Moody's anticipates the city will be challenged to grow reserves and return to its formally strong liquidity position over the near-term. The rating is balanced against a manageable debt position and a sizeable and diverse tax base. The negative outlook reflects Moody's expectation that the city will continue to face difficulties in the implementation of budget adjustments, including revenue enhancements, that will result in a stabilization of the city's declining financial position. In addition, the liquidity position may continue to face pressure over the near-term as the city attempts to return to structural balance and surplus operations.