Summary
The Fourth Quarter FY07 QCMR confirms a final fund balance of $215.7 million, supported by stronger-than-expected Wage, Business Privilege, and Real Estate Transfer Tax collections. However, expenditure growth in pensions, healthcare, and debt service continues to outpace revenue gains, contributing to long-term fiscal risks. The report notes that the City’s reliance on volatile revenue sources remains a concern, particularly as real estate-related tax collections show signs of slowing. Staffing levels increased in Police and Fire, leading to higher personnel costs and overtime spending. The City’s prison population and associated costs have continued to rise, straining the corrections budget. While the City ended FY07 in a stable financial position, the report emphasizes the need for continued cost controls to maintain fiscal health.