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File #: 2020-7965   
Type: Regular Agenda Item
Body: City Council
On agenda: 5/20/2020
Title: Workshop for Fiscal Year (FY) 2020-21 Mid-Cycle Budget Update to Provide Direction on Funding Changes that will be Incorporated into Budget Adoption Hearing Materials for City Council Consideration in June 2020. (Finance)
Attachments: 1. Exhibit 1 - FY 2020-21 General Fund Budget Summary, 2. Exhibit 2 - Citywide Budget All Funds Summary, 3. Exhibit 3 - General Fund 5-Year Forecast, 4. Exhibit 4 - City Manager Recommended Budget Adjustments, 5. Exhibit 5 - Capital Improvement Program Update, 6. Presentation, 7. Correspondence, 8. Public Comment
Title

Workshop for Fiscal Year (FY) 2020-21 Mid-Cycle Budget Update to Provide Direction on Funding Changes that will be Incorporated into Budget Adoption Hearing Materials for City Council Consideration in June 2020. (Finance)

Body
To: Honorable Mayor and Members of the City Council

EXECUTIVE SUMMARY

This year represents a tale of two budgets. As we began the Mid-Cycle Budget review in January, it appeared that we would have about $3 to $4 million for additional services or capital projects for the year end for Fiscal Year (FY) 2019-20. However, as we enter the May study session, we have a very different budget outlook for FY 2020-21.

When the Mid-Year Report was presented to City Council on March 3, 2020, the City of Alameda (City) was projecting an estimated increase of $7 million in FY 2019-20 General Fund revenue. City Council had originally approved General Fund revenue of $100,809,888. With the economic impact of COVID-19 pandemic, it is now estimated that General Fund revenues will be closer to $100 million or $7.7 million below what was projected in the Mid-Year Report. In order to close the gap and ensure the City is able to end the year in a positive position, City Council approved altering the pension policy to not make the discretionary Pension/OPEB contribution in FY 2019-20.

The drop in revenues, due to the COVID-19 pandemic, is expected to continue and drastically changed staff's approach in preparing the Mid-Cycle FY 2020-21 budget. While this is the second year of a two year budget, in order to ensure the City would have a balanced budget, staff reevaluated what had been recommended and approved by City Council in June of 2019. The recommended Mid-Cycle General Fund budget is close to $1.5 million below the amount approved by City Council in June 2019. This budget workshop provides the City Council with an opportunity to review staff's proposal and provide direction. Based on that input, the Mid-Cycle Budget update will be presented t...

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