Monthly

Economic Report
Financial Forecast & Snapshot for Philadelphia and the Region

June 2017
Office of the City Controller
Alan Butkovitz, City Controller City Tax Revenues

The City Controllers monthly report Tax revenues (City & FY2017 Tax Revenues
includes an Economic Snapshot and PICA portions) for June
Forecast that assists key decision totaled $228 million, marking a
makers in understanding and $3,600 $3,079.0 $3,100.4
nine percent increase compared to $3,100
anticipating local and national economic
last June. A breakdown of the total $2,600

trends. The report includes tax revenue $2,100

revenues included $192 million
updates, the latest shifts in the Citys $1,600

into the General Fund and $36 $1,100

real estate market and other local, $600

essential statistics. million as the PICA portion. $100

Projected Actual

Wage/Earnings/NPT (City & PICA) (amounts in the millions)

collections for the month totaled $150.5 million, which is a four percent
increase over the same month last year. Yearly collections for this tax
Key Indicators category totaled more than $1.9 billion, a five percent increase over last
year.
increase in yearly Monthly sales tax collections for May totaled $19.2 million, a 60 percent in-
Wage/NPT/Earn- crease over last June. The increased amount is due to the excess revenues allo-

4% ings revenues cated for debt payment and the citys pension fund above the $120 million that
over FY16 is dedicated annually to the School District. Yearly collections totaled $183.3
million.

Yearly General Fund tax revenues totaled more than $3.1 billion, an increase of
increase in $133 million, or almost five percent, over last year. In addition, total General
Fund tax revenues are $21.4 million, or less than one percent, above the Citys
monthly home

5%
FY2017 initial Cash Flow Projections as reported in the annual budget.
sales compared
to last June
Monthly City & PICA Wage/Earnings/NPT (amounts in millions)
FY14
FY15
Millions of Dollars

200
FY16
total city employ- 170
FY17
ment increase 140

3%
compared to 110
80
June 2016 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June

Feature: Monthly City Sales Tax Receipts (amounts in millions)

$500 Million
28
26 FY14
Millions of Dollars

24
22 FY15
Sin and Sweet tax revenues 20
18 FY16
16
collected for the School District 14 FY17
12
and City over last five years 10
8
July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June

philadelphiacontroller.org pg.1
 Monthly
Economic Report
Office of the City Controller - City of Philadelphia

June 2017
employment
The non-seasonally adjusted unemployment
rate for the City of Philadelphia decreased by Yearly Unemployment Rate (%) Phila.

three-tenths of a percentage point from May 8

MSA

to June. The latest reported non-seasonally U.S.

adjusted rate is at 6.4 percent.
6
According to the Federal Reserves latest
Nonmanufacturing Business Outlook Survey, 4
the majority of indicators decreased over
the prior month, indicating slower growth in 2
businesses across the region. Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17

The Diffusion Index for General Activity at the

firm and region each dropped by about 10 points. The Diffusion Index at the firm level was 18.1, marking its lowest reading
in eight months. The New Orders Index decreased from 19.7 to -0.1, which is its first negative reading since July 2015. The
Sales/Revenues Index also fell by 20 points from 37.8 to 17.1.

In addition, employment indicators also realized declines over the prior month. The Full-Time Employment Index edged
down from 19.7 to 18.9 and the Part-Time Employment Index fell from 16.7 to 13.2.

21,000
Total Non-Farm Employment (MSA includes PA-NJ-DE-MD)
June 2017 May 2017 % Chg. June 2016
City Total 711,700 714,900 -0.4% 690,700
Construction 12,800 12,400 3.2% 12,400 employment
Manufacturing 19,800 19,900 -0.5% 20,500 increase in
Trade, Trans. & Utilities 92,900 92,900 0.0% 92,700 Philadelphia
Information 11,800 11,700 0.9% 11,800
compared to
Financial Activities 43,900 42,900 2.3% 43,200
June 2016
Prof. & Business Srvs. 98,200 98,000 0.2% 95,100
Educ. & Health Srvs. 224,200 231,100 -3.0% 214,600
Leisure & Hospitality 76,600 74,500 2.8% 70,700
Other Services 28,800 28,400 1.4% 27,900
Government 102,700 103,100 -0.4% 101,800
MSA Total 2,939,500 2,926,300 0.5% 2,879,900
Construction 120,500 118,400 1.8% 116,400
Manufacturing 178,400 176,800 0.9% 180,100
Trade, Trans. & Utilities 527,200 524,100 0.6% 522,000
Information 46,700 46,200 1.1% 47,300
Financial Activities 216,400 214,400 0.9% 213,200
Prof. & Business Srvs. 479,200 473,000 1.3% 464,700
Educ. & Health Srvs. 628,200 639,600 -1.8% 608,600
Leisure & Hospitality 281,700 271,200 3.9% 270,400
Other Services 122,200 119,800 2.0% 121,300
Government 339,000 342,800 -1.1% 335,900

philadelphiacontroller.org pg.2
 Monthly
Economic Report
Office of the City Controller - City of Philadelphia

June 2017
residential real estate

Top Home Sales

Home sales in neighborhoods South of Center City and into
South Philadelphia (19146) continued to lead the city for Top Sales by Zipcode
the most sales in June, recording 120 sales. Total sales in
this zip code were slightly higher than last month.

Home sales in neighborhoods across South Philadelphia

continue to lead the city in the top 10 highest areas. Total
sales in zip codes 19145, 19146, 19147 and 19148 account- 19128 19136
19149
ed for almost 19 percent of all homes sold in May.

June 2017 Home Sales (Top 10) 19125

% of Sales from % of Sales from 19130
ZIP Code Sales Bank Owned Short Sales 19103
19146 120 1.70% 0.80% 19146 19147
19149 94 5.30% 1.10% 19145 19148
19147 87 1.10% 0.00%
19148 79 1.30% 1.30%
19145 71 2.80% 0.00%
19125 68 1.50% 0.00%

1,819 total monthly home sales

19103 67 0.00% 0.00%
19136 66 1.50% 1.50%

5% increase
19130 65 3.10% 0.00%
in monthly sales
19128 62 6.50% 0.00%
compared to June 2016

Review of Monthly Home Sales Over Last Four Years

1,738 1,541 1,197 1,200

June 2016 June 2015 June 2014 June 2013

Home sale information is provided by TREND. Data reflects sales that occurred in the reported month and are not adjusted.

philadelphiacontroller.org pg.3
 Monthly
Economic Report
Office of the City Controller - City of Philadelphia

June 2017
feature: tracking the dollars

Sin & Sweet Taxes Totaled $500 Million Over the Last Five Years
A portion of tax revenues for the School most 40 percent increase.
Sin & Sweet Tax Revenues FY2013-2017
District of Philadelphia and the City of All revenues were remitted
$180,000,000
Philadelphia are derived from Sin and to the School District.
Sweet Taxes. This includes the Liquor by $160,000,000

the Drink Tax, Cigarette Tax and the new Cigarette Tax $140,000,000
Sweetened Beverage Tax. Almost all of The $2-per-pack tax is ap- $120,000,000
Beverage
these revenues are allocated for educa- plied to cigarettes and little
$100,000,000 Cigarette
tional services and initiatives. cigars in order to supple-
Liquor
ment public school fund- $80,000,000

These tax revenues combined for a total ing in the city. Since it was $60,000,000

of $501,870,010 from Fiscal Year (FY) enacted during FY2015, $40,000,000

2013 through FY2017. All of these reve-
nues were remitted to the School District
except for the Beverage Tax which is re-
corded into the Citys General Fund.
A breakdown of these tax collections in-
cludes the following:
Liquor by the Drink Tax
The Liquor by the Drink Tax is a 10
percent tax applied to the sale price of
alcoholic beverages purchased at bars,
restaurants, catered events and at retail
stores, which are not already subject to
the Pennsylvanias Sales Tax. Total tax
revenues gradually increased over the
last five years from $52 million in FY13
to $73 million in FY17, recording an al-
total tax revenues de- $20,000,000
creased from $58 million $0
in FY2016, which was the FY13 FY14 FY15 FY16 FY17
first full year of the tax, to
$47 million in FY2017, recording a 20
percent decrease.
Sweetened Beverage Tax
The citys new 1.5 cent-per-ounce tax
on all sweetened beverages sold within
38% Increase
Increase in Liquor by the
the city generated $32 million in the first
Drink Tax Revenues over
five months. The total through the end of
the last five years
June 30 is $7 million below the citys ini-
tial projections for the tax. The tax was
enacted to provide revenues for Pre-K, Tax revenues were compiled from the Citys
Community Schools, the Rebuild initia- Financial Accounting System and does not
include adjustments/accruals
tive and other city services.

Real Estate Tax - City General Fund & School District Amounts

2013 2014 2015 2016 2017

Liquor $52,972,035 $61,384,969 $59,488,647 $65,905,799 $73,157,273
Cigarette - - $50,245,020 $58,766,316 $47,400,830
Beverage* - - - - $32,549,120
Total $52,972,035 $61,384,969 $109,733,667 $124,672,115 $153,107,223

* Beverage Tax collections are for the first five months

philadelphiacontroller.org pg.4