Summary
The Third Quarter FY13 QCMR, covering the period ending March 31, 2013, highlights strong revenue growth, with General Fund revenues now projected at $3.68 billion, $107.8 million above the Five-Year Plan estimate. However, obligations have also increased to $3.70 billion, $95.3 million above the original projections, largely due to increased pension contributions and personnel expenses. The City’s operating deficit has improved slightly to $23.6 million, down from $50.3 million in Q2. The year-end fund balance is now projected at $140.9 million, $59.6 million above the Five-Year Plan projection, reflecting stronger-than-expected tax revenue and improved fiscal management. The report warns that pension costs and healthcare obligations remain significant long-term risks. While the financial outlook has improved, continued expenditure control is necessary to maintain fiscal stability.