Summary
The First Quarter FY18 QCMR provides an overview of the City’s financial position as of September 30, 2017, showing higher-than-anticipated tax revenue, particularly in Business Income and Receipts Tax (BIRT) and Real Estate Transfer Tax collections. However, obligations are also trending higher, primarily due to increased pension contributions, overtime spending in public safety departments, and rising healthcare costs. The year-end fund balance is now projected at $208.3 million, an improvement of $131.0 million over the original Five-Year Plan estimate. The report also reviews departmental performance metrics, highlighting increases in L&I permit issuance and improvements in emergency medical response times. Despite improved revenue collections, the report warns that rising labor and pension costs could challenge the City’s long-term financial sustainability. Additionally, higher overtime spending across several departments, particularly Fire and Prisons, remains a concern.