Summary
The Second Quarter FY25 QCMR, covering the period ending December 31, 2024, reflects a widening structural deficit due to increased spending on personnel and operations, offset partially by higher revenue projections from resumed Sheriff Sales. Revenue adjustments include a $9.3 million increase in Realty Transfer Tax projections due to Sheriff Sales, but a decline in Sales and Beverage Tax collections. Obligations have increased significantly, with a $72.4 million rise in Class 900 (Advances & Miscellaneous) due to the addition of an $80.0 million federal funding reserve. The City’s projected fund balance is now at $584.3 million, lower than Q1 estimates but still above the Five-Year Plan projection. Performance indicators show a 21.0% decline in shooting victims and a 6.2% decline in homicides, though food establishment inspection delays persist due to staffing shortages. The report highlights the growing operating deficit and federal funding uncertainty, urging cautious fiscal management moving forward.