Summary
The First Quarter FY07 QCMR highlights a projected fund balance of $198.4 million, exceeding the Five-Year Plan estimate but reflecting a $56 million drop from FY06 due to rising costs. Wage and Business Privilege Tax collections are outperforming expectations, but healthcare, pension, and debt service costs continue to grow at a faster pace than revenues. The City faces declining federal reimbursements for human services, creating additional financial strain. Staffing levels are increasing, reversing prior reductions, and contributing to higher personnel costs. The report also notes that overtime is projected to increase, particularly in the Police and Fire Departments. While current revenues provide stability, the report warns that expenditure growth could lead to long-term deficits.