Summary
The Third Quarter FY15 QCMR, covering the period ending March 31, 2015, continues to reflect the financial impact of the failed PGW sale, which resulted in a $700 million revenue loss that was only partially offset by strong Business Income & Receipts Tax (BIRT) and Real Estate Transfer Tax collections. The year-end fund balance projection of $142.4 million remains above the Five-Year Plan estimate, though increased personnel costs and higher indemnities expenditures pose risks. Public safety challenges persist, with a decline in on-time trash collection to 79% and increased placements of dependent children, reflecting higher social service demand. While homicide rates remained stable, the clearance rate for homicides improved slightly compared to FY14. Overtime spending remains a concern, reaching 10.5% of total wages and salaries, driven by staffing shortages and increased police operations. The report emphasizes the need for fiscal discipline in managing labor costs, pensions, and debt service to ensure long-term sustainability.