Summary
The Second Quarter FY15 QCMR, covering the period ending December 31, 2014, reflects a major revenue shortfall due to the cancellation of the PGW sale, which was originally projected to generate $700 million in one-time revenue. As a result, General Fund revenues were revised downward to $3.79 billion, though higher-than-expected tax revenue helped offset part of the loss. The year-end fund balance projection remains stable at $146.1 million, $77.8 million higher than the Five-Year Plan estimate, aided by reduced obligations and lower pension contributions. Key concerns include rising wage costs due to recent labor contract settlements, increased public safety overtime, and growing pension liabilities. Public safety indicators showed a decline in homicides, but an increase in shooting incidents and slower emergency response times. The report warns that without structural reforms, the City will continue to face long-term financial challenges despite short-term stability.