Summary
The First Quarter FY19 QCMR provides an assessment of the City’s financial performance as of September 30, 2018, showing higher-than-anticipated tax revenue, particularly from Wage Tax, Business Income and Receipts Tax (BIRT), and Real Estate Transfer Tax. However, obligations have risen sharply, driven by higher staffing costs, pension contributions, and growing overtime expenses, particularly in the Fire and Prisons Departments. The year-end fund balance is projected at $295.2 million, reflecting a $139.8 million improvement over the Five-Year Plan projection due to prior-year revenue adjustments and stronger tax collections. The report also reviews performance indicators across various City departments, including a reduction in vacant property demolitions due to resource constraints and a continued backlog in court case resolutions. Despite the higher-than-projected fund balance, the report highlights growing concerns about rising expenditures, particularly in personnel-related costs. The City is advised to closely monitor spending trends and labor negotiations to prevent future budget shortfalls.