Summary
The Third Quarter FY18 QCMR, covering the period ending March 31, 2018, provides an updated financial outlook, noting stable tax revenue performance, particularly in business income and real estate transfer taxes. However, obligations have continued to grow, largely due to rising pension costs, higher-than-anticipated overtime expenditures, and new labor agreements. The City’s operating deficit is projected at $83.5 million, a deterioration from prior estimates, though prior-year adjustments and revenue gains help offset some of the increase. The report highlights improvements in some public safety and human services metrics, including a decline in emergency response times and higher child protective services compliance rates. However, higher employee leave usage and continued pension liability growth pose long-term risks. The City remains financially stable in the short term but will need to address structural imbalances to maintain fiscal health.