PROVIDENCE – Despite the financial challenges brought on by COVID-19, the city ended fiscal 2020 $4.7 million in the black, Mayor Jorge O. Elorza announced on Tuesday.
Results of the latest fiscal year audit, which mark the fifth consecutive year in which the city has ended with a profit, brings the city’s total surplus to $25.1 million, bolstering its “rainy day” fund to $13.7 million.
Beyond Cash Donations: How New Forms of Giving Are Transforming Not-for-Profit Accounting
Evolving Funding Landscape for Not-for-Profits Not-for-profit organizations are being asked to do more with less,…
Learn More
Elorza in a statement credited the city’s strong financial position to “sound fiscal management” on behalf of the administration and City Council.
The fiscal 2020 surplus stemmed primarily from a budgeted $3.7 million in the city’s rainy day fund, with the remaining $1 million surplus stemming from “stringent” hiring and spending rules due to the pandemic, as well as an expanded tax base, budgeted attrition and “more realistic” budgeting practices and management, the release stated.
The city also saw a $13.8 million surplus in its fiscal 2020 self-insured medical fund, bringing its reserve balance to $21.8 million, or 20% of the $108 million self-insured medical fund budget. The self-insured medical fund reserve balance serves to protect the city against “catastrophic” claims.
The city also met 100% of its pension fund contribution in fiscal 2020 for the eighth consecutive year.
The city has still not passed a budget for fiscal 2021 that began July 1, after delaying approval of a spending plan until a state budget was passed. With a state fiscal 2021 “skinny budget” signed into law in December, the city is working to schedule meetings to finalize its own budget, according to Ben Smith, a spokesman for Elorza’s office.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
