...The Rating Outlook remains Negative and reflects the potential for weakening of the city's financial resilience, and uncertainty around projected expenditure savings and gap-closing solutions without a reliance on available reserves. Fitch Ratings recognizes progress in closing the fiscal 2027 budget gap with a combination of new recurring and nonrecurring revenues, elimination of the use of reserves, and improved projected fiscal year-end (FYE) 2026 results. Carry-forward surpluses are on a declining trend, notwithstanding continued strong yoy revenue growth. The city has proposed a minimum reserves balance policy that is subject to voters' approval in November, which Fitch would view positively. Demonstrated progress in managing expenditure growth to match changes in revenues, along with the implementation of cost savings measures to support improvement in available reserves and reduce out-year gaps, could lead to a revision of the Outlook to Stable. The `AA' Issuer Default Rating (IDR)...
