65A - RECEIVE AND FILE REVENUE ESTIAMTES RELATED TO COVID-19

Home Browse Search

Receive and File — Budget Update — Preliminary Financial Impact related to COVID-19 April 21, 2020 Page 3 At this time, the City has no information to suggest the pandemic will affect Utility Users' Tax (UUT) revenue or the various Cannabis tax revenue(s). Other Funds Revenues The City also expects the stay-at-home order to affect Gas Tax and Measure M (a half -cent sales tax). The previous estimate for Gas Tax revenue was $14.1 million, which pays for traffic signal and street light maintenance, median landscape maintenance, and sidewalk and pothole repairs. The Gas Tax Fund has an estimated accumulated fund balance of more than $14 million, which is sufficient to cover any loss of revenue over the next six months. At this time, the City has a preliminary estimate of the impact to Measure M revenue, which pays for street improvements. The annual Local Fair Share revenue is normally approximately $5.6 million, but may decrease by $1.3 million. The FY 2019-20 budget includes Measure M appropriations totaling $22.5 million, funded with Local Fair Share and competitive awards. Prior to City Council consideration of the budget in May, Public Works staff can prepare recommendations for placing projects on hold due to the expected loss of revenue. Draft FY 2020-21 Budget Effective March 23, 2020, the City stopped all efforts to hire new employees. As of February 29, there were 153 full-time vacancies, with 82 paid by the General Fund. With a hiring freeze, the City may expect to save $7.0 million of General Fund money through June 2020. The City Council's reserve policy for the General Fund has enabled the City to set aside money for emergencies. The following General Fund summary reflects a potential loss of $12.4 million of revenue, hiring freeze savings of $7.0 million, $6.6 million one-time transfer from the Refuse Enterprise, and the $0.7 million of special election cost appropriated after the Midyear Budget re po rt. General Fund FY19-20 Reported at Midyear FY19-20 Updated Beginning Balance $67.0 $67.0 Revenue $323.2 $310.8 Expenditures & Transfers to/from other funds $ 323.0 $ 310.0 Ending Balance $67.2 $67.8 Operating Reserve 16.67% of Revenue $53.9 $51.7 Economic Uncertainty Reserve (1% of Revenue $3.2 $3.1 Available Reserve $10.1 $13.0 Ending Balance $67.2 $67.8 65A-3