Mayor Daria S. Devlin joined Gordon Mann, Public
Financial Management (PFM)’s Managing Director, to present a five-year financial
outlook for the City of Erie and outline the administration’s next steps to address
long-term financial challenges during a press conference today.
Following the start of Mayor Devlin’s administration, the City reengaged with PFM, an
independent financial firm, to conduct an in-depth, outside review of Erie’s finances
and develop a five-year outlook examining current fiscal conditions and projecting
trends based on existing revenue and spending patterns.
“From the very beginning, I have been clear that we are creating a City Hall grounded
in care, driven by excellence, and built on trust,” said Mayor Devlin. “Those values
require transparency, especially during difficult moments, and we owe residents clear
and factual information as we work through these challenges together.”
PFM previously worked with the City of Erie in 2019. That work identified several
structural issues that, if left unaddressed, would continue to put pressure on the City’s
finances over time. Today’s analysis builds on that foundation.
Gordon Mann shared the following seven key findings from the analysis:
- Much of the City’s revenue is restricted for pension purposes, and correcting
the 2026 budget to properly reflect pension revenue and expenses results in a
projected $12 million operating deficit entering 2027. - Erie’s pension picture has improved.
- The City has relied on one-time revenue sources to cover recurring costs.
- Real estate tax revenue has shown limited growth without rate increases.
- Headcount increases have contributed to faster personnel cost growth.
- Operating expenses have accelerated.
- Debt costs are projected to surge beginning in 2033.
PFM will continue working with City departments to conduct a management audit
and develop recommendations aimed at addressing both financial and operational
challenges. The final Strategic Management Planning Program document is expected
in August and will help guide development of the City’s 2027 budget.
Mayor Devlin said the administration has already begun meeting with department
heads to identify immediate cost savings, improve efficiencies, and explore additional
revenue opportunities.
“From the moment we had a clear understanding of the City’s financial position, we
acted,” Devlin said. “This is not a one-step process, but a series of responsible
decisions that will help stabilize the City and secure a stronger, more sustainable
future.”
Mayor Devlin also emphasized that the City of Erie remains fully operational, with
maintaining essential public services a top priority throughout this process. These
efforts are focused on stabilizing the City and protecting the services residents rely on
every day, while ensuring long-term financial sustainability.
The City also announced a public City Council study session scheduled for 5:30 PM
tonight, May 14, along with a dedicated webpage featuring frequently asked
questions about the financial outlook.
Residents are encouraged to follow City communications for future updates and
opportunities for public engagement, including the City of Erie’s official social media
channels @CityofEriePA.
