Budget Reserves

Budget Reserves in Fiscal Year 2025 Are at a Near Record Level of $8.2 Billion

The FY 2025 Preliminary Budget maintains a near-record $8.2 billion in total reserves:

  • General Reserve: $1.2 billion

  • Rainy-Day Fund: $1.96 billion

  • Retiree Health Benefits Trust: $4.8 billion

  • Capital Stabilization Fund: $250 million

The city has a variety of budget reserve sources:

  • Revenue Stabilization Fund (also known as the Rainy-Day Fund): these resources are not designated for a specific purpose and are the only reserve within the city’s budget that can be carried over from year to year.

  • General Reserves: these funds are set aside annually and are not allocated for a specific use or city expense. Unused general reserves cannot be transferred from year to year.

  • Retiree Health Benefit Trust: supports healthcare benefits obligations to retirees and their beneficiaries.

  • Capital Stabilization Reserve: these funds are set aside annually and are available to support the city’s infrastructure program without taking on additional debt if projects are delayed or grow in scope.