DEPARTMENT: City Manager's Office
DEPARTMENT HEAD: Scott Huizenga
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
FY 2021 Trial Budget and FY 2021-FY 2025 Five-Year Financial Forecast
SUMMARY:
City Council will be provided with an informational briefing on the City's FY 2021 Trial Budget and the City's Five-Year Financial Forecast covering FY 2021 through FY 2025. The Forecast will focus on the City's General Fund, Development Services Enterprise Funds, and the Hotel Occupancy Tax Fund.
BACKGROUND INFORMATION:
FY 2021 Trial Budget
COVID-19 has caused an unprecedented economic disruption with the national unemployment rate rising to levels not seen since the Great Depression. As a result of the dramatic impact to the local economy, the City estimated significant revenue losses to the General Fund, Hotel Occupancy Tax Fund, Airport Fund, and other restricted funds. Measures were approved by City Council on June 4, 2020 to keep the budget in balance including canceling or suspending programs and projects including street maintenance, economic development incentives, and instituting a civilian hiring freeze.
Financial challenges are expected in FY 2021 and the City Manager recommends a Trial Budget be presented to City Council for the General Fund, Hotel Occupancy Tax, Airport Fund, Development Services Fund, and the Parking Fund. The Trial Budget provides an opportunity to discuss potential reductions to the budget before the proposed budget is developed.
To give City Council and the Community an opportunity to provide feedback on the Budget, prior to the Proposed Budget in August, staff will provide an overview of the FY 2021 Trial Budget. The Trial Budget will include certain revenue and expenditure assumptions, as well as potential reductions to certain funds as a result of the impact of COVID-19 on the economy. The Trial Budget presented on June 18th will be discussed in detail during the June 26th City Council Goal Setting Session.
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