Summary
The First Quarter FY24 QCMR, covering the period ending September 30, 2023, highlights declining revenue projections driven by reductions in Realty Transfer Tax and Business Income & Receipts Tax (BIRT), partially offset by stronger Wage and Sales Tax collections. General Fund obligations increased to $6.27 billion, $78.2 million higher than the Five-Year Plan, due primarily to higher costs in Homeless Services, indemnities, vehicle purchases for the Fire Department, and maintenance for Prisons. The year-end fund balance estimate of $685 million is $153 million above the Five-Year Plan, supported by higher-than-expected FY23 revenue carryover and non-recurring personnel underspending. Staffing shortages remain a concern, with one in five City positions vacant, and Prisons facing a 42% vacancy rate. Overtime spending through Q1 was $59.6 million, an 8.1% decline from last year, though partially impacted by staff shifting to the new Transportation Fund. The report concludes that while City finances remain stable for now, long-term trends of rising spending and slowing revenue growth pose sustainability challenges​.