REPORT TO COUNCIL
SUBJECT
Title
FY 2020/21 Budget Rebalancing Actions to Address COVID-19 Pandemic Impacts [Council Pillar: Enhance Community Engagement and Transparency]
Report
BACKGROUND
The FY 2020/21 budget was adopted during a time of unprecedented uncertainty with both a global public health and economic crisis as a result of the COVID-19 pandemic.
The pandemic suddenly altered the trajectory of the national economy and, while the long-lasting impacts are still not known, they have already been significant for residents, businesses, and the city.
At a local level, several of the City's General Fund revenue have been impacted, with the largest declines in the transient occupancy tax, sales tax, and fees for services categories. When the budget was approved by the City Council in June 2020, the Budget Stabilization Reserve was used to close the projected General Fund deficit of $22.7 million as a first step. The strategy of revisiting the City's fiscal condition in September and December 2020 was put into place for the purpose of obtaining more economic data, evaluating the duration of COVID-19, and developing expenditure reduction proposals. Through strong fiscal management efforts, the City has been able to develop proposals that maximize services, maintain our workforce, and suspend expenditures where appropriate due to COVID-19. The City's shortfall has been addressed with a combination of the following:
* One-time savings from cost control measures and other actions;
* Ongoing expenditure reductions;
* Potential labor negotiations (subject to meet and confer); and
* Potential ballot measures and other revenue generating actions.
This memorandum responds to the direction to reevaluate, in September, the City's fiscal condition and provide a further update to the budget based on COVID-19 impacts. Additional actions are planned to be brought forward in December 2020 and as part of the FY 2021/22 and FY 2022/23 Biennial Operating Budget. This inc...
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