Summary
The Second Quarter FY11 QCMR, submitted in February 2011, provides an updated financial outlook with revenues exceeding the Five-Year Plan projection by $84.3 million. This increase is attributed to higher-than-expected Wage and Business Privilege Tax collections, along with additional funding from other governments. However, the City’s expenditures have also increased by $42.4 million, with rising costs in employee benefits, public safety, and judicial services. The report forecasts a year-end fund balance of $13.5 million, which is $20.4 million lower than originally projected due to higher obligations. The Department of Human Services’ funding adjustments account for a significant portion of the revenue increase, but risks remain from growing pension and healthcare costs. The City’s financial position has improved in the short term, but long-term fiscal sustainability remains a concern.