Summary
The Fourth Quarter FY06 QCMR, submitted on August 15, 2006, provides a final financial assessment for FY06, showing General Fund revenues and obligations aligning exactly with the Five-Year Plan projections. The year-end fund balance of $201.6 million exceeds the minimum recommended by the GFOA but remains over $300 million below the high end of the GFOA’s reserve guidelines, raising concerns about long-term financial flexibility. The report highlights that all major tax revenues met projections, with overall tax collections increasing by $80 million (3.5%) over FY05, driven by Real Estate Transfer Tax growth ($35.8 million increase) and Wage Tax revenue gains ($16.6 million increase). However, federal reimbursements for Human Services declined by over $115 million, creating fiscal pressure for social service programs. Key expenditure increases included pensions and health/medical insurance costs, which together rose by $51.8 million, and debt service payments, which increased by 5.5% to $169.3 million. While the City successfully maintained fiscal stability in FY06, rising pension costs, reliance on volatile revenue sources, and the declining federal support for Human Services pose long-term financial risks.