The National League of Cities (NLC) released its annual City Fiscal Conditions report on October 12. The report found that most cities were better off in 2021 than in 2020 due to a rebound of city revenue sources such as income and sales taxes and the impact of historic federal assistance from the American Rescue Plan Act (ARPA). However, forecasts of inflation and uncertainty about a recession threaten to cancel out tax revenue gains in 2021 and increase costs of operations.