Fiscal Health Support

The unprecedented effect of the COVID-19 pandemic is creating numerous challenges for municipal agencies. According to the National League of Cities: Overall, U.S. municipalities are expected to lose $134 billion in 2020, $117 billion in 2021 and $110 billion in 2022. Now more than ever, Municipal Leaders need to be vigilant about their agency’s fiscal health.

The League of California Cities recently released a member survey that projected total revenue losses of $6.7 billion through June 2021.

Federal funding provided by The Coronavirus Aid, Relief, and Economic Security Act included $150 billion in state and local aid, however only cities with over 500,000 people received any funding at all.

Some municipal agencies will be able to weather the fiscal storm initially, however, some will not be able to and will be compelled to cut costs. With personnel costs representing a large portion of municipal budgets, this will mean cuts in the form of furloughs and layoffs – both of which impact the ability of municipal agencies to provide services to their communities.

There are solutions that can help accelerate economic recovery in that they address immediate short-term problems while creating long-term fiscal health sustainability.

While these times are certainly challenging, they are also a time for great opportunity. Keenan’s subject matter experts – former municipal employees and officials – are uniquely poised to assist you with innovative solutions that can help mitigate the negative impact of the COVID-19 pandemic.

Fiscal Focus: Where Can We Affect Improvement

There are a number of areas where small steps can yield significant improvements for a city’s fiscal health:

Renegotiating/marketing your Employee Benefits package. Keenan has been able to help our clients achieve significant and immediate savings in Employee Benefits costs while enhancing the plans

Increase efficiency by implementing technology that promotes self-service, automation, and streamlined processes.

Strategic voluntary separation and early retirement programs, customized for your agency’s needs.

Utilizing a trust to offset pension contribution increases resulting from CalPERS’ pension program underperforming

Pre-funding OPEB liabilities and addressing GASB 74 & 75 compliance

Evaluating whether it is in your agency’s best interest to remain in CalPERS medical/PEMHCA or whether there are viable and fiscally sound alternative options

Examining unfunded Leave Liabilities, and mitigate the fiscal impact of these potentially huge expenses

There are no one-size-fits-all solutions. Your economic recovery strategy may, and should, take on a multifaceted approach that is specific to your agency’s needs.

Fiscal Health Support

Resources for California Public Agencies

There are solutions that can help accelerate economic recovery in that they address immediate short-term problems while creating long-term fiscal health sustainability.

Fiscal Focus: Where Can We Affect Improvement

ON-DEMAND WEBINAR

Returning to Work Safely During COVID-19

Resources

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