 66,380

One Parkwa

y

16,630 - - - 16,630

Philadelphia Municipal Authority 137,570 - - - 137,570

PIC

A

10,870 - - - 10,870

Philadelphia Affordable Housing Project 45,445 - - - 45,445

Philadelphia Museum of Art 8,885 - - - 8,885

Rebuild Project 70,555 - - - 70,555

8,985,930 542,793 272,894 526 9,802,143

Amounts in thousands of USD

21

City of Philadelphia Exhibit 12

City Related Schedule of Debt Incurring Capacity

June 30, 2022

Amounts in millions of USD

Authorized

Issued and

Outstanding

Unissued Total

General Obligation Bonded Debt:

Tax Supported 1,841.1 475 2,316.5

Self-Sustaining - 352.6 352.6

Total General Obligation Bonded Deb

t

1,841.1 828.0 2,669.1

Applicable

to Self- Net

Total

Sustaining Deductions

Deductions Authorized by Law:

Appropriation for Maturing Serials (Fiscal 2022) - - -

Total Self-Sustaining Debt 352.6

Total Net Deductions Authorized by Law 352.6

Total Amount of Debt Applicable to Debt Limit 2,316.5

Legal Debt Limit (Notes 1, 2, 3, 4, 5, and 6) 14,163

Legal Debt Margin 11,846.5

NOTES:

(1) Refer to Purdon's Statutes 53 P.S. Sections 15721 - 727 - 728 - 761 - 763 and 781.

(2) This statement does not reflect $4,815.9 million of Revenue Bonds, which are secured by a pledge of

Water and Sewer Revenues of $2,279.7 million, Airport revenues of $1,449.4 million, and Gas Works revenues of $1,086.8 million.

(3) The legal limit is based on the Pennsylvania Constitution, Article IX, Section 12.

(4) Calendar Years 2011 - 2012 assessed values were provided by OPA via the Department of Revenue.

(5) Calendar Year 2013/Tax Year 2014 assessed values were provided by OPA. The higher amount was due to the implementation

of the AVI (Actual Value Initiative) in 2013.

(6) Beginning in 2014, the Finance Department began using Calendar Year assessed values to calculate the preceding 10-year average;

prior to this change, the Tax Year assessed values were used.

Calendar Year Tax Year

of Assessment

of Assessment R.E. Assessments

2012 2013 13,755,670,566

2013 2014 107,209,023,547

2014 2015 106,062,882,977

2015 2016 98,268,051,621

2016 2017 99,343,238,214

2017 2018 114,493,581,457

2018 2019 126,865,207,235

2019 2020 125,555,031,478

2020 2021 128,770,069,988

2021 2022 128,790,111,318

Ten-Year Average: 104,911,286,840

Limit per Article IX: 13.50%

Legal Debt Limit: 14,163,023,723

22

City of Philadelphia

Statement of Net Position

Component Units

June 30, 2022

Community Philadelphia

Philadelphia Philadelphia Philadelphia School College Community Authority for

Philadelphia Housing Redevelopment Parking District of of Behavioral Industrial

Gas Works*

Authority* Authority Authority* Philadelphia Philadelphia Health* Development* Total

Assets

Cash on Deposit and on Hand - 219,421 - - - 23,870 33,678 46,247 323,216

Investments - - - - - 56,815 - - 56,815

Due from Primary Government - - - - - - 139,686 - 139,686

Notes Receivable - 71,082 - - - - - - 71,082

Accounts Receivable-Net - 21,905 - - - 39,725 1,080 4,313 67,023

Allowance for Doubtful Accounts - - - - - (691) - - (691)

Interest and Dividends Receivable - 15 - - - - - - 15

Due from Other Governments - 217,829 - - - 39,160 - 4,559 261,548

Inventories - 1,544 - - - - - - 1,544

Other Assets - 9,728 - - - 1,506 3,572 950 15,756

Restricted Assets:

Cash and Cash Equivalents -

93,7

22 - - - - - 74,415 168,137

Other Assets - 5,468 - - - 8,696 - 6,876 21,040

Capital Assets:

Land and Other Non-Depreciated Assets - 152,322 - - - 60,809 - 11,003 224,134

Other Capital Assets (Net of Depreciation) - 1,055,456 - - - 128,672 5,897 114,135 1,304,160

Total Capital Assets - 1,207,778 - - - 189,481 5,897 125,138 1,528,294

Total Assets - 1,848,492 - - - 358,562 183,913 262,498 2,653,465

Deferred Outflows of Resources

- 4,564 - - - 25,147 505 - 30,216

Liabilities

Notes Payable - - - - - 25,945 - - 25,945

Vouchers Payable - - - - - 13,049 - - 13,049

Accounts Payable - 12,109 - - - - 15,176 14,310 41,595

Salaries and Wages Payable - 4,743 - - - 8,986 - - 13,729

Accrued Expenses - 13,248 - - - 2,076 92,753 - 108,077

Funds Held in Escrow - 2,765 - - - 536 - 519 3,820

Due to Other Governments - 307 - - - 204 - - 511

Due to Primary Government - - - - - - - 22,158 22,158

Unearned Revenue - 2,752 - - - 3,320 3,683 119,857 129,612

Other Current Liabilities - 11,952 - - - - 62,246 - 74,198

Non-Current Liabilities: - -

- - - - - -

Due wi

thin one year - 55,271 - - - 8,334 - 1,066 64,671

Due in more than one year - 164,915 - - - 62,128 - 21,798 248,841

Net OPEB Liability - 1,447 - - - 192,064 5,680 - 199,191

Net Pension Liability - 41,045 - - - - - - 41,045

Total Liabilities - 310,554 - - - 316,642 179,538 179,708 986,442

Deferred Inflows of Resources

- 22,226 - - - 48,604 1,169 - 71,999

Net Position

Net Investment in Capital Assets - 744,655 - - - 110,433 5,897 102,321 963,306

Restricted For:

Capital Projects - - - - - 10,859 - - 10,859

Educational Programs - - - - 14,483 - - 14,483

Grant Programs - 3,425 - - - - - 82,194 85,619

Other - 19,465 - - - - - - 19,465

Unrestricted - 752,731 - - - (117,312) (2,186) (101,725) 531,508

Total Net Position - 1,520,276 - - - 18,463 3,711 82,790 1,625,240

*

The Philadelphia Gas Works is presented as of the close of their fiscal year, August 31, 2022. Community Behavioral Health and the Philadelphia Authority for Industrial Development are presented

as of the close of their fiscal year, December 31, 2021. The Philadelphia Parking Authority and Philadelphi Housing Authority are presented as of the close of their fiscal year, March 31, 2022.

The notes to the financial statements are an integral part of this statement.

Exhibit 13

Amounts in thousands of USD

23

City of Philadelphia

Statement of Activities

Component Units

For the Fiscal Year Ended June 30, 2022

Net (Expense) Revenue and

Program Revenues Changes in Net Position

School Community Delaware Philadelphia

Operating Capital Philadelphia Philadelphia Philadelphia District College Community River Authority for

Charges for Grants and Grants and Philadelphia Housing Redevelopment Parking of of Behavioral Waterfront Industrial

Functions

Expenses Services Contributions Contributions Gas Works* Authority* Authority Authority* Philadelphia Philadelphia Health* Corp. Development* Total

Gas Operations

Gas Works - - - - - -

Housing

Housing Authority 431,043 59,893 447,718 11,613 88,181 88,181

Redevelopment Authority - - -

431,043 59,893 447,718 11,613

Parking

Parking Authority - - - - - -

Education

School District - - - - - -

Community College 194,874 24,872 114,698 - (55,304) (55,304)

Total 194,874 24,872 114,698 -

Health

Community Behavioral Health 1,178,782 - 1,179,148 - 366 366

Economic Development

Authority for Ind. Development 150,893 815 72,991 - (77,087) (77,087)

Total 150,893 815 72,991 -

Total Component Units 1,955,592 85,580 1,814,555 11,613 (43,844)

General Revenues:

Property Taxes - - - - - - - - - -

Other Taxes - - - - - - - - - -

Grants & Contributions Not Restricted to Specific Programs - 47,335 - - - 81,060 - - - 128,395

Unrestricted Interest & Investment Earnings - (2,585) - - - (6,128) 90 - 429 (8,194)

Miscellaneous - 2,852 - - - 4,468 - - - 7,320

Special Item-Gain (Loss) on Sale of Capital Assets - - - - - - - - 1,530 1,530

Transfers 79,268 79,268

Total General Revenue ,Special items and Transfers - 47,602 - - - 79,400 90 - 81,227 208,319

Change in Net Position - 135,783 - - - 24,096 456 - 4,140 164,475

Net Position - July 1, 2021 - 1,384,493 -

-

- (5,633) 3,255 - 78,650 1,460,765

Adjustment - - - - - - - - - -

Net Position Adjusted - July 1, 2021 - 1,384,493 - - - (5,633) 3,255 - 78,650 1,460,765

Net Position - June 30, 2022 - 1,520,276 - - - 18,463 3,711 - 82,790 1,625,240

* The Philadelphia Gas Works is presented as of the close of their fiscal year, August 31, 2022. Community Behavioral Health and the Philadelphia Authority for Industrial Development are presented

as of the close of their fiscal year, December 31, 2021. The Philadelphia Parking Authority and the Philadelphia Housing Authority are presented as of the close of their fiscal year, March 31, 2022.

The notes to the financial statements are an integral part of this statement.

Exhibit 14

Amounts in thousands of USD

24

Required Supplementary Information Exhibit 15

Budgetary Comparison Schedule

General Fund

For the Fiscal Year Ended June 30, 2022

Final Budget

Budgeted Amounts to Actual

Positive

Original

Final Actual* (Negative)

Revenues

Tax Revenue 3,417,808 3,922,637 4,139,390 216,753

Locally Generated Non-Tax Revenue 364,391 373,199 396,364 23,165

Revenue from Other Governments 829,140 872,621 931,192 58,571

Revenue from Other Funds 645,906 322,250 300,567 (21,683)

Total Revenues 5,257,245 5,490,707 5,767,513 276,806

Expenditures and Encumbrances

Personal Services 1,888,766 1,964,118 1,890,730 73,388

Pension Contributions 774,150 1,031,311 1,031,311 -

Other Employee Benefits 664,443 655,209 658,720 (3,511)

Sub-Total Employee Compensation 3,327,359 3,650,638 3,580,761 69,877

Purchase of Services 1,094,526 1,114,915 1,014,397 100,518

Materials and Supplies 74,137 86,770 77,847 8,923

Equipment 44,672 57,946 47,773 10,173

Contributions, Indemnities and Taxes 386,793 391,828 384,930 6,898

Debt Service 192,667 192,667 188,718 3,949

Payments to Other Funds 48,792 45,952 44,101 1,851

Advances, Subsidies, Miscellaneous 100,000 80,630 - 80,630

Total Expenditures and Encumbrances 5,268,946 5,621,346 5,338,527 282,819

Operating Surplus (Deficit) for the Year (11,701) (130,639) 428,986 559,625

Fund Balance Available

for Appropriation, July 1, 2021 78,748 298,542 298,542 -

Operations in Respect to Prior Fiscal Years

Commitments Cancelled - Net 24,000 27,532 51,616 24,084

Funding for Future Obligations (4,500) (4,500) - 4,500

Adjusted Fund Balance, July 1, 2021 98,248 321,574 350,158 28,584

Fund Balance Available

for Appropriation, June 30, 2022 86,547 190,935 779,144 588,209

* Refer to the notes to required supplementary information.

Amounts in thousands of USD

25

City of Philadelphia

Schedule of Budgetary Actual and Estimated Revenues and Obligations

General Fund

For the Fiscal Year Ended June 30, 2022 (with comparative actual amounts for the Fiscal Year Ended June 30, 2021)

Final Budge

t

Budgeted Amount

s

to Actual

FY 2022 Positive FY 2021 Increase

Original Final Actual (Negative) Actual (Decrease)

Revenue

Taxes

Real Property Tax:

Current 696,346 689,941 670,754 (19,187) 693,933 (23,179)

Prior Years 26,737 28,739 29,882 1,143 29,388 494

Total Real Property Tax 723,083 718,680 700,636 (18,044) 723,321 (22,685)

Wage and Earnings Taxes:

Current 1,484,410 1,533,313 1,648,128 114,815 1,448,007 200,121

Prior Years 2,000 5,400 5,750 350 2,738 3,012

Total Wage and Earnings Taxes 1,486,410 1,538,713 1,653,878 115,165 1,450,745 203,133

Business Taxes:

Business Income & Receipts Taxes:

Current 486,199 610,242 727,175 116,933 475,662 251,513

Prior Years 35,000 23,000 22,690 (310) 65,936 (43,246)

Total Business Income & Receipts Taxes 521,199 633,242 749,865 116,623 541,598 208,267

Net Profits Tax:

Current 25,658 29,871 21,963 (7,908) 42,514 (20,551)

Prior Years 4,700 4,700 5,323 623 1,860 3,463

Total Net Profits Tax 30,358 34,571 27,286 (7,285) 44,374 (17,088)

Total Business Taxes 551,557 667,813 777,151 109,338 585,972 191,179

Other Taxes:

Sales Tax 216,424 268,439 277,690 9,251 230,408 47,282

Amusement Tax 12,963 21,828

26,055 4,227 2,918 23,137

Beverage Tax 72,515 76,932 75,367 (1,565) 70,155 5,212

Real Property Transfer Tax 294,859 537,670 536,894 (776) 303,989 232,905

Parking Lot Tax 56,429 88,284 86,621 (1,663) 53,212 33,409

Smokeless Tobacco 1,066 783 737 (46) 522 215

Miscellaneous Taxes 2,502 3,495 4,361 866 2,615 1,746

Total Other Taxes 656,758 997,431 1,007,725 10,294 663,819 343,906

Total Taxes 3,417,808 3,922,637 4,139,390 216,753 3,423,857 715,533

Locally Generated Non-Tax Revenue

Rentals from Leased City Properties 3,540 2,281 3,696 1,415 2,192 1,504

Licenses and Permits 72,955 78,248 85,660 7,412 77,404 8,256

Fines, Forfeits, Penalties, Confiscated

Money and Property 25,003 15,785 13,377 (2,408) 16,017 (2,640)

Interest Income 5,394 5,344 (3,048) (8,392) 11,241 (14,289)

Service Charges and Fees 176,191 171,935 190,609 18,674 168,612 21,997

Other 81,308 99,606 106,070 6,464 68,723 37,347

Total Locally Generated Non-Tax Revenue 364,391 373,199 396,364 23,165 344,189 52,175

Revenue from Other Governments

United States Government:

Grants and Reimbursements 52,781 79,391 22,751 (56,640) 35,278 (12,527)

Commonwealth of Pennsylvania:

Grants and Other Payments 221,415 219,279 235,158 15,879 230,882 4,276

Other Governmental Units 554,944 573,951 673,283 99,332 570,494 102,789

Total Revenue from Other Governments 829,140 872,621 931,192 58,571 836,654 94,538

Revenue from Other Funds

645,906 322,250 300,567 (21,683) 87,789 212,778

Total Revenues 5,257,245 5,490,707 5,767,513 276,806 4,692,489 1,075,024

Exhibit 16

Amounts in thousands of USD

26

City of Philadelphia

Schedule of Budgetary Actual and Estimated Revenues and Obligations

General Fund

For the Fiscal Year Ended June 30, 2022 (with comparative actual amounts for the Fiscal Year Ended June 30, 2021)

Final Budge

t

Budgeted Amount

s

to Actual

FY 2022 Positive FY 2021 Increase

Original Final Actual (Negative) Actual (Decrease)

Exhibit 16

Amounts in thousands of USD

Obligations

General Government

City Council 18,678 19,497 17,070 2,427 17,010 60

Mayor's Office:

Mayor's Office 6,714 6,906 6,333 573 6,409 (76)

Scholarships 100 205 200 5 268 (68)

Mural Arts Program 2,652 2,664 2,470 194 2,123 347

Labor Relations 3,314 3,547 2,700 847 2,378 322

Chief Administratvie Office 10,945 11,079 7,162 3,917 5,822 1,340

Community Schools & Pre-K 442 453 378 75 419 (41)

Community Services 1,509 1,509 1,509 - 45 1,464

Inspector General 1,607 1,647 1,515 132 1,369 146

Sustainability 1,575 1,593 1,549 44 1,082 467

Office of Information Technology 110,122 121,713 99,558 22,155 90,758 8,800

Office of Property Assessment 16,784 17,648 14,953 2,695 15,214 (261)

Law 18,947 22,076 21,424 652 16,220 5,204

Board of Ethics 975 999 859 140 818 41

City Planning Commission - - -

-

- -

Commission on Human Relations 2,388 2,538 2,313 225 2,285 28

Arts & Culture - - - - - -

Board of Revision of Taxes 1,053 1,085 1,041 44 1,050 (9)

Department of Planning & Development 17,074 17,464 13,401 4,063 14,706 (1,305)

Total General Government 214,879 232,623 194,435 38,188 177,976 16,459

Operation of Service Departments

Housing - - - - - -

Managing Director 177,989 176,617 132,468 44,149 114,084 18,384

Police 729,348 786,792 774,948 11,844 759,141 15,807

Streets 173,435 196,699 189,739 6,960 170,032 19,707

Fire 361,066 376,771 370,064 6,707 344,502 25,562

Public Health 163,004 166,304 153,934 12,370 156,193 (2,259)

Office-Behavioral Health/Mental Retardation 23,547 23,665 22,325 1,340 15,477 6,848

Parks and Recreation 62,565 68,916 66,049 2,867 52,623 13,426

Atwater Kent Museum - - - - - -

Public Property 220,147 224,228 218,817 5,411 197,866 20,951

Department of Human Services 178,274 183,646 172,562 11,084 154,211 18,351

Philadelphia Prisons 237,651 253,570 224,170 29,400 219,173 4,997

Office of Supportive Housing 55,321 56,311 55,281 1,030 44,782 10,499

Office of Fleet Management 55,093 59,964 57,722 2,242 55,269 2,453

Licenses and Inspections 38,934 41,507 38,135 3,372

37,335 800

Board of L & I Review 176 182 145 37 129 16

Board of Building Standards 82 85 77 8 85 (8)

Zoning Board of Adjustment - - - - - -

Records 3,913 4,171 4,056 115 3,672 384

Philadelphia Historical Commission - - - - -

Art Museum 2,040 2,040 2,040 - 2,040 -

Philadelphia Free Library 42,787 45,932 41,822 4,110 40,117 1,705

Total Operations of Service Departments 2,525,372 2,667,400 2,524,354 143,046 2,366,731 157,623

Financial Management

Office of Director of Finance 103,055 58,592 37,693 20,899 35,129 2,564

Department of Revenue 26,943 28,227 22,677 5,550 27,834 (5,157)

Sinking Fund Commission 297,228 297,228 284,469 12,759 273,785 10,684

Procurement 6,056 6,218 5,003 1,215 5,856 (853)

City Treasurer 4,741 4,801 2,617 2,184 1,715 902

Audit of City Operations 9,853 10,383 10,005 378 9,825 180

Total Financial Management 447,876 405,449 362,464 42,985 354,144 8,320

27

City of Philadelphia

Schedule of Budgetary Actual and Estimated Revenues and Obligations

General Fund

For the Fiscal Year Ended June 30, 2022 (with comparative actual amounts for the Fiscal Year Ended June 30, 2021)

Final Budge

t

Budgeted Amount

s

to Actual

FY 2022 Positive FY 2021 Increase

Original Final Actual (Negative) Actual (Decrease)

Exhibit 16

Amounts in thousands of USD

Obligations (Continued)

City-Wide Appropriations Under the Director of Finance

Fringe Benefits 1,438,593 1,686,521 1,686,521 - 1,264,673 421,848

Community College of Philadelphia 48,128 48,128 48,128 - 41,629 6,499

Hero Award 54 54 54 - - 54

Refunds 250 250 52 198 14 38

Indemnities 49,217 49,237 - 49,237 - -

Office of Risk Management 172 212 138 74 3,449 (3,311)

Witness Fees 4,005 3,855 3,861 (6) 56 3,805

Payments to Capital 4,500 4,500 153 4,347 - 153

Payments to Housing Trust 6,860 6,860 6,860 - 20,000 (13,140)

Payments to Budget Stabilization - - - - - -

Contribution to School District 255,953 255,953 255,953 - 252,579 3,374

Total City-Wide Under Director of Finance 1,807,732 2,055,570 2,001,720 53,850 1,582,400 419,320

Promotion and Public Relations

City Representativ

e

- - - - - -

Commerce 35,655 35,752 33,995 1,757 21,290 12,705

Total Promotion and Public Relations 35,655 35,752 33,995 1,757 21,290 12,705

Personnel

Civic Service Commission 25,208 5,842 171 5,671 170 1

Personnel Director 6,471 6,769 6,132 637 5,718 414

Total Personnel 31,679 12,611 6,303 6,308 5,888 415

Administration of Justice

Register of Wills 4,281 4,543 4,519 24 4,479 40

District Attorney 40,432 43,777 43,732 45 42,027 1,705

Sheriff 26,796 28,781 28,897 (116) 27,637 1,260

First Judicial District 114,832 111,435 116,997 (5,562) 114,138 2,859

Total Administration of Justice 186,341 188,536 194,145 (5,609) 188,281 5,864

City-Wide Appropriations Under the First Judicial District

Juror Fees 1,366 606 606 - 174 432

Conduct of Elections

City Commissioners 18,046 22,799 20,505 2,294 20,871 (366)

Total Obligations 5,268,946 5,621,346 5,338,527 282,819 4,717,755 620,772

Operating Surplus (Deficit) for the Year (11,701) (130,639) 428,986 559,625 (25,266) 454,252

28

City of Philadelphia

Bud

g

etar

y

Com

p

arison Schedule

Water O

p

eratin

g

Fund

For the Fiscal Year Ended June 30, 2022

Final Budget

Budgeted Amounts to Actual

Positive

Original

Final Actual (Negative)

Revenues

Locally Generated Non-Tax Revenue 695,087 739,308 722,532 (16,776)

Revenue from Other Governments 670 464 464 -

Revenue from Other Funds 95,798 72,616 30,585 (42,031)

Total Revenues 791,555 812,388 753,581 (58,807)

Expenditures and Encumbrances

Personal Services 165,871 174,120 158,297 15,823

Pension Contributions 61,947 67,511 67,512 (1)

Other Employee Benefits 65,031 63,161 63,161 -

Sub-Total Employee Compensation 292,849 304,792 288,970 15,822

Purchase of Services 217,237 196,913 184,643 12,270

Materials and Supplies 55,293 57,941 52,763 5,178

Equipment 8,094 12,847 7,994 4,853

Contributions, Indemnities and Taxes 6,510 6,510 6,369 141

Debt Service 201,542 201,543 176,993 24,550

Payments to Other Funds 50,030 72,654 72,654 -

Total Expenditures and Encumbrances 831,555 853,200 790,386 62,814

Operating Surplus (Deficit) for the Year (40,000) (40,812) (36,805) 4,007

Fund Balance Available

for Appropriation, July 1, 2021 - - - -

Operations in Respect to Prior Fiscal Years

Commitments Cancelled - Net 40,000 40,000 36,805 (3,195)

Adjusted Fund Balance, July 1, 2021 40,000 40,000 36,805 (3,195)

Fund Balance Available

for Appropriation, June 30, 2022 - (812) - 812

Amounts in thousands of USD

Exhibit 17

29

City of Philadelphia

Schedule of Budgetary Actual and Estimated Revenues and Obligations

Water Operating Fund

For the Fiscal Year Ended June 30, 2022 (with comparative actual amounts for the Fiscal Year Ended June 30, 2021)

Final Budget

Budgeted Amounts to Actual

FY 2022 Positive FY 2021 Increase

Original

Final Actual (Negative) Actual (Decrease)

Revenue

Locally Generated Non-Tax Revenue

Sales and Charges - Current 588,288 623,794 610,011 (13,783) 587,898 22,113

Sales and Charges - Prior Years 40,750 40,750 51,184 10,434 44,655 6,529

Fire Service Connections 3,558 3,558 3,661 103 3,937 (276)

Surcharges 4,647 4,647 6,043 1,396 5,024 1,019

Fines and Penalties 281 421 589 168 352 237

Miscellaneous Charges 2,478 3,186 3,367 181 2,634 733

Charges to Other Municipalities 40,050 38,500 36,339 (2,161) 39,102 (2,763)

Licenses and Permits 6,598 6,660 7,230 570 7,987 (757)

Interest Income 3,100 1,000 (832) (1,832) (82) (750)

Fleet Management - Sale of Vehicles & Equipment 20 1,015 458 (557) 107 351

Contributions from Sinking Fund Reserve - 10,000 - (10,000) 2,079 (2,079)

Reimbursement of Expenditures 40 500 112 (388) 805 (693)

Repair Loan Program 4,317 4,317 4,370 53 4,939 (569)

Other 960 960 - (960) 4 (4)

Total Locally Generated Non-Tax Revenue 695,087 739,308 722,532 (16,776)

699,441 23,091

Revenue from Other Government

s

State 670 464 464 - 669 (205)

Federal - - - - - -

Total Revenue from Other Governments 670 464 464 - 669 (205)

Revenue from Other Funds

95,798 72,616 30,585 (42,031) 57,341 (26,756)

Total Revenues 791,555 812,388 753,581 (58,807) 757,451 (3,870)

Obligation

s

Mayor's Office of Information Services 32,225 32,525 24,329 8,196 23,630 699

Managing Director's Office 139 139 - 139 139 (139)

Public Property 4,495 4,495 4,490 5 4,369 121

Office of Fleet Management 8,899 9,058 7,763 1,295 6,677 1,086

Water Department 429,478 452,094 430,982 21,112 398,749 32,233

Office of the Director of Finance - - - - - -

City-Wide Appropriation Under

the Director of Finance:

Pension Contributions 61,907 67,511 67,511 - 85,716 (18,205)

Other Employee Benefits 65,071 63,161 63,161 - 58,251 4,910

Contributions, Indemnities and Taxes 6,000 131 - 131 - -

Advances, Subsidies, Miscellaneous - - - - - -

Department of Revenue 16,836 17,387 10,613 6,774 14,045 (3,432)

Sinking Fund Commission 201,542 201,542 176,993 24,549 186,312 (9,319)

Procurement Department 107 115 114 1 101 13

Law 3,933 4,117 3,924 193 3,288 636

Mayor's Office of Sustainability 133 133 133 -

94 39

Water, Sewer and Stormwater Rate Board 790 792 373 419 73 300

Total Obligations 831,555 853,200 790,386 62,814 781,444 8,942

Operating Surplus (Deficit) for the Yea

r

(40,000) (40,812) (36,805) 4,007 (23,993) (12,812)

Exhibit 18

Amounts in thousands of USD

30

City of Philadelphia

Bud

g

etar

y

Com

p

arison Schedule

Water Residual Fund

For the Fiscal Year Ended June 30, 2022

Final Budget

Budgeted Amounts to Actual

Positive

Original

Final Actual (Negative)

Revenues

Locally Generated Non-Tax Revenue - - (213) (213)

Revenue from Other Funds 28,905 28,905 22,569 (6,336)

Total Revenues 28,905 28,905 22,356 (6,549)

Expenditures and Encumbrances

Payments to Other Funds 16,994 22,569 22,569 -

Advances, Subsidies, Miscellaneous 16,000 10,425 - 10,425

Total Expenditures and Encumbrances 32,994 32,994 22,569 10,425

Operating Surplus (Deficit) for the Year (4,089) (4,089) (213) 3,876

Fund Balance Available

for Appropriation, July 1, 2021 4,089 16,321 16,321 -

Fund Balance Available

for Appropriation, June 30, 2022 - 12,232 16,108 3,876

Exhibit 19

Amounts in thousands of USD

31

City of Philadelphia

Bud

g

etar

y

Com

p

arison Schedule

Count

y

Li

q

uid Fuels Tax Fund

For the Fiscal Year Ended June 30, 2022

Final Budget

Budgeted Amounts to Actual

Positive

Original

Final Actual (Negative)

Revenues

Revenue from Other Governments 3,500 3,500 14,851 11,351

Total Revenues 3,500 3,500 14,851 11,351

Expenditures and Encumbrances

Personal Services 3,734 3,734 2,710 1,024

Purchase of Services 6,920 5,064 4,421 643

Materials and Supplies 200 2,056 1,305 751

Payments to Other Funds 19 19 14 5

Total Expenditures and Encumbrances 10,873 10,873 8,450 2,423

Operating Surplus (Deficit) for the Year (7,373) (7,373) 6,401 13,774

Fund Balance Available

for Appropriation, July 1, 2021 7,490 9,711 9,711 -

Operations in Respect to Prior Fiscal Years

Commitments Cancelled - Net 25 25 351 326

Adjusted Fund Balance, July 1, 2021 7,515 9,736 10,062 326

Fund Balance Available

for Appropriation, June 30, 2022 142 2,363 16,463 14,100

Exhibit 20

Amounts in thousands of USD

32

City of Philadelphia

Bud

g

etar

y

Com

p

arison Schedule

S

p

ecial Gasoline Tax Fund

For the Fiscal Year Ended June 30, 2022

Final Budget

Budgeted Amounts to Actual

Positive

Original

Final Actual (Negative)

Revenues

Locally Generated Non-Tax Revenue - 43 52 9

Revenue from Other Governments 28,000 33,476 34,973 1,497

Total Revenues 28,000 33,519 35,025 1,506

Expenditures and Encumbrances

Personal Services 11,294 11,294 10,511 783

Pension Contributions 500 500 500 -

Other Employee Benefits 500 500 500 -

Sub-Total Employee Compensation 12,294 12,294 11,511 783

Purchase of Services 16,689 17,389 15,020 2,369

Materials and Supplies 5,463 6,263 4,540 1,723

Equipment 6,424 4,924 1,495 3,429

Payments to Other Funds 30 30 30 -

Total Expenditures and Encumbrances 40,900 40,900 32,596 8,304

Operating Surplus (Deficit) for the Year (12,900) (7,381) 2,429 9,810

Fund Balance Available

for Appropriation, July 1, 2021 33,992 45,143 45,143 -

Operations in Respect to Prior Fiscal Years

Commitments Cancelled - Net 500 500 1,916 1,416

Adjusted Fund Balance, July 1, 2021 34,492 45,643 47,059 1,416

Fund Balance Available

for Appropriation, June 30, 2022 21,592 38,262 49,488 11,226

Exhibit 21

Amounts in thousands of USD

33

Cit

y

of Philadel

p

hia

Required Supplementary Information

Budgetary Comparison Schedule

HealthChoices Behavioral Health Fund

For the Fiscal Year Ended June 30, 2022

Final Budget

Budgeted Amounts to Actual

Positive

Original

Final

A

ctual* (Negative)

Revenues

Locally Generated Non-Tax Revenue 2,000 219 (639) (858)

Revenue from Other Governments 1,308,000 1,309,781 1,281,180 (28,601)

Total Revenues 1,310,000 1,310,000 1,280,541 (29,459)

Other Sources

Decrease in Unreimbursed Committments - - (45,145) (45,145)

Total Revenues and Other Sources 1,310,000 1,310,000 1,235,396 (74,604)

Expenditures and Encumbrances

Personal Services 1,252 1,252 278 974

Purchase of Services 1,308,648 1,308,648 1,291,143 17,505

Payments to Other Funds 100 100 1 99

Total Expenditures and Encumbrances 1,310,000 1,310,000 1,291,422 18,578

Operating Surplus (Deficit) for the Yea

r

- - (56,026) (56,026)

Fund Balance Available

for Appropriation, July 1, 2021 - 172,630 172,630 -

Operations in Respect to Prior Fiscal Years

Commitments Cancelled - Net - (172,630) 90,772 263,402

Adjusted Fund Balance, July 1, 2021 - - 263,402 263,402

Fund Balance Available

for Appropriation, June 30, 2022 - - 207,376 207,376

* Refer to the notes to required supplementary information.

Exhibit 22

Amounts in thousands of USD

34

City of Philadelphia

Bud

g

etar

y

Com

p

arison Schedule

Hotel Room Rental Tax Fund

For the Fiscal Year Ended June 30, 2022

Final Budget

Budgeted Amounts to Actual

Positive

Original

Final Actual (Negative)

Revenues

Taxes 50,000 50,000 59,035 9,035

Total Revenues 50,000 50,000 59,035 9,035

Expenditures and Encumbrances

Contributions, Indemnities and Taxes 50,000 50,000 50,000 -

Total Expenditures and Encumbrances 50,000 50,000 50,000 -

Operating Surplus (Deficit) for the Year - - 9,035 9,035

Fund Balance Available

for Appropriation, July 1, 2021 - (29,009) (29,009) -

Operations in Respect to Prior Fiscal Years

Commitments Cancelled - Net - 29,009 - (29,009)

Adjusted Fund Balance, July 1, 2021 - - (29,009) (29,009)

Fund Balance Available

for Appropriation, June 30, 2022 - - (19,974) (19,974)

Exhibit 23

Amounts in thousands of USD

35

Cit

y

of Philadel

p

hia

Required Supplementary Information

Budgetary Comparison Schedule

Grants Revenue Fund

For the Fiscal Year Ended June 30, 2022

Final Budget

Budgeted Amounts to Actual

Positive

Original

Final Actual* (Negative)

Revenues

Locally Generated Non-Tax Revenue 93,086 83,447 55,135 (28,312)

Revenue from Other Governments 3,496,909 1,977,052 1,047,355 (929,697)

Total Revenues 3,589,995 2,060,499 1,102,490 (958,009)

Other Sources

Increase in Unreimbursed Committments - - 15,491 15,491

Increase in Financed Reserves - - (1,213) (1,213)

Total Revenues and Other Sources 3,589,995 2,060,499 1,116,768 (943,731)

Expenditures and Encumbrances

Personal Services 265,602 224,205 160,192 64,013

Pension Contributions 46,064 21,459 9,552 11,907

Other Employee Benefits 51,779 74,717 36,406 38,311

Sub-Total Employee Compensation 363,445 320,381 206,150 114,231

Purchase of Services 1,464,165 1,495,607 1,092,523 403,084

Materials and Supplies 74,326 60,346 17,275 43,071

Equipment 52,696 37,314 4,885 32,429

Contributions, Indemnities and Taxes 1 1 23,445 (23,444)

Payments to Other Funds 635,361 676,711 341,733 334,978

Advances, Subsidies, Miscellaneous 1,000,001 652,594 - 652,594

Total Expenditures and Encumbrances 3,589,995 3,242,954 1,686,011 1,556,943

Operating Surplus (Deficit) for the Year - (1,182,455) (569,243) 613,212

Fund Balance Available

for Appropriation, July 1, 2021 - (357,044) (357,044) -

Operations in Respect to Prior Fiscal Years

Commitments Cancelled - Net - - 139,806 139,806

Revenue Adjustments - Net - - (838) (838)

Prior Period Adjustments - 357,044 (9,709) (366,753)

Adjusted Fund Balance, July 1, 2021 - - (227,785) (227,785)

Fund Balance Available

for Appropriation, June 30, 2022 - (1,182,455) (797,028) 385,427

* Refer to the notes to required supplementary information.

Exhibit 24

Amounts in thousands of USD

36

City of Philadelphia

Bud

g

etar

y

Com

p

arison Schedule

Aviation O

p

eratin

g

Fund

For the Fiscal Year Ended June 30, 2022

Final Budget

Budgeted Amounts to Actual

Positive

Original

Final Actual (Negative)

Revenues

Locally Generated Non-Tax Revenue 282,448 277,497 353,886 76,389

Revenue from Other Governments 95,346 95,346 54,081 (41,265)

Revenue from Other Funds 1,300 1,300 1,357 57

Total Revenues 379,094 374,143 409,324 35,181

Expenditures and Encumbrances

Personal Services 73,464 76,642 77,142 (500)

Pension Contributions 29,720 29,720 24,965 4,755

Other Employee Benefits 27,135 27,426 22,342 5,084

Sub-Total Employee Compensation 130,319 133,788 124,449 9,339

Purchase of Services 99,963 98,278 97,660 618

Materials and Supplies 5,828 5,780 5,574 206

Equipment 3,075 2,579 2,579 -

Contributions, Indemnities and Taxes 8,812 10,392 4,892 5,500

Debt Service 132,004 132,004 114,814 17,190

Payments to Other Funds 11,019 13,038 6,407 6,631

Total Expenditures and Encumbrances 391,020 395,859 356,375 39,484

Operating Surplus (Deficit) for the Year (11,926) (21,716) 52,949 74,665

Fund Balance Available

for Appropriation, July 1, 2021 179,649 265,704 265,704 -

Operations in Respect to Prior Fiscal Years

Commitments Cancelled - Net 15,000 15,000 12,137 (2,863)

Adjusted Fund Balance, July 1, 2021 194,649 280,704 277,841 (2,863)

Fund Balance Available

for Appropriation, June 30, 2022 182,723 258,988 330,790 71,802

Exhibit 25

Amounts in thousands of USD

37

City of Philadelphia

Schedule of Budgetary Actual and Estimated Revenues and Obligations

Aviation Operating Fund

For the Fiscal Year Ended June 30, 2022 (with comparative actual amounts for the Fiscal Year Ended June 30, 2021)

Final Budget

Budgeted Amounts to Actual

FY 2022 Positive FY 2021 Increase

Original

Final Actual (Negative) Actual (Decrease)

Revenu

e

Locally Generated Non-Tax Revenu

e

Concessions 25,364 25,364 37,478 12,114 19,207 18,271

Space Rentals 130,977 130,976 140,251 9,275 160,616 (20,365)

Landing Fees 60,999 61,000 85,676 24,676 67,837 17,839

Parking 845 845 21,851 21,006 689 21,162

Car Rentals 10,000 10,000 21,542 11,542 11,496 10,046

Payment in Aid - Terminal Building - - - - -

Interest Earnings 5,000 - (1,307) (1,307) 470 (1,777)

Sale of Utilities 2,580 2,580 2,811 231 2,153 658

Passenger Facility Charge 31,200 31,200 18,350 (12,850) 49,938 (31,588)

Overseas Terminal Facility Charges 2 2 33 31 102 (69)

International Terminal Charge 8,400 8,400 22,365 13,965 8,033 14,332

Other 7,081 7,130 4,836 (2,294) 6,618 (1,782)

Total Locally Generated Non-Tax Revenue 282,448 277,497 353,886 76,389 327,159 26,727

Revenue from Other Government

s

State - - - - - -

Federal 95,346 95,346 54,081 (41,265) 65,093 (11,012)

Total Revenue from Other Governments 95,346 95,346 54,081 (41,265) 65,093 (11,012)

Revenue from Other Fund

s

1,300 1,300 1,357 57 1,478 (121)

Total Revenue 379,094 374,143 409,324 35,181 393,730 15,594

Obligations

Mayor's Office of Information Services 2,739 2,761 1,780 981 1,603 177

Managing Director - - - - - -

Police 14,827 18,157 18,154 3 15,601 2,553

Fire 8,955 8,959 9,740 (781) 8,934 806

Public Property 14,000 14,000 14,000 - 17,000 (3,000)

Office of Fleet Management 3,586 3,666 3,193 473 2,572 621

Director of Finance - - - - - -

City-Wide Appropriation Under -

the Director of Finance:

Pension Contributions 29,704 29,705 24,966 4,739 36,597 (11,631)

Other Employee Benefits 27,150 27,441 22,342 5,099 22,200 142

Purchase of Services 3,246 3,646 3,631 15 3,038 593

Contributions, Indemnities and Taxes 2,512 1,500 - 1,500 - -

Advances, Subsidies, Miscellaneous - - - - - -

Sinking Fund Commission 132,005 132,005 114,814 17,191 91,006 23,808

Procurement - - - - - -

Commerce 150,600 152,272

142,104 10,168 146,785 (4,681)

Law 1,585

1,636 1,540 96 1,480 60

Mayor's Office of Transportation - - - - - -

Mayor's Office of Sustainability 111 111 111 - 88 23

Total Obligations 391,020 395,859 356,375 39,484 346,904 9,471

Operating Surplus (Deficit) for the Yea

r

(11,926) (21,716) 52,949 74,665 46,826 6,123

Exhibit 26

Amounts in thousands of USD

38

City of Philadelphia

Bud

g

etar

y

Com

p

arison Schedule

Communit

y

Develo

p

ment Fund

For the Fiscal Year Ended June 30, 2022

Final Budget

Budgeted Amounts to Actual

Positive

Original

Final Actual (Negative)

Revenues

Locally Generated Non-Tax Revenue 500 500 4 (496)

Revenue from Other Governments 128,452 108,452 61,572 (46,880)

Total Revenues 128,952 108,952 61,576 (47,376)

Other Sources

Increase in Financed Reserves - - (16,019) (16,019)

Total Revenues and Other Sources 128,952 108,952 45,557 (63,395)

Expenditures and Encumbrances

Personal Services 7,549 7,506 5,156 2,350

Pension Contributions 3,603 3,329 2,367 962

Other Employee Benefits 1,976 2,294 1,673 621

Sub-Total Employee Compensation 13,128 13,129 9,196 3,933

Purchase of Services 95,543 95,543 58,020 37,523

Materials and Supplies 256 200 44 156

Equipment - 55 - 55

Payments to Other Funds 25 25 25 -

Advances, Subsidies, Miscellaneous 20,000 20,000 - 20,000

Total Expenditures and Encumbrances 128,952 128,952 67,285 61,667

Operating Surplus (Deficit) for the Year - (20,000) (21,728) (1,728)

Fund Balance Available

for Appropriation, July 1, 2021 - (9,967) (9,967) -

Operations in Respect to Prior Fiscal Years

Commitments Cancelled - Net - - 12,372 12,372

Prior Period Adjustments - 9,967 - (9,967)

Adjusted Fund Balance, July 1, 2021 - - 2,405 2,405

Fund Balance Available

for Appropriation, June 30, 2022 - (20,000) (19,323) 677

Exhibit 27

Amounts in thousands of USD

39

City of Philadelphia

Bud

g

etar

y

Com

p

arison Schedule

Car Rental Tax Fund

For the Fiscal Year Ended June 30, 2022

Final Budget

Budgeted Amounts to Actual

Positive

Original

Final Actual (Negative)

Revenues

Taxes 5,348 6,315 6,850 535

Locally Generated Non-Tax Revenue 25 25 11 (14)

Total Revenues 5,373 6,340 6,861 521

Expenditures and Encumbrances

Purchase of Services 7,000 7,000 7,000 (0)

Total Expenditures and Encumbrances 7,000 7,000 7,000 (0)

Operating Surplus (Deficit) for the Year (1,627) (660) (139) 521

Fund Balance Available

for Appropriation, July 1, 2021 8,205 8,397 8,397 -

Fund Balance Available

for Appropriation, June 30, 2022 6,578 7,737 8,258 521

Exhibit 28

Amounts in thousands of USD

40

City of Philadelphia

Bud

g

etar

y

Com

p

arison Schedule

Housin

g

Trust Fund

For the Fiscal Year Ended June 30, 2022

Final Budget

Budgeted Amounts to Actual

Positive

Original

Final Actual (Negative)

Revenues

Locally Generated Non-Tax Revenue 17,184 16,434 19,184 2,750

Revenue from Other Funds 6,860 6,860 6,860 -

Total Revenues 24,044 23,294 26,044 2,750

Expenditures and Encumbrances

Personal Services 2,250 2,250 979 1,271

Purchase of Services 75,794 75,794 33,775 42,019

Materials and Supplies - - - -

Equipment 150 150 64 86

Total Expenditures and Encumbrances 78,194 78,194 34,818 43,376

Operating Surplus (Deficit) for the Year (54,150) (54,900) (8,774) 46,126

Fund Balance Available

for Appropriation, July 1, 2021 26,306 27,598 27,598 -

Operations in Respect to Prior Fiscal Years

Commitments Cancelled - Net 27,844 27,844 13,626 (14,218)

Revenue Adjustments - Net - - - -

Prior Period Adjustments - - - -

Other Adjustments - - - -

Adjusted Fund Balance, July 1, 2021 54,150 55,442 41,224 (14,218)

Fund Balance Available

for Appropriation, June 30, 2022 - 542 32,450 31,908

Exhibit 29

Amounts in thousands of USD

41

City of Philadelphia

Bud

g

etar

y

Com

p

arison Schedule

General Ca

p

ital Im

p

rovement Funds

For the Fiscal Year Ended June 30, 2022

Final Budget

Budgeted Amounts to Actual

Positive

Original

Final Actual (Negative)

Revenues

Locally Generated Non-Tax Revenue 677,286 674,786 100 (674,686)

Revenue from Other Governments 967,720 967,720 35,881 (931,839)

Revenue from Other Funds 187,731 189,871 13,090 (176,781)

Total Revenues 1,832,737 1,832,377 49,071 (1,783,306)

Other Sources (Uses)

Proceeds from Bond Sales - - 366,001 366,001

Total Revenues and Other Sources 1,832,737 1,832,377 415,072 (1,417,305)

Expenditures and Encumbrances

Capital Outlay 1,832,737 1,832,377 279,636 1,552,741

Operating Surplus (Deficit) for the Year - - 135,436 135,436

Fund Balance Available

for Appropriation, July 1, 2021 - - (126,562) (126,562)

Operations in Respect to Prior Fiscal Years

Commitments Cancelled - Net - - 1,434 1,434

Adjusted Fund Balance, July 1, 2021 - - (125,128) (125,128)

Fund Balance Available

for Appropriation, June 30, 2022 - - 10,308 10,308

Exhibit 30

Amounts in thousands of USD

42

City of Philadelphia

Bud

g

etar

y

Com

p

arison Schedule

Acute Care Hos

p

ital Assessment Fund

For the Fiscal Year Ended June 30, 2022

Final Budget

Budgeted Amounts to Actual

Positive

Original

Final Actual (Negative)

Revenues

Tax Revenue 249,661 250,000 189,587 (60,413)

Total Revenues 249,661 250,000 189,587 (60,413)

Other Sources

Decrease in Unreimbursed Committments - - (532) (532)

Total Revenues and Other Sources 249,661 250,000 189,055 (60,945)

Expenditures and Encumbrances

Personal Services 9,970 9,721 4,866 4,855

Pension Contributions 42 - - -

Other Employee Benefits 227 269 1 268

Sub-Total Employee Compensation 10,239 9,990 4,867 5,123

Purchase of Services 306,927 306,926 181,888 125,038

Materials and Supplies 1,165 505 5 500

Equipment - 660 45 615

Payments to Other Funds 4,500 4,500 4,500 -

Total Expenditures and Encumbrances 322,831 322,581 191,305 131,276

Operating Surplus (Deficit) for the Year (73,170) (72,581) (2,250) 70,331

Fund Balance Available

for Appropriation, July 1, 2021 71,170 23,314 23,314 -

Operations in Respect to Prior Fiscal Years

Commitments Cancelled - Net 2,000 2,000 984 (1,016)

Adjusted Fund Balance, July 1, 2021 73,170 25,314 24,298 (1,016)

Fund Balance Available

for Appropriation, June 30, 2022 - (47,267) 22,048 69,315

Exhibit 31

Amounts in thousands of USD

43

City of Philadelphia

Budgetary Comparison Schedule

Budget Stabilization Fund

For the Fiscal Year Ended June 30, 2022

Final Budget

Budgeted Amounts to Actual

Positive

Original

Final Actual (Negative)

Revenues

Tax Revenue -

Locally Generated Non-Tax Revenue - - - -

Revenue from Other Governments - - - -

Revenue from Other Funds - - - -

Total Revenues - - - -

Expenditures and Encumbrances

Personal Services - - - -

Pension Contributions - - - -

Other Employee Benefits - - - -

Sub-Total Employee Compensation - - - -

Purchase of Services - - - -

Materials and Supplies - - - -

Equipment - - - -

Contributions, Indemnities and Taxes - - - -

Debt Service - Principal - - - -

Debt Service - Interest - - - -

Short-Term Interest - - - -

Payments to Other Funds 1 1 - 1

Advances, Subsidies, Miscellaneous - - - -

Total Expenditures and Encumbrances 1 1 - 1

Operating Surplus (Deficit) for the Year (1) (1) - 1

Fund Balance Available

for Appropriation, July 1, 2021 - - - -

Operations in Respect to Prior Fiscal Years

Commitments Cancelled - Net - - - -

Revenue Adjustments - Net - - - -

Prior Period Adjustments - - - -

Other Adjustments - - - -

Adjusted Fund Balance, July 1, 2021 - - - -

Fund Balance Available

for Appropriation, June 30, 2022 (1) (1) - 1

Exhibit 32

Amounts in thousands of USD

44

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of the City of Philadelphia have been prepared in conformity with generally

accepted accounting principles (GAAP) as applied to governmental units. The Governmental

Accounting Standards Board (GASB) is the accepted standard setting body for establishing

governmental accounting and financial reporting principles. The more significant of the City's

accounting policies are described below.

1. REPORTING ENTITY

The City of Philadelphia was founded in 1682 and was merged with the county in 1854. Since

1951 the City has been governed largely under the Philadelphia Home Rule Charter. However,

in some matters, including the issuance of short-term and long-term debt, the City is governed

by the laws of the Commonwealth of Pennsylvania.

As required by GAAP, the financial statements of the City of Philadelphia include those of the

primary government and its component units. The component units discussed below are

included in the City's reporting entity because of the significance of their operational or financial

relationships with the City. The financial statements of these component units have been

included in the City's reporting entity either as blended component units or as discretely

presented component units. The criteria to determine an entity as a component unit is

established by Governmental Accounting Standards Board Statement (GASBS) No. 14 which

has been amended by GASB Statements No. 39, No. 61 No. 80, No. 84, No. 85, No. 90, and

No. 97. Certain other organizations also met the criteria for inclusion; however, they are not

included in the City’s financial statements because they are not significant to a fair representation

of the City’s reporting entity. Individual financial statements can be obtained directly from their

administrative offices by writing to the addresses provided.

As used, both on the face of the financial statements and in the footnotes, the term “Primary

Government” includes both City funds and Blended Component Units while the term

“Component Units” includes only Discretely Presented Component Units. A Related

Organization is an entity which the City appoints board members but for which the city has no

significant financial responsibility.

A. BLENDED COMPONENT UNITS

Pennsylvania Intergovernmental Cooperation Authority (PICA) – 1500 Walnut St.,

Philadelphia, PA 19102

PICA was established by act of the Commonwealth of Pennsylvania to provide financial

assistance to cities of the first class and is governed by a five-member board appointed by

the Commonwealth. Currently, the City of Philadelphia is the only city of the first class. The

activities of PICA are reflected in two of the governmental fund types (Special Revenue and

Debt Service).

Philadelphia Municipal Authority (PMA) – 1515 Arch St., Philadelphia, PA 19102

PMA is governed by a five-member board appointed by the City and was established to

issue tax exempt bonds for the acquisition and use of certain equipment and facilities for

the City. The activities of PMA are reflected in three of the governmental fund types (Special

Revenue, Debt Service and Capital Improvement).

B. DISCRETELY PRESENTED COMPONENT UNITS

The component unit columns in the applicable combined financial statements include the

combined financial data for the organizations discussed below. They are reported in a

separate column to emphasize that they are legally separate from the City. However, in

order to retain their identity, applicable combining statements have been included as part of

this report.

45

Philadelphia Gas Works (PGW) – 800 W. Montgomery Ave., Philadelphia, PA 19122

PGW was established by the City to provide gas service to residential and commercial

customers within the City of Philadelphia. The City appoints a voting majority of PGW’s

board and has the ability to modify or approve their budget.

Philadelphia Housing Authority (PHA) – 12 South 23RD Street, Philadelphia, PA 19103

PHA was established to provide low cost housing and other social services to the residents

of the City. PHA is governed by a nine-member board with all members appointed by the

City. In addition, the Mayor of Philadelphia has the ability to remove a majority of PHA’s

board without cause during any calendar year. Since the City appoints a voting majority of

PHA’s board and can impose its will, due to the Mayor’s ability to remove a majority of the

board at will; PHA meets the criteria for inclusion as a discretely presented component unit

in accordance with GASB.

Philadelphia Redevelopment Authority (PRA) – 1234 Market St., Philadelphia, PA

19107

PRA was established to rehabilitate blighted sections of the City. It is governed by a five-

member board appointed by the City and must submit its budgets to the City for review and

approval. PRA’s reported amounts include the financial activity of the Head House Retail

Associates, L.P., which is PRA’s discretely presented component unit whose fiscal year

ended December 31, 2019.

Philadelphia Parking Authority (PPA) – 3101 Market St., Philadelphia, PA 19104

PPA was established by the City to coordinate a system of parking facilities and on-street

parking on behalf of the City. Its fiscal year ends on March 31. The City has guaranteed

debt payments for PPA. A voting majority of PPA’s governing board is not appointed by the

City, however the significance of the City’s relationship with PPA is such that exclusion from

the City’s financial report would be misleading.

School District of Philadelphia (SDP) – 440 N. Broad St., Philadelphia, PA 19130

SDP was established by the Educational Supplement to the Philadelphia Home Rule

Charter to provide free public education for the City's residents. As of July 1, 2018, the SDP

is governed by a nine-member board appointed by the Mayor and approved by City Council.

Since the Mayor appoints the governing board and there exist a financial benefit/burden

relationship between the SDP and the City; the SDP meets the criteria for inclusion as a

discretely presented component unit in accordance with GASB.

Community College of Philadelphia (CCP) – 1700 Spring Garden St., Philadelphia, PA

19130

CCP was established by the City to provide two-year post-secondary education programs

for its residents. It is governed by a Board appointed by the City and receives substantial

subsidies from the City. CCP’s reported amounts include the financial activity of the

Community College of Philadelphia Foundation and CCP Development, LLC, which are

discretely presented component unit of CCP. Since the City appoints the governing board

and there exists a financial benefit/burden relationship between the CCP and the City; the

CCP meets the criteria for inclusion as a discretely presented component unit in accordance

with GASB.

Community Behavioral Health (CBH) – 801 Market St., Philadelphia, PA 19107

CBH is a not-for-profit organization established by the City’s Department of Public Health to

provide for and administer all behavioral health services required by the Commonwealth of

Pennsylvania. Its board is made up of City officials and City appointees. Any decrease in

funding would present a financial burden to the City.

46

Philadelphia Authority for Industrial Development (PAID) – 2600 Centre Sq. West,

Philadelphia, PA 19102

PAID was formed under the Industrial Development Authority Law to issue debt to finance

eligible industrial and commercial development projects. PAID is the delegate agency

responsible for administration of certain state grants and acts in the City’s behalf on major

development projects in the City. The City appoints a voting majority of PAID’s board and

is responsible for the debt service that PAID issues on the City’s behalf.

2. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS

The City’s government wide financial statements (i.e. the Statement of Net Position and the

Statement of Activities) report information on all of the non-fiduciary activities of the primary

government and its component units. Governmental activities which are normally supported by

taxes and intergovernmental revenues are reported separately from business type activities,

which rely to a significant extent on fees and charges for support. Likewise, the primary

government is reported separately from certain legally separate component units for which the

primary government is financially accountable. Interfund activity and balances have been

eliminated from the statements to avoid duplication.

The Statement of Activities demonstrates the degree to which the direct expenses of a given

program are offset by program revenues. Direct expenses are those that are clearly identifiable

with a specific program. Program revenues include: (1) charges to customers or applicants who

purchase, use or directly benefit from services or privileges provided by a given program and (2)

grants and contributions that are restricted to meeting operational or capital requirements of a

program. Taxes and other items not properly included among program revenues are reported

instead as general revenues.

Separate fund financial statements are provided for governmental funds, proprietary funds, and

fiduciary funds, even though the latter are excluded from the government wide financial

statements. Major individual governmental funds and major individual enterprise funds are

reported as separate columns in the fund financial statements.

3. BASIS OF ACCOUNTING, MEASUREMENT FOCUS AND FINANCIAL STATEMENTS

A. PRIMARY GOVERNMENT

The government wide financial statements are reported using the economic resources

measurement focus and the accrual basis of accounting, as are the proprietary fund and

fiduciary fund financial statements. Revenues are recorded when earned and expenses are

recorded when a liability is incurred regardless of the timing of related cash flows. Real

estate taxes are recognized as revenues in the year for which they are levied. Derived tax

revenues such as wage, business income and receipts, and net profits and earnings taxes

are recognized when the underlying exchange transaction has taken place. Grant and

similar items are recognized as revenue as soon as all eligibility requirements imposed by

the provider have been met.

Governmental fund financial statements are reported using the current financial resources

measurement focus and the modified accrual basis of accounting. Revenues are recognized

as soon as they are both measurable and available. Revenues are considered to be

available when they are collectible within the current period or soon enough thereafter to

pay liabilities of the current period. For this purpose, the City considers revenues to be

available if they are collected within 60 days of the end of the current fiscal period.

Expenditures are generally recorded when a liability is incurred as under accrual

accounting. Debt service expenditures, as well as expenditures related to compensated

absences and claims and judgments, are recorded only when payment is due. However,

those expenditures may be accrued if they are to be liquidated with available resources.

Imposed non-exchange revenues such as real estate taxes are recognized when the

enforceable legal claim arises, and the resources are available. Derived tax revenues, such

as wage, business income and receipts tax, net profits and earnings taxes, are recognized

when the underlying exchange transaction has occurred, and the resources are available.

Grant revenues are recognized when all the applicable eligibility requirements have been

47

met and the resources are available. All other revenue items are considered to be

measurable and available only when cash is received by the City.

Generally, the effect of interfund activity has been eliminated from the government wide

financial statements. Exceptions to this general rule are charges between the City’s water

and sewer function and various other programs of the City. Elimination of these charges

would distort the direct costs and program revenues reported for the various programs

concerned.

When both restricted and unrestricted resources are available for use, it is the City’s policy

to use restricted resources first, then unrestricted resources as they are needed.

Amounts reported as program revenue include: (1) charges to customers or applicants for

goods received, services rendered or privileges provided, (2) operating grants and

contributions, and (3) capital grants and contributions. Internally dedicated resources are

reported as general revenues rather than as program specific revenues. Accordingly,

general revenues include all taxes.

The City reports the following major governmental funds:

• The General Fund is the City’s primary operating fund. It accounts for all financial

resources of the general government, except those required to be accounted for

in other funds.

• The Health Choices Behavioral Health Fund accounts for resources received from

the Commonwealth of Pennsylvania. These resources are restricted to providing

managed behavioral health care to Philadelphia residents.

• The Grants Revenue Fund accounts for the resources received from various

federal, state, and private grantor agencies. The resources are restricted to

accomplishing the various objectives of the grantor agencies.

Additionally, the City reports on Permanent funds, which are used to account for resources

legally held in trust for use by the park and library systems of the City. There are legal

restrictions on the resources of the funds that hold that the principal remains intact and only

the earnings are allowed to be used for the program.

The City reports on the following fiduciary funds:

• The Municipal Pension Fund accumulates resources to provide pension benefit

payments to qualified employees of the City and certain other quasi-governmental

organizations.

• The Philadelphia Gas Works Retirement Reserve Fund accumulates resources to

provide pension benefit payments to qualified employees of the Philadelphia Gas

Works.

• The Escrow Fund accounts for funds held in escrow for various purposes.

• The Employees Health & Welfare Fund accounts for funds deducted from

employees’ salaries for payment to various organizations.

• The Departmental Custodial Accounts account for funds held in custody by various

City Departments.

The City reports the following major proprietary funds:

• The Water Fund accounts for the activities related to the operation of the City's

water delivery and sewage systems.

• The Aviation Fund accounts for the activities of the City’s airports.

48

Proprietary funds distinguish operating revenues and expenses from non-operating items.

Operating revenues and expenses generally result from providing services and producing

and delivering goods in connection with a proprietary fund’s ongoing operations. The

principal operating revenues of the Water Fund are charges for water and sewer service.

The principal operating revenue of the Aviation Fund is charges for the use of the airport.

Operating expenses for enterprise funds include the cost of sales and services,

administrative expenses, and depreciation on capital assets. All revenues and expenses

not meeting this definition are reported as non-operating revenues and expenses.

B. COMPONENT UNITS

The component units of the City prepare their financial statements in a manner similar to

that of proprietary funds, with the exception of the following:

The SDP prepares their financial statements in a manner similar to the City and utilizes the

full range of governmental and proprietary fund types.

The financial statements of the CCP have been prepared in accordance with GASBS No.

35 - Basic Financial Statements - and Management’s Discussion and Analysis - For Public

Colleges and Universities.

4. DEPOSITS AND INVESTMENTS

The City utilizes a pooled Cash and Investments Account to provide efficient management of the

cash of most City funds. In addition, separate cash accounts are maintained by various funds

due to either legal requirements or operational needs. For Permanent Funds, all highly liquid

investments (except for Repurchase Agreements) with a maturity of three months or less when

purchased are considered to be cash equivalents.

The City reports investments at fair value. Short-term investments are reported at cost which

approximates fair value. Securities traded on national or international exchanges are valued at

the last reported sales price. The fair value of real estate investments is based on independent

appraisals. Investments which do not have an established market are reported at estimated fair

value.

Statutes authorize the City to invest in obligations of the Treasury, agencies, and instruments of

the United States, repurchase agreements, collateralized certificates of deposit, bank

acceptance or mortgage obligations, certain corporate bonds, and money market funds. The

Pension Trust Fund is also authorized to invest in corporate bonds rated AA or better by Moody's

Bond Ratings, common stocks, private equity, hedge funds, and real estate.

From February to early June, deposits of the City significantly exceeded the amounts reported

at calendar year end. This was due to cyclical tax collections (billings for taxes are mailed in

December and payable in March).

5. INVENTORIES

A. PRIMARY GOVERNMENT

Supplies of governmental funds are recorded as expenditures when purchased rather than

capitalized as inventory. Accordingly, inventories for governmental funds are shown on the

Statement of Net Position but not on the Governmental Funds Balance Sheet. Inventories

of proprietary funds are valued at moving average cost except for the following:

• Industrial and Commercial Development Fund inventory represents real estate

held for resale and is valued at cost.

49

B. COMPONENT UNITS

All inventories are valued at moving average cost except for the following:

• PGW inventory consists primarily of fuel stock and gases which are stated at

average cost.

• The SDP Food Services Fund inventories include food donated by the Federal

Government which was valued at government cost or estimated value. All other

food or supply inventories were valued at last unit cost and will be expensed when

used.

• PRA inventory represents real estate held for resale and is recorded based on the

estimated appraisal of values and cost basis of land inventories acquired.

6. CAPITAL ASSETS

A. PRIMARY GOVERNMENT

Capital Assets, which include property, plant, equipment and infrastructure assets (e.g.

bridges, curbs and gutters, streets and sidewalks and lighting systems), are reported in the

applicable governmental or business-type activities columns in the government wide

financial statements. Capital assets are defined by the City as assets with an initial individual

cost of more than $5,000 and an estimated useful life in excess of three years (except for

the Aviation Fund which uses $10,000 for personal property and $100,000 for fixed assets).

Capital assets are recorded at cost. Costs recorded do not include interest incurred as a

result of financing asset acquisition or construction. Assets acquired by gift or bequest are

recorded at their acquisition price at the date of gift. Upon sale or retirement, the cost of the

assets and the related accumulated depreciation, if any, are removed from the accounts.

Maintenance and repair costs are charged to operations.

The City transfers Construction In Process to one or more of the major asset classes: (1)

when project expenditures are equal to or have exceeded 90% of the estimated cost on

new facilities (except for the Aviation Fund which uses “substantially complete” as their

determining basis for transferring construction in process to one or more of the major asset

classes), (2) when the expenditures are for existing facilities or (3) when they relate to

specific identifiable items completed during the year which were part of a larger project.

Cost of construction for proprietary fund capital assets includes all direct contract costs plus

overhead costs. Overhead costs include direct and indirect engineering costs and interest

incurred during the construction period for projects financed with bond proceeds. Interest is

capitalized on proprietary fund assets acquired with tax-exempt debt. The amount of interest

to be capitalized is calculated by offsetting interest expense incurred from the date of the

borrowing until completion of the project with interest on invested proceeds over the same

period.

Depreciation on the capital assets for all City funds is provided on the straight-line method

over their estimated useful lives: buildings - 20 to 50 years; building leasehold asset - 20

years; equipment and storage facilities - 3 to 25 years; and transmission and distribution

lines - 50 years.

Collections of art and historical treasures meet the definition of a capital asset and normally

should be reported in the financial statements. However, the requirement for capitalization

is waived for collections that meet certain criteria. The City has collections of art, historical

treasures and statuary that are not capitalized as they meet all of the waiver requirements

which are: (1) the collections are held solely for public exhibition, (2) the collections are

protected, preserved and cared for and (3) should any items be sold, the proceeds are used

only to acquire other items for the collections. Among the City’s collections are historical

artifacts at the Ryers Museum & Library, Loudoun Mansion, Fort Mifflin, Atwater Kent

Museum, and the Betsy Ross House. The City also has sculptures, paintings, murals and

other works of art on display on public property and buildings throughout the City.

50

B. COMPONENT UNITS

Depreciation on the capital assets for component units is provided on the straight-line

method over their estimated useful lives: buildings - 15 to 50 years; equipment and storage

facilities - 3 to 25 years; and transmission and distribution lines - 50 years.

7. BONDS AND RELATED PREMIUMS, DISCOUNTS & ISSUANCE COSTS

In the government-wide financial statements and in the proprietary fund statements, bond

premiums and discounts are deferred and amortized over the life of the bonds using the effective

interest method. Bonds payable are reported net of the applicable bond premium or discount.

In FY13 GASB Statement No. 65 was implemented resulting in bond issuance costs being

recognized as an expense and reported in the period incurred.

In governmental fund financial statements, bond premiums, discounts and issuance costs are

recognized in the current period. The face amount of the debt is reported as other financing

sources. Premiums received on debt issuance are reported as other financing sources while

discounts are reported as other financing uses. Issuance costs are reported as debt issuance

expenditures.

8. INSURANCE

The City, except for the Airport and certain other properties, is self-insured for most fire and

casualty losses to its structures and equipment and provides statutory workers’ compensation

and unemployment benefits to its employees. The City is self-insured for medical benefits

provided to employees in the Fraternal Order of Police, the city-administered health plan, the

International Association of Fire Fighters and District Council 47.

9. RECEIVABLES AND PAYABLES

Activities between funds that are representative of lending/borrowing arrangements outstanding

at the end of the fiscal year are referred to as due to/from other funds. Any residual balances

outstanding between the governmental activities and business-type activities are reported in the

governmental-wide financial statements as “internal balances”.

Accounts receivable included in current assets consists of billed and unbilled rentals and fees,

which have been earned but not collected as of June 30, 2022, and 2021. Credit balance

receivables have been included in unearned revenue in the statement of net position. The

allowance for doubtful accounts is management’s estimate of the amount of accounts receivable

which will be deemed to be uncollectible and is based upon specific identification. Unpaid

accounts are referred to the City’s Law Department if deemed uncollectible. Accounts are written

off when recommended by the Law Department.

All trade and property receivables in the governmental-wide financial statements are shown net

of allowance for uncollectible. The real estate tax receivable allowance is equal to 30.99% of

outstanding real estate taxes at June 30. Property taxes are levied on a calendar year basis.

The City's property taxes levied on assessed valuation as of January 1, are due and payable on

or before March 31. Taxes levied are intended to finance the fiscal year in which they become

due. The City of Philadelphia and the School District of Philadelphia both impose a tax on all

real estate in the City. Current real estate rates are $1.3998 on each $100 assessment; $0.6317

for the City and $0.7681 for the School District of Philadelphia. Delinquent charges are assessed

at 1.5% per month on all unpaid balances as of April 1. Real estate tax delinquents are subject

to lien as of the following January 1. The City has established real estate improvement programs

that abate, for limited periods, tax increases that result from higher assessments for improved

properties. Certain incremental tax assessments are earmarked to repay loans from

the City to developers who improve properties under Tax Increment Financing agreements.

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10. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES AND NET POSITION

In accordance with Government Accounting Standards Board Statement No. 63, Financial Reporting

of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, the City reports

deferred outflows of resources in the Statement of Net Position in a separate section following Assets.

Similarly, the City reports deferred inflows of resources in the Statement of Net Position in a separate

section following Liabilities.

Deferred Outflows of resources represents consumption of net position that applies to a future

period(s) and will not be recognized as an expenditure/expense until that time. Deferred Inflows of

resources represents an acquisition of net position that applies to future periods and will not be

recognized as revenue until that time.

On the full accrual basis of accounting, the components of the deferred outflows of resources and

deferred inflows of resources are as follows:

• Derivative instruments are reported for the changes in fair value.

• Deferred Refunding results from the difference in the refunding of debt and its

reacquisition price.

• Deferred pension transactions are recognized as an expense or revenue in a future

period.

• Deferred outflows of resources and deferred inflows of resources related to the City’s

OPEB.

Six component units, including (PGW), (PRA), (PPA), (SDP), (CCP), and (PHA) have items that

qualify in some of the categories, which are deferred refunding, deferred pension, and deferred OPEB

categories. These items have been reported as deferred outflows or deferred inflows on the City’s

and the component unit’s Statement of Net Position.

11. COMPENSATED ABSENCES

It is the City’s policy to allow employees to accumulate earned but unused vacation and sick

leave benefits. Vacation is accrued when earned in the government-wide financial statements

and in the proprietary and fiduciary-fund financial statements. Sick leave is accrued in the

government-wide financial statements and in the proprietary and fiduciary-fund financial

statements based on an estimate of future payouts.

12. CLAIMS AND JUDGMENTS

Pending claims and judgments are recorded as expenses in the government wide financial

statements, and in the proprietary and fiduciary fund financial statements when the City solicitor

has deemed that a probable loss to the City has occurred. Claims and judgments are recorded

as expenditures in the government fund financial statements when paid or when judgments have

been rendered against the City.

13. UNEARNED REVENUE

GASB Statement No.65 prohibits the usage of the term “deferred” on any line items other than

deferred inflows or outflows. Therefore, the term “Deferred Revenue” has been replaced by

“Unearned Revenue”. Unearned Revenue as reported in all the City’s fund financial statements

represents revenue received in advance with the exception of the General Fund. The General

Fund reports two types of unearned revenue, Revenue Received in Advance ($5.8 million) and

Business Income and Receipts Tax (BIRT) ($397.2 million).

14. NEW ACCOUNTING PRONOUNCEMENTS - ADOPTED

In June 2017, GASB issued Statement No. 87, Leases. This statement establishes a single

model for lease accounting based on the foundational principle that leases are financings of the

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right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease

liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease

receivable and a deferred inflow of resources. The effect of this statement has not yet been

determined.

In June 2018, GASB issued Statement No. 89, Accounting for Interest Cost Incurred Before

the End of a Construction Period. The objectives of this Statement are to enhance the

relevance and comparability of information about capital assets and the cost of borrowing for a

reporting period and to simplify accounting for interest cost incurred before the end of a

construction period. The effect of this statement has not yet been determined.

In January 2020, GASB issued Statement No. 92, Omnibus 2020. The objective of this

statement is to enhance the comparability in accounting and financial reporting and improve the

consistency of authoritative literature by focusing on practice issues that have been identified

during the implementation of various GASB statements. The adoption of this statement had no

effect on previously reported amounts.

In March 2020, GASB issued Statement No. 93, Replacement of Interbank Offered Rates.

This Statement establishes accounting and financial reporting requirements related to the

replacement of Interbank Offered Rates in hedging derivative instruments and leases. It also

identifies appropriate benchmark interest rates for hedging derivative instruments. The adoption

of this statement had no effect on previously reported amounts.

In June 2020, GASB issued Statement No. 97, Certain Component Unit Criteria, and

Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred

Compensation Plans—an amendment of GASB Statements No. 14 and No. 84, and a

supersession of GASB Statement No. 32. The objective of this Statement is to increase

consistency and comparability related to the reporting of fiduciary component units that are

established as Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section

457 plans) that meet the definition of a pension plan and for benefits provided through those

plans. The adoption of this statement had no effect on previously reported amounts.

NEW ACCOUNTING PRONOUCEMENTS – TO BE ADOPTED:

In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations. The primary

objectives of this Statement are to provide a single method of reporting conduit debt obligations

by issuers and eliminate diversity in practice associated with (1) commitments extended by

issuers, (2) arrangements associated with conduit debt obligations, and (3) related note

disclosures.

In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public

Partnerships and Availability Payment Arrangements. The primary objective of this

Statement is to address and improve financial reporting issues related to public-private and

public-public partnership arrangements (PPPs).

In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology

Arrangements. This Statement provides guidance on the accounting and financial reporting for

subscription-based information technology arrangements (SBITAs) for government end users

(governments).

In April 2022, GASB issued Statement No. 99, Omnibus 2022. The objectives of this

Statement are to enhance comparability in accounting and financial reporting and to improve the

consistency of authoritative literature by addressing (1) practice issues that have been identified

during implementation and application of certain GASB Statements and (2) accounting and

financial reporting for financial guarantees.

In June 2022, GASB issued Statement No. 100, Accounting Changes and Error

Corrections-an amendment of GASB Statement No. 62. The primary objective of this

Statement is to enhance accounting and financial reporting requirements for accounting changes

and error corrections to provide more understandable, reliable, relevant, consistent, and

comparable information for making decisions or assessing accountability.

In June 2022, GASB issued Statement No. 101, Compensated Absences. The objective of

this Statement is to better meet the information needs of financial statement users by updating

the recognition and measurement guidance for compensated absences. That objective is

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achieved by aligning the recognition and measurement guidance under a unified model and by

amending certain previously required disclosures.

The new standards must be adopted as follows:

GASB Statement No. 91 – Effective July 1, 2022 for financial statements for fiscal year ending

June 30, 2023.

GASB Statement No. 94 – Effective July 1, 2022 for financial statements for fiscal year ending

June 30, 2023.

GASB Statement No. 96 – Effective July 1, 2022 for financial statements for fiscal year ending

June 30, 2023.

GASB Statement No. 99 - Effective July 1, 2022 for financial statements for fiscal year ending

June 30, 2023.

GASB Statement No. 100 - Effective July 1, 2023 for financial statements for fiscal year ending

June 30, 2024.

GASB Statement No. 101 - Effective July 1, 2024 for financial statements for fiscal year ending

June 30, 2025.

The effect of these statements has not yet been determined.

II. LEGAL COMPLIANCE

1. BUDGETARY INFORMATION

The City's budgetary process accounts for certain transactions on a basis other than generally

accepted accounting principles (GAAP). In accordance with the Philadelphia Home Rule

Charter, the City has formally established budgetary accounting control for its operating and

capital improvement funds.

The operating funds of the City, consisting of the General Fund, nine Special Revenue Funds

(County Liquid Fuels Tax, Special Gasoline Tax, Health Choices Behavioral Health, Hotel Room

Rental Tax, Grants Revenue, Community Development, Car Rental Tax, Housing Trust, and

Acute Care Hospital Assessment Funds) and two Enterprise Funds (Water and Aviation Funds),

are subject to annual operating budgets adopted by City Council. Included with the Water Fund

is the Water Residual Fund. These budgets appropriate funds for all City departments, boards

and commissions by major class of expenditure within each department. Major classes are

defined as: personal services; purchase of services; materials and supplies; equipment;

contributions, indemnities and taxes; debt service; payments to other funds; and advances and

other miscellaneous payments. The appropriation amounts for each fund are supported by

revenue estimates and take into account the elimination of accumulated deficits and the re-

appropriation of accumulated surpluses to the extent necessary. All transfers between major

classes (except for materials and supplies and equipment, which are appropriated together)

must have council approval. Appropriations that are not expended or encumbered at year end

are lapsed. Comparisons of budget to actual activity at the legal level of compliance are in the

City's Supplemental Report of Revenues and Obligations, a separately published report.

The City Capital Improvement Fund budget is adopted annually by the City Council. The Capital

Improvement budget is appropriated by project for each department. All transfers between

projects must be approved by City Council. Any funds that are not committed or expended at

year end are lapsed. Comparisons of departmental project actual activity to budget are in the

City's Supplemental Report of Revenues and Obligations.

The budgetary comparison schedules presented differ from the modified accrual basis of

accounting. These schedules differ from the GAAP basis statements in that both expenditures

and encumbrances are applied against the current budget, adjustments affecting activity

budgeted in prior years are accounted for through fund balance or as reduction of expenditures

and certain interfund transfers and reimbursements are budgeted as revenues and

expenditures.

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During the year, classification adjustments and supplementary appropriations were necessary

for City funds. Therefore, budgeted appropriation amounts presented are as originally passed

and as amended by the City Council. As part of the amendment process, budget estimates of

City related revenues are adjusted and submitted to City Council for review. Changes in revenue

estimates are submitted in support of testimony with regard to the appropriation adjustments

and do not need City Council approval. Revenue estimates are presented as originally passed

and as amended.

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