Summary
The First Quarter FY10 QCMR, submitted in November 2009, reports a projected negative fund balance of $30.8 million, reflecting shortfalls in Wage Tax revenue and reductions in Police on Patrol grant funds. The Five-Year Plan initially projected a $3.0 million surplus, indicating a $33.8 million deterioration in financial performance. Wage Tax collections were projected $41 million lower than planned, though Business Privilege and Real Estate Transfer Taxes increased by $20 million each. The City also faced $10 million less in Police grant funding and $11.5 million less from the PICA City Account. Expense projections increased due to higher technology costs and increased Police overtime, while some savings were found in the Sinking Fund. The City was also in ongoing labor negotiations, which could further impact the financial outlook.