Summary
The Second Quarter FY20 QCMR, covering the period ending December 31, 2019, reflects continued financial growth, with revenues exceeding expectations due to higher Wage Tax, Business Income & Receipts Tax (BIRT), and Real Estate Transfer Tax collections. However, obligations have also increased significantly, with higher personnel costs, employee benefits, and a rise in indemnities and settlements. The projected year-end fund balance of $352.0 million surpasses the Five-Year Plan estimate by $142.1 million, ensuring short-term financial stability while remaining below the GFOA’s recommended 17% reserve level. Staffing levels grew by 281 full-time employees, an increase of 1.3% year-over-year, though the number of imminently dangerous properties requiring demolition spiked to 178, the highest in two years. Overtime costs remain a major concern, with Fire Department overtime continuing to rise despite reaching 95% staffing capacity and total City overtime costs approaching $200 million for the first time. The report emphasizes the importance of managing rising obligations and monitoring public safety spending to maintain fiscal health.