Summary
The Third Quarter FY19 QCMR, covering the period ending March 31, 2019, highlights continued revenue strength, primarily in Wage and Business Income Taxes, which have performed well above expectations. However, expenditures remain elevated, particularly in public safety and employee benefits, contributing to a projected increase in obligations to $4.86 billion. The year-end fund balance projection has now increased to $314.7 million, $159.3 million higher than the Five-Year Plan estimate, reflecting continued prior-year revenue adjustments and improved fiscal oversight. The report also discusses departmental performance, highlighting a reduction in overall crime rates but an increase in homicides and gun violence incidents. The City continues to face challenges in controlling overtime spending, though some improvements were noted in the Fire Department, where overtime declined slightly compared to prior quarters. Despite higher-than-expected revenues, the report warns that spending pressures—especially pension liabilities and labor contract costs—remain key long-term risks.