Summary
The Second Quarter FY22 QCMR, covering the period ending December 31, 2021, reflects a stronger-than-expected revenue recovery, with General Fund revenue revised upward to $5.18 billion, $104.3 million above prior estimates. However, obligations have continued to rise, primarily due to increased healthcare and public safety costs, particularly in the Police and Fire Departments. The City’s year-end fund balance is projected at $133.7 million, falling just below prior projections and remaining at less than 2.5% of total obligations. Public safety trends showed a slight decrease in homicides and shooting victims, but continued concerns over clearance rates. Overtime costs declined by 6.8% compared to FY21, but remained above pre-pandemic levels. The report emphasizes the need for ongoing expenditure monitoring, particularly in labor costs, as economic conditions continue to fluctuate.