3rd Quarter Budget Letter Highlighted

OFFICE OF THE MAYOR S50 MAIN STREET

HARTFORD, CONNECTICUT 06103 Telephone: (860)543-8500 FAX: (860)722-6606

EDDIE A. PEREZ MAYOR

May 14, 2009

Dear Council Members: Transmitted herewith is the Third Quarter Report for Fiscal Year (FY) 2008-2009, which includes a Third Quarter Financial Report, the Grants Administration Report, the Department Performance Results Report, the Quality of Life Report, Internal Audit Report and the Non-Financial Resolutions Report. Based on current and anticipated spending patterns, revenues are expected to decrease from the adopted level of $547,589,282 to $534,889,282 a decrease of $12,700,000 or -2.3%. Expenditures are forecasted to decrease from the adopted budget level of $547,589,282 to $543,688,281 a decrease of $3,901,000 or -0.7%. The resulting projected year-end deficit as of the end of the third quarter is $8,798,999 or -1.6%. However, it is important to note that, if planned management strategies are not realized, the total yearend deficit for FY 2008-09 potentially could reach $27,205,792. Page 2 highlights the planned management strategies for addressing the budget gap. As of the end of the Third Quarter the City has realized $393,423,059 or 73.6 % of its projected revenues and has expended $412,259,491 or 75.8% of the projected budget. The following chart highlights the year-end projections as of the third quarter and both revenue and expenditure actuals through the end of the third quarter.

General Fund

Revenue Expenditures

Adopted FY 08-09 547,589,282 547,589.282

Year-end Projection FY 08-09 534,889,282 543,688,281

$ $ $

Variance (12,700,000) (3,901,001) (8,798,999)

Year-to-Date Actuals As of March 31.2009 73.6% -2.3% $ 393,423,059 75.8% -0.7% $412,259,491

-1.6%