Summary
The First Quarter FY15 QCMR, covering the period ending September 30, 2014, highlights higher-than-expected revenues, driven by increases in Wage Tax, Real Estate Transfer Tax, and locally generated non-tax revenue. However, General Fund obligations have also increased, primarily due to rising employee benefits and contractual wage agreements. The year-end fund balance is projected at $135.5 million, which is $67.1 million above the Five-Year Plan estimate, providing some cushion against economic uncertainty. The City’s financial challenges include escalating pension liabilities, rising healthcare costs, and the need to fund labor contract settlements. Public safety overtime costs remain a significant concern, with the Fire and Police Departments exceeding their budgeted allocations. The report notes that while revenues are improving, long-term financial sustainability will require cost controls and careful management of labor-related expenses.