Summary
The First Quarter FY21 QCMR, covering the period ending September 30, 2020, highlights the continued fiscal impact of the COVID-19 pandemic, with General Fund obligations increasing due to higher employee benefit costs and service-related expenditures. The City’s projected fund balance is precariously low at $22.8 million, representing less than 1% of total obligations, which falls far short of the GFOA’s recommended 17% reserve. Tax revenue collections were relatively stable, but the City faced significant financial pressures from rising pension contributions and overtime expenses. Public safety overtime declined slightly compared to the prior year, but homicides increased by 58.7%, and the clearance rate fell by 16.1 percentage points. The report also notes service delays in sanitation and public health programs, with on-time trash collection rates declining sharply due to increased waste tonnage. With the projected fund balance at risk, the report recommends immediate cost-cutting measures to maintain financial stability.