City Ends First Quarter of Fiscal Year 2020-2021 with a Strong Financial Position
CORPUS CHRISTI, TX – During a pandemic, the financial position of the City of Corpus Christi remains strong at the end of the first quarter of Fiscal Year (FY) 2020-2021. The first quarter period is October through December 2020. The City’s adopted FY 2020-2021 Annual Operating and Capital Budget totals $1.0 billion. For the first quarter, City revenues were 5.8% higher than budgeted for all funds. Expenditures were below budget for all funds.
General Fund revenues were 11.5% (or $10.5 million) higher than budgeted for the first quarter of FY 2020-2021, and General Fund expenditures were 18.7% (or $13.5 million) lower than budgeted. The increase in General Fund revenues can be attributed in part to additional payment-in-lieu-of-taxes (PILOT) revenue received sooner than anticipated from a large, industrial property. Additionally, sales tax revenue for the first quarter was 10.8% (or $1.4 million) higher than expected.
Health care costs for the first quarter of FY 2020-2021 were lower than expected due to a more financially feasible health care plan offered to City employees last fiscal year. This high-deductible consumer-driven health care plan with an employee health savings account has resulted in savings for both the City and its employees.
Progress is being made in increasing production for city-wide street work. Spending for contract and in-house forces has been three times greater during the first quarter of FY 2020-2021 than during the same time last fiscal year.
The City’s budget initiatives included in FY 2020-2021 are progressing as planned. Of the General Fund’s 25 budget initiatives, 17 are on schedule with the remaining eight slightly behind schedule. Corrective action plans have been established to ensure each initiative’s timely completion.
For more information on the City’s budget and finances, visit https://www.cctexas.com/financial-transparency.