Summary
The Second Quarter FY23 QCMR, covering the period ending December 31, 2022, shows continued revenue growth, particularly in Wage, BIRT, and Sales Taxes, which have driven an upward revision of $189.4 million in revenue projections. However, obligations continue to rise, with spending increasing in employee wages, purchases of services, and materials. The City’s projected year-end fund balance of $660.5 million significantly exceeds prior estimates, providing additional financial stability despite increasing costs. Public safety indicators were mixed, with homicides declining but shooting incidents increasing by nearly 20%. Overtime spending has surged, increasing by 36.2% compared to the prior year, largely due to staffing shortages in Police and Fire departments. The report warns that while financial reserves have improved, the City must continue controlling expenditure growth to sustain long-term fiscal health.