Summary
The Fourth Quarter FY05 QCMR highlights that while the General Fund balance remained stable at $26.7 million, expenditure growth in key areas such as pensions, health benefits, and human services outpaced revenue increases. The report warns that reliance on real estate transfer tax and Department of Human Services reimbursements for revenue growth may create fiscal instability if these volatile sources decline. The Fraternal Order of Police arbitration award is expected to increase costs by $46 million over the Five-Year Plan, exacerbating long-term financial pressure. The City also faced a decline in parking violation fines and reduced Aviation Fund reserves. Staffing reductions in Police, Fire, and Streets helped control expenditures, but rising overtime in the Fire Department offset some of these savings. The report emphasizes the need for more aggressive financial management to maintain fiscal stability.