BOSTON — Mayor Michelle Wu’s office said overtime spending is putting a strain on Boston’s $4.9 billion budget, which is something the city is keeping an eye on following the $70 million shortfall it had to plug with reserves last year.

Wu’s office on Monday released its first quarterly budget report, representing the first three months of the fiscal year that began on July 1.

Per the report, the city is on track to end the fiscal year with a balanced budget, but is grappling with spending pressures from overtime.

“Overall operating performance remains on track with budget goals, though overtime and other spending pressures will require continued management in a challenging economic climate,” city spokesperson Marcela Dwork said.

Several non-public safety city departments such as parks, public works, and property management are facing potential overruns in budgeted overtime spending. Unlike the police and fire departments, those core city departments do not have the statutory authority to overspend.

Should overspending create a shortfall in their overtime budgets, those city departments would have to cut from employee expenses to plug the gap, the mayor’s office said.

“This dynamic has created significant service delivery pressure on these departments,” the quarterly budget report stated.

That differs from last fiscal year, when the city highlighted just an excess in public safety overtime, at $48.7 million.

As of the first quarter that ended Sept. 30, the police department has spent 34% of its budgeted overtime appropriation, while the fire department has spent 36%, the report stated.

“Both departments have made efforts to reduce hours while still fulfilling public safety needs,” the report said. “However, these appropriations have been historically overspent.”

Other potential budget busters include winter snow removal spending, which Wu said was a major driver of last fiscal year’s $70 million budget shortfall. The city overspent by $47.1 million on snow removal, costs Wu said at the time were unanticipated and largely driven by two major winter storms.

“Winter preparations are underway with the city committing 52% of the $22.7 million snow and winter budget and coordinating closely with the Streets cabinet to refine operational planning ahead of the season,” Dwork said.

The city said employee health insurance costs are on track to be within budget, but utility and fuel supply costs are at “high risk of deficit,” which it attributed to “variable market pricing and the impacts of geopolitical events,” in the report.

Wu’s office said, however, that revenue projections, including from property and excise taxes, are expected to align with budget projections, and highlighted the city’s “conservative” fiscal management as key to tackling a budget crunch.

The city has roughly $1.7 billion in emergency reserve funds.

“As of Q1, the city expects FY27 to be broadly consistent with the adopted budget,” the report states. “The city’s conservative approach to budgeting ensures adequate resources to cover unexpected shortfalls throughout the year, particularly those related to public safety overtime and snow and winter management.”

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