On Tuesday, the City Council adopted the 2020-21 Supplemental Budget that establishes a path forward for economic stability, recovery and resiliency in response to the social and economic impacts of the COVID-19 emergency on the community, local businesses and City operations. In response to community input, the Council also appropriated $140,000 of new funding towards programs to support diversity, equity, and inclusion programs bringing the budget for 2020-21 to $160,000.
The City Council approved this budget while experiencing a significant revenue shortfall brought on by the COVID-19 pandemic. To address this shortfall, the City immediately activated its Fiscal Health Contingency Plan, which places a chill on hiring, purchasing, and all travel if not directly supporting essential services to the community. The City also temporally closed facilities and programs and furloughed approximately 200 part-time temporary employees. To balance the budget due to the revenue shortfall, all City Departments’ reduced their operational budgets and capital projects were deferred while continuing to deliver essential services and projects to protect the health and safety of the community.
“Today, we find ourselves in unprecedented and challenging times due to the financial impacts of the COVID-19 pandemic on the City’s ability to deliver the services, programs and projects the community values most,” said Derek Johnson, City Manager. “Despite the challenges, we were able to present a balanced budget and now our number one priority is to focus on economic and social recovery and to build resiliency for the future so all community members can recover and thrive together.”
Before the onset of the COVID-19 pandemic, the City was on track with delivering an ambitious, visionary and versatile work program. Most of the City’s revenues were slightly ahead of projections and expenditures were tracking below or at budgetary allocations. Due to the COVID-19 pandemic, the City is now facing a revenue shortfall of approximately $8.6 million in its general fund in 2020-21. As the City gradually reopens, the City’s top priority in 2020-21 will be focused on the economic recovery, stability, and resiliency goal. This goal focuses on the safe and thoughtful reopening and retention of local businesses, restarting the local and regional economy, and planning for future resiliency in alignment with state and local health orders. The goal includes ten economic recovery strategies, including:
- Community
- Businesses
- City Organization
- Impacted Industries and Business Neighborhoods
- Infrastructure and Capital Projects
- Downtown
- Cal Poly
- Community Partners
- Quality of Life
- Resiliency
In order to further assist the community during the recovery, the City Council approved deferrals of rate increases in its Parking, Water, and Sewer Enterprise funds while also investing in additional downtown improvements.
A link to the City’s supplemental budget can be found here.
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