HomeMy WebLinkAboutPowerPoint Presentation - COVID-19 Impact on City Operations & RevenuesCOVID-19
Impact on City Operations and
Revenues
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FY 2019/20 COVID-19 Operational Impact
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Since declaring a local Emergency on March 13th due to
the COVID-19 pandemic, the City has taken a number of
steps to ensure that the City:
•Has a strong public safety presence
•Maintains our infrastructure
•Supports vulnerable populations through services like
the
Senior meal program
Moratorium on evections for residential and
commercial tenants for non-payment of rent
FY 2019/20 COVID-19 Operational Impact
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While the City has had to change how we operate to slow the spread
of COVID-19 and protect the health of the public and our staff we
continue to provide essential services in our community.
•Public Counters have been closed however services continue to be
provided by phone, email and other electronic means
•Changes have been made to work schedules and where possible
staff is working remotely
•All non-emergency police reports are now being filed on-line
•Community events, sports and recreational programming have
been suspended
•Police Officers are conducting regular patrols to encourage social
distancing in our public spaces
The loss of revenue related to the COVID-19 pandemic
will have a significant impact on the City. Major
revenue sources for the City of San Bernardino
include:
•Sales Tax
•Measure Z Sales Tax
•Transient Occupancy Tax (TOT)
•Use of Money & Property
FY 2019/20 COVID-19 Revenue Impact
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Due to the outbreak of COVID-19 and the Stay-at-
Home Order, local revenues have experienced a
significant decrease from mid-year projections
Mid-year General Fund Rev. $132 million
Updated General Fund Rev. 126.9 million
Estimated decline $ 5.1 million
FY 2019/20 COVID-19 Revenue Impact
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Sales taxes are expected to decline by $3.8 million
(9.9%) in the following categories:
•General Consumer Goods - 30.4%
•Auto and Transportation - 34%
•Restaurants & Hotels - 35%
•Business and Industry - 23%
•Fuel and Service Stations - 32%
•Building and Construction - 27%
FY 2019/20 COVID-19 Revenue Impact
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General Fund Revenue – Sales & Use Tax
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Measure Z Sales Tax
Measure Z Sales Tax are also expected to decrease
by $610,000 (or 6.5%) compared to our mid-year
projection
FY 2019/20 COVID-19 Revenue Impact
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General Fund Revenue – Measure Z Tax
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Transient Occupancy Tax
Staff has reached out to a number of hotels and
motels in the City and is estimating for the FY 2019-
20 expected TOT will decline by $575,000 (or 11.6%)
compared to our mid-year projection.
FY 2019/20 COVID-19 Revenue Impact
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General Fund Revenue – Transient Occupancy Tax
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Use of Money and Property
Revenues at mid-year were anticipated at $959,517
but with requested lease waivers & lease
cancellations, a decline of $180,244 (or 18.7%) is
expected. These lease waivers/cancellations
include:
•Big-5 Sporting Goods
•Shandin Hills Golf Course
•Regal Cinemas
FY 2019/20 COVID-19 Revenue Impact
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General Fund Expenditures
Overall, General Fund expenditures appear to be in
line with mid-year projections.
A comparison of General Fund revenues to
expenditures reflects a deficit of $5.1 million for the
FY 2019-20.
FY 2019/20 COVID-19 Revenue Impact
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General Fund Revenue to Expenditures
14 *Does not include Carryovers
General Fund Reserves
Mid-year estimates reflected an overall General Fund
balance of $29.2 million. Based on General Fund
revenue losses of $5.1 million as a result of the
COVID-19 pandemic and stay-at-home order, the
expected General Fund balance is expected to end
the year at $24.18 million for the FY 2019-20.
FY 2019/20 COVID-19 Revenue Impact
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Fund Balance
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General Fund Reserves by Category
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Total General Fund Revenues FY 2019/20
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Revenues by Category
FY 19/20
Adopted
Budget
FY 19/20
Midyear
Estimates
*FY 19/20
Year-End
Estimates
$ Variance
from
Midyear
% Variance
from
Midyear
Charges for services 4,455,900 4,974,015 4,974,015 - -
Fines and forfeitures 1,815,900 1,339,969 1,339,969 - -
Franchise Tax 10,220,000 10,130,000 10,130,000 - -
Intergovernmental 2,306,000 5,298,178 5,298,178 - -
Investment income 432,000 450,058 450,058 - -
Licenses & permits 10,453,000 10,987,079 10,987,079 - -
Measure Z Sales Tax 9,021,000 9,378,979 8,768,000 (610,979) -6.51%
Miscellaneous 2,446,800 2,436,902 2,436,902 - -
Other Taxes 2,799,100 2,757,648 2,757,648 - -
Transient Occupancy Tax 4,900,000 4,956,551 4,381,551 (575,000) -11.60%
Property Taxes in Lieu of VLF 16,805,900 16,805,900 16,805,900 - -
Sales and Use Tax 36,619,400 38,323,670 34,495,000 (3,828,670) -9.99%
Use of Money and Property 908,000 959,517 779,273 (180,244) -18.78%
Utility Users Tax 23,700,000 23,300,000 23,300,000 - -
TOTAL REVENUES 126,883,000 132,098,468 126,903,574 (5,194,893) -3.93%
General Fund Ending Position
FY 2019/20 Projected
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FY 2019/20 Projected Change in General Fund
Balance/Reserves
Adopted
Budget
Midyear
Projections
Year-End
Estimates
Beginning Fund Balance 7/1/2019 (Audited)31,543,452 31,543,452 31,543,452
(Deductions)/Additions to Reserves:
Net Operating Gain (Loss)56,000 100,643 (4,993,608)
Use of Reserves for Carryovers (2,367,474) (2,367,474)
Projected 2019/20 Ending Fund Balance 31,599,452 29,276,621 24,182,370
Gas Tax - HUTA
•At mid-year our Gas tax – HUTA fund balance was expected
to end the year with a surplus of $822,312.
•Based on the Stay-at-Home Order revenues are expected to
be reduced by 15-30%, or $826,036-$1,652,072.
•This will result in a potential negative fund balance of up to
$829,760.
•Staff is recommending to defund the replacement of street
light pole knockdowns funded in the HUTA funded CIP
projects totaling $602,430.
FY 2019/20 COVID-19 Revenue Impact
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Impact on HUTA Gas Tax Fund
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Cost Recovering/Funding
•Staff is seeking every available opportunity to
track and obtain funding to address COVID-19
related expenditures.
•City allocated $2,003,529 in CDBG and $1,019,997
in ESG funding from the Coronavirus Aid, Relief
and Economic Security (CARE Act) to cover
COVID19- related expenditures.
FY 2019/20 COVID-19 Revenue Impact
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Cost Recovering/Funding (continued)
•Programming plan for the use of these funds will
be prepared for review and approval by HUD and
the Mayor and City Council.
FY 2019/20 COVID-19 Revenue Impact
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Next Steps
•The City’s non-essential part-time personnel have
been furloughed or will be working on reduced
schedules based upon operational need.
•All non-mandatory travel & training is suspended.
•Other cost saving measures are under review
•Holding positions vacant
•Additional furloughs
•Deferment or elimination of planned expenditures
FY 2019/20 COVID-19 Revenue Impact
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Next Steps (continued)
•The impact that COVID-19 will have on City
revenues and operations going into next fiscal
year is being analyzed and will be incorporated
into the preliminary budget review in May.
•A repayment schedule for the use of General Fund
Reserves required to carry the City through this
emergency period will be incorporated into the
proposed budgets for future operating years.
FY 2019/20 COVID-19 Revenue Impact
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