Summary
The First Quarter FY25 QCMR, covering the period ending September 30, 2024, highlights a growing structural deficit, with obligations exceeding revenues by $325.0 million. This deficit is partially offset by a $315.0 million increase in the FY24 year-end fund balance due to personnel underspending. General Fund revenues have declined slightly due to lower-than-anticipated Realty Transfer Tax, Sales Tax, and Net Profits Tax collections, though Wage & Earnings Tax and Amusement Tax have performed better than expected. Staffing remains a challenge, with 82% of positions filled, and departments like Prisons facing a 42% vacancy rate. Public safety indicators show homicides down by 46.6% and shooting victims down by 32.5%, though the Fire Department faces delays in EMS response times. While the projected fund balance is above the City’s target of 6-8%, it remains below the GFOA-recommended level, requiring continued fiscal caution.