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File #: 133-2020    Version: 1 Name:
Type: Evening Administrative Report Status: Agenda Ready
File created: 4/20/2020 In control: CITY COUNCIL OF THE CITY OF NAPA
On agenda: 5/5/2020 Final action:
Title: Budget Workshop for FY 2020/21
Attachments: 1. ATCH 1 - Proposed FY 2020/21 General Fund Cost Saving Measures by Department
To: Honorable Mayor and Members of City Council

From: Bret Prebula, Finance Director

Prepared By: Jessie Gooch, Finance Analyst

TITLE:
Title
Budget Workshop for FY 2020/21

LABEL
RECOMMENDED ACTION:
Recommendation

Provide direction to staff regarding the proposed budget adjustments for fiscal year 2020/21, and schedule a public hearing on June 2, 2020 to receive public comment on the Fiscal Year 2020/21 Mid-Cycle Budget.

Body
DISCUSSION:
The budget for Fiscal Year 2020/21 was adopted on June 18, 2019, as a part of the City's two-year budget cycle for fiscal years 2019/20 and 2020/21. The purpose of the Mid-Cycle review is to provide an update to the Council regarding revenue and expenditure trends, and to propose appropriate revisions to the fiscal year 2020/21 budget.

COVID-19 has affected numerous aspects of our work and personal lives. The COVID-19 pandemic has had an immediate and drastic impact on General Fund revenues. The City anticipates a $10.5 million dollar shortfall in the current fiscal year (2019/20) and a $15-$20 million shortfall in fiscal year 2020/21. To provide some perspective, $10 million dollars equals 10% of the City's total General Fund budget. The Executive Team has been working to identify one-time and ongoing cost reductions to balance both this fiscal year and next fiscal year's budgets.

The City Council has already made adjustments to address the shortfall in FY 2019/20. Council approved the following expenditure budget reductions:

* Reduced Civic Center Project by $3.0 million
* Reduced Dwight Murray Plaza Project by $1.6 million
* Reduced General Fund Department Operating Budgets by $0.8 million

The Council additionally approved the potential transfer of Non-Recurring General Fund available fund balance at the end of FY 2019/20 to offset any remaining deficit at fiscal year-end. Current estimates assume that about $5.0 million from the Non-Recurring General Fund will be needed.

The FY 2019/20 budget reductions w...

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