Summary
The First Quarter FY23 QCMR, covering the period ending September 30, 2022, highlights higher-than-expected revenues, primarily driven by Wage Tax, Business Income & Receipts Tax (BIRT), and Sales Tax collections. However, General Fund obligations have increased significantly, due to higher wage, contract, and material costs, and increased contributions to reserves. The year-end fund balance is projected at $505.3 million, which, while exceeding the City’s 6-8% target, remains far below the GFOA’s recommended 17% reserve level. The report also highlights public safety challenges, with homicides increasing while shooting incidents decreased. Overtime spending remains high, with Q1 overtime costs increasing by 34.4% compared to the previous year. The City must closely monitor labor and operational costs to maintain long-term fiscal sustainability.