Summary
The Fourth Quarter FY24 QCMR, covering the period ending June 30, 2024, provides a final fiscal year assessment, highlighting a higher-than-expected fund balance, largely due to lower spending and slight revenue improvements in Realty Transfer Tax and Locally Generated Non-Tax revenues. While General Fund revenues were still below the Five-Year Plan by $66.5 million, spending projections were revised downward from Q3 due to the City not using funds set aside in the Recession Reserve and rolling some departmental funding into FY25. The final year-end fund balance of $628.0 million is significantly higher than projected, ensuring short-term fiscal stability, though long-term concerns remain regarding slowing tax growth and future deficits. Staffing challenges persist, with the City ending the year 2,215 employees below its staffing projection, impacting public safety and sanitation operations. Overtime spending was $262.0 million for the year, or 12% of total wages, coming in $8.2 million under budget but still historically high. The report underscores the importance of maintaining reserves while controlling expenditures, particularly as the City anticipates operating deficits in the coming years​.