PROVIDENCE – The capital city ended fiscal 2021 $3.7 million in the black, Mayor Jorge O. Elorza announced on Monday.
The year-end audit results also show the city has hit its target reserve fund goal, equal to 5% of expenditures, for the first time since 2008. The so-called “rainy day fund” reached $28.8 million for the year that ended June 20. It is also the sixth consecutive year the city has ended its fiscal year in a surplus, according to a news release.
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Elorza in a statement credited his administration’s responsible budgeting and “eliminating redundancy and waste” to its financial success.
“Despite the unpredictability of each year’s budget, our entire city team has continued to find innovative ways to balance our check book and put Providence on a strong financial footing,” Elorza said in a statement. “These strategies have helped the city to eliminate its deficit, improve its credit rating and achieve the 5% rainy day fund goal. I am proud of our team’s strong financial stewardship to ensure that Providence is in the best financial position.”
The city’s self-insured medical funds balance now stands at $17.8 million, equal to 16% of the annual self-insured medical budgets, the release stated. The fund serves to help the city pay for catastrophic claims if they arise.
The city also met 100% of its actuarial determined contribution to its pension fund in fiscal 2021 for the 10th year in a row.
The surplus was certified by the city’s independent auditor, CliftonAllenLarson LLP.
Nancy Lavin is a staff writer for PBN. Contact her at Lavin@PBN.com.
