This post was written by Hatchet staff writer Julie Alderman.

The city welcomes a budget surplus of nearly $140 million on the first day of the 2013 fiscal year, largely because of increased tax revenue and higher employment rates.

An additional $22.8 million was collected in sales tax compared to the 2011 fiscal year, which Mayor Vincent Gray partially attributes to his job training and hiring program One City One Hire, according to a release from his office.

Over 8,000 jobs were also added in the District over the past year and unemployment dropped to 8.8 percent – down 1.7 percent from 2011.

Homeless efforts in the Department of Human Services and improvements in the city’s education system are expected to benefit from the from the surplus, according to The Washington Post.

In a letter to Gray and D.C. Council chair Phil Mendelson, Chief Financial Officer Natwar Gandhi warned that rough times are still ahead as concerns escalate over the federal budget.

“Despite the recent District job market strength and stronger than expected revenue, the continued uncertainty regarding post-election federal budget actions poses a real threat to the District’s finances,” Gandhi wrote.

He added that the European debt crisis, as well as instability in the Middle East, could also threaten the city’s finances.