Summary
The Fourth Quarter FY11 QCMR confirms a final fund balance of $3.5 million, marking a sharp decline from earlier projections. While tax revenues increased by $46.7 million, primarily from stronger-than-expected Wage Tax and Real Estate Transfer Tax collections, spending also rose due to higher employee benefit costs and legal settlements. The City’s operating surplus stood at $93.0 million, but prior-year obligations and unexpected cost increases significantly eroded reserves. Debt service costs were lower than expected, helping to offset some expenditure growth. The report highlights the continuing financial pressure from pension obligations and public safety costs, suggesting that further budgetary adjustments will be necessary. The City’s low fund balance leaves limited flexibility to absorb future revenue shortfalls or expenditure increases.