Faced with sharp declines in revenue brought by COVID-19, the City Council voted unanimously April 20 to trim $1.9 million in spending from the 2019-20 budget.
The action followed more than $1 million in reductions approved earlier this month as the City compensates for $3 million expected to be lost through June from transient occupancy taxes, sales taxes, parking revenue and facility rentals.
As part of its response to COVID-19, the City has discontinued all nonessential spending through a scrupulous review of departmental operating budgets. The City administration has enacted an immediate hiring freeze, reduced part-time staffing and cancelled all training and travel. The Council agreed to $750,000 in capital improvement project deferrals as the City reorganizes its finances to preserve all essential services.
The City’s staff presented the adjustments after extracting all nonessential spending from departmental budgets. The reductions do not draw from the City’s contingency reserve.
The budget adjustments are based on worst-case projections through the remainder of the 2019-20 fiscal year, which ends June 30.
In a related action, the City Council approved refunding all deposits for facility rentals through June 30.
The City Council will begin deliberations on its 2020-21 budget during a May 16 workshop.
Open the Fiscal Year 2019-20 Budget Adjustments staff report (PDF)