2.
City Council Combined Special Meeting/Work Session
- Meeting Date:
- 05/26/2020
- From:
- Rick Tadder, Management Services Director
TITLE
Review of the City of Flagstaff Revenue Estimates for Fiscal Year 2020-21.
STAFF RECOMMENDED ACTION:
Discussion Only.
EXECUTIVE SUMMARY:
This discussion is to inform City Council about current revenue projections for Fiscal Year 2020-21.
INFORMATION:
During the February Council Budget Retreat, staff provided estimates for our major revenues. In mid-February and early March, the Budget Team met with all Divisions of the City and allocated resources based on the most recent revenue estimates for all funds. The discussions completed with a balanced budget for all funds in the organization. Mid-March the COVID-19 pandemic began to have an impact on our community. Staff's primary focus was on the health and safety of our community and staff.
In April, Council adopted an Economic Recession Plan for the organization that provides guidance on measures and is adaptable to address further revenues declines. Staff had administratively implemented the Moderate Stage of the plan in early April. At the April Council Budget Retreat, staff discussed initial thoughts on revenue projections and outlined a balanced budget base on February revenue estimates. Staff explained that adopting a budget at this level allows the City the maximum allowable expenditures for the upcoming fiscal year. Further, we would allow the Economic Recession Plan to guide us should we see material changes to our revenue estimates for the upcoming fiscal year.
The Budget Team has been meeting multiple times per week to discuss all financial and operational issues the organization is experiencing during the COVID-19 pandemic. The team has reviewed revenues frequently and is ready to provide several revenue scenarios for the upcoming fiscal year. These scenarios demonstrate a need to implement the Significant stage of the Economic Recession plan at this time. This action will require Council approval through the adoption of a resolution per the plan. That request will follow this work session item.
In April, Council adopted an Economic Recession Plan for the organization that provides guidance on measures and is adaptable to address further revenues declines. Staff had administratively implemented the Moderate Stage of the plan in early April. At the April Council Budget Retreat, staff discussed initial thoughts on revenue projections and outlined a balanced budget base on February revenue estimates. Staff explained that adopting a budget at this level allows the City the maximum allowable expenditures for the upcoming fiscal year. Further, we would allow the Economic Recession Plan to guide us should we see material changes to our revenue estimates for the upcoming fiscal year.
The Budget Team has been meeting multiple times per week to discuss all financial and operational issues the organization is experiencing during the COVID-19 pandemic. The team has reviewed revenues frequently and is ready to provide several revenue scenarios for the upcoming fiscal year. These scenarios demonstrate a need to implement the Significant stage of the Economic Recession plan at this time. This action will require Council approval through the adoption of a resolution per the plan. That request will follow this work session item.