To: Honorable Mayor and Members of City Council
From: Phil Brun, Utilities Director
Prepared By: Phil Brun, Utilities Director
TITLE:
Title
Solid Waste/Recycling Fund and Water Fund Budget for FY 2020/21
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RECOMMENDED ACTION:
Recommendation
Provide direction to staff regarding the proposed budget adjustments in the Solid Waste/Recycling Fund and Water Fund for fiscal year 2020/21.
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DISCUSSION:
The budget for Fiscal Year 2020/21 for the City's Solid Waste/Recycling Fund and Water Fund 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 this report is to provide an update to the Council regarding projections for end of FY2019/20 and to propose appropriate revisions to the fiscal year 2020/21 budget, primarily due to COVID-19 impacts.
COVID-19 has affected numerous aspects of our work and personal lives. The COVID-19 pandemic has had an immediate impact on Solid Waste/Recycling and Water revenues and is likely to have negative effects on revenue over-time due to delinquent accounts.
Water Fund
For FY 2019/20, COVID-19 impacts in the Water Fund are projected to be $240,000 in reduced revenue for April - June. The impacts are primarily related to hotels and restaurant closures and/or reduced business operations. Fortunately, water sales revenue is projected to exceed budget by approximately $1M in FY2019/20 due to a warm and relatively dry fall and winter. Therefore, no budget changes are necessary to absorb the COVID impact on revenues.
For FY2020/21, reduced revenue due to COVID is projected to be a total of approximately $950,000 due to the following impacts:
* $550,000 - Revenue loss from hotels, restaurants and other businesses.
* $400,000 - Reduction in Development Fees due to delayed projects.
Potential options to manage these impacts in the Water Fund includes the following elements:
* Sale of State Water Project entitlements ($1.0M - $1.4M)
* Labor Conce...
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