Summary
The Second Quarter FY13 QCMR, covering the period ending December 31, 2012, reflects stronger-than-expected revenue collections, with General Fund revenues projected at $3.61 billion, an increase of $50.7 million over the Five-Year Plan estimate. However, expenditures have also increased, with obligations projected at $3.64 billion, $31.7 million above initial expectations, due primarily to higher pension costs and adjustments in labor contracts. The operating deficit is projected at $50.3 million, and the year-end fund balance has declined slightly to $114.9 million, down from $117.9 million in Q1 but still above the Plan estimate. The report discusses risks related to rising employee benefit costs and uncertainty in intergovernmental funding. The City’s overall financial outlook remains stable but requires careful budget monitoring to address long-term liabilities.