Case Studies

  • City of Philadelphia

    In 1991, facing a $225 million deficit, the City of Philadelphia was downgraded to “junk bond” levels and placed under state oversight. PFM was engaged by the City in 1992 to assist in developing, researching, analyzing and writing the first Five-Year Financial Plan required under the oversight law’s provisions. Execution of the initiatives set forth in the initial Plan produced an operating surplus by FY1994, a $295 million surplus within the decade, and multiple credit rating increases -- launching Philadelphia’s recovery from fiscal distress. That Plan and its subsequent annual editions have set the standard for industry analysts, government officials and academics alike in restructuring municipal operations. Fitch Ratings has described Philadelphia’s multi-year plan as a model “that can be emulated by local governments, large and small.” 





    These materials are based on factual information from actual projects that The PFM Group of companies has engaged in for a client. They are for general information purposes only and are not intended to provide specific advice or a specific recommendation. The results of individual projects will vary significantly depending upon the size and structure of each transaction, permitted investments, prevailing market conditions at the time of the transaction, and other events or circumstances beyond our control. Past performance does not necessarily reflect and is not a guaranty of future results. The information contained in these case studies is not an offer to purchase or sell any securities.