Subject:
Title
FY 2020-21 Budget Work Session #4
Body
BACKGROUND SUMMARY:
Due to the Governor of Virginia's orders for non-essential businesses to close and for citizens to stay at home as a result of the COVID-19 pandemic, Council has expressed the desire to adjust the FY 2020-21 operating budget. This is the focus of the work session.
Two scenarios are now being considered that were discussed at the public hearing for the budget, held on April 13, 2020. Scenario 2 assumes a 9/30/20 return to normal date and scenario 3 assumes a 12/31/20 return to normal date. The Finance department estimated revenue shortfalls based on current data and assumptions of the effects that the pandemic through certain dates. Finance took another $245,000 out of each scenario for the general fund based on Council's request to present a more conservative revenue estimate. The debt service fund's scenarios already presented are consistent with meals tax receipts for March, and have not been changed from the public hearing. Department heads then came up with additional expenditure items they could cut to help bridge the gap and balance the budget.
With a revenue decrease of $1.6 million for the 9/30/20 re-opening, the general fund would decrease by 5.9% from the original proposed budget, or a decrease of 3.3% from the FY 2019-20 adopted budget.
A re-open scenario of 12/30/20 yields a general fund revenue decrease of 9.4%, or a 6.8% decrease from the FY 2019-20 adopted budget.
With these changes to the general fund and the debt service fund, the 9/30/20 re-opening budget would increase by 2.0% for all funds from the FY 2019-20 adopted budget. The 12/30/20 revised budget would decrease less than 0.01% from the FY 2019-20 adopted budget.
SUMMARY/STAFF IMPRESSIONS: Staff recommends that Council review the revised budget scenarios, and set the amount for the FY 2020-21 adopted budget.
RECOMMENDATION:
Recommended Action
Recommend Council finalize the amount for the FY 2020-2...
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