Summary
The Third Quarter FY23 QCMR, covering the period ending March 31, 2023, continues to reflect strong tax revenue growth, particularly in Wage Tax and BIRT, which have outperformed initial projections. However, obligations have grown even faster than in previous quarters, with increased spending in wages, public safety, and capital fund contributions. The projected year-end fund balance of $614.9 million remains above initial expectations, though continued expenditure growth threatens long-term financial stability. Violent crime trends improved slightly, with a decline in homicides and shooting victims, while the clearance rate for homicides increased to 63.8%. Overtime spending remains a concern, reaching $193.1 million through Q3, a 26.4% increase over the prior year. The report recommends continued fiscal discipline, particularly in labor costs and reserve management, to prepare for future uncertainties.