Summary
The Third Quarter FY11 QCMR shows a mixed financial outlook, with stronger-than-expected tax revenues balanced by higher-than-projected spending. Wage Tax and Sales Tax collections remained stable, but federal reimbursements for human services declined, contributing to financial pressure. The report forecasts a year-end fund balance of $5.1 million, a decline of $28.8 million from earlier estimates, as higher personnel and benefits costs offset revenue gains. Rising overtime expenses in public safety departments have further strained the budget. Despite an anticipated operating surplus, the impact of delayed reimbursements and increased costs has significantly reduced available funds. The report notes that without adjustments, the City could face further budget imbalances in future quarters.