Summary
The Third Quarter FY07 QCMR reports stable financial projections, with no major changes in revenues or obligations from prior forecasts. Business Privilege and Real Estate Transfer Tax revenues have remained strong, but the slowdown in the real estate market presents a risk to future collections. Pension, healthcare, and debt service costs continue to grow, contributing to the projected $83 million decline in the fund balance from the previous year. Federal funding for human services remains below expectations, putting additional pressure on the budget. The City’s long-term financial stability depends on controlling expenditure growth, particularly in employee-related costs. The report highlights concerns about future budget deficits if spending is not brought under control.