By Pat Loeb

PHILADELPHIA (CBS) — The board that oversees Philadelphia government finances has unanimously approved the city’s five-year fiscal plan, but they had just a few reservations.

The PICA Board’s Executive Director Harvey Rice says the city is showing a better fund balance in the plan than it has in past years and is taking prudent precautions.

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“They have a reserve of $200 million for upcoming labor contracts as well as a reserve of $274.6 million for potential cuts from the state and federal government,” he said.

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Rice says the board was concerned that labor contracts might exceed the reserve.

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It’s also watching pension liability and the volatility of the Business Income and Receipts Tax.

Finance Director Rob Dubow says the city is too:

“Those are legitimate concerns and they’re things we’re going to have to manage through over the course of the next five years,” he said.

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The city controller also approved the plan this month.