Summary
The Third Quarter FY24 QCMR, covering the period ending March 31, 2024, highlights a mixed financial outlook, with obligations growing due to midyear spending increases, though spending projections have been revised downward from Q2. The City’s revenue estimate declined further, largely due to reductions in Realty Transfer Tax and Business Income & Receipts Tax, which have been partially offset by stronger Wage and Sales Tax performance. The year-end fund balance estimate improved slightly to $537.0 million, aided by lower-than-expected pension allocations to the General Fund. Public safety trends were positive, with declines in homicides and shooting victims, and an increase in the homicide clearance rate to 76.8%, surpassing the 65% target. Overtime spending remained elevated at $188.0 million, accounting for 13.1% of total wages, though it declined slightly compared to FY23. The report emphasizes that while City finances appear stable, declining revenue growth and increased spending remain concerns heading into FY25.