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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />APRIL 21, 2020 <br />TITLE: <br />RECEIVE AND FILE UPDATED REVENUE <br />ESTIMATES RELATED TO COVID-19; <br />AFFIRM HIRING FREEZE FOR ALL CITY <br />POSITIONS; APPROVE APPROPRIATION <br />ADJUSTMENT TO TRANSFER MONIES <br />FROM THE REFUSE FUND TO THE <br />GENERAL FUND; DIRECT STAFF TO <br />PREPARE A DRAFT BUDGET FOR FY 2020- <br />21 UTILIZING ONE-TIME FUNDING; <br />PROVIDE PRELIMINARY BUDGET <br />DIRECTION; AND DIRECT STAFF TO <br />PROVIDE A FEASIBILITY ANALYSIS <br />RELATED TO ISSUANCE OF A PENSION <br />OBLIGATION BOND <br />/s/Kristine <br />CITY MANAGER <br />CLERK OF COUNCIL USE ONLY: <br />F-ITUNTIETWirs, <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1"Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For_ <br />CONTINUED TO <br />I11I1111111110MIl 1gC7 <br />RECOMMENDED ACTION <br />1. Receive and file report relating to updated FY 2019-20 General Fund revenue estimates. <br />2. Affirm the hiring freeze for all City vacant positions as of March 23, 2020. <br />3. Approve an Appropriation Adjustment to transfer $6.6 million of General Fund revenue from <br />the Refuse Enterprise fund to the General Fund during the current fiscal year. <br />4. Direct staff to prepare a draft budget for FY 2020-21 to include the use of the Economic <br />Uncertainty Reserve in the General Fund. <br />5. Direct Staff to return with a feasibility analysis for issuing Pension Obligation Bonds to <br />reduce the cost of the existing CalPERS Unfunded Actuarial Liability (UAL). <br />DISCUSSION <br />The COVID-19 pandemic will affect the City's financial outlook. Based upon the best information <br />the City has from multiple sources, staff expects the financial impactto continue through September <br />2020, with a gradual recovery thereafter. <br />Loss of Revenue <br />General Fund <br />Sales tax is the single largest source of revenue to the City. The FY 2019-20 revenue estimate <br />prior to the COVID-19 pandemic was $111.5 million, or approximately one-third of the General <br />Fund budget. The stay-at-home order, loss of wages, closure of restaurants, retail and many other <br />65A-1 <br />