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Home My WebLink About13 - COVID-19 Pandemic Estimated Financial Impact on City Operating Revenue and Recommended FY 2019-20 Budget Amendment - PowerPointrAmIll no= April 28, 2020 Item No. 13 P PRELIMINARY COVID-19 FISCAL IMPACT ESTIMATE FY 2019-20 BUDGET UPDATE A pri 128, 2020 Overview • Sudden decline in consumer spending has caused a massive disruption to most business sectors • Our revenue forecasts considered: • numerous updates to "shelter -in-place" orders • comparisons to previous economic recessions • predictions of how the pandemic may play out • How long will the presence of the virus will disrupt the U.S. economy is largely unknown • The FY 2020-21 budget conservatively assumes significant disruption for the entire fiscal year. $180 $160 $140 $120 $100 $80 $ate $40 $20 City Comparison Top 3 Revenue Sources ($ Millions) 50% [a ma. r*T V, '1 Property Tax ■ Sales Tax 39% Irvine 0 Transient Occupancy Tax .1 . f_1 iT•1 ill i 1 J FY 2019-20 _%A General Fund Revenues Property Taxes $11376017474 Sales Tax $3576977090 Transient Occupancy Tax $2474587131 Service Fees and Charges $2178787375 Property Income $1176637612 Other Taxes $1175977886 Licenses and Permits $479187412 Fines & Penalties $374817688 Intergovernmental $275367817 Other Revenue $176337136 Total $231,466,622 $11277237626 -$8777848 -0.8% $3474117405 -172857685 -3.6% $1970627031 -573967100 -22.1% $1875707003 -373087373 -15.1% $1074667836 -171967776 -10.3% $1078017170 -7967716 -6.9% $475477521 -3707891 -7.5% $278397260 -6427428 -18.5% $276467129 1097312 4.3% $179017329 2687193 16.4% $217,969,310 -$131497,311 -5.8% General Fund Expenditures Salary & Benefits $15575027069 $15275027069 -$370007000 -1.9% Professional & Contract Services 2577497546 $2371027927 -276467619 -10.3% Maintenance & Repair 973357354 $878567705 -4787650 -5.1% Supplies & Materials 576157312 $571057426 -5097886 -9.1% Utilities 373287840 $277537193 -5757646 -17.3% Transfer out of Workers Comp 370007000 $170007000 -270007000 -66.7% General Expenses 272507633 $270827950 -1677683 -7.5% Travel & Training 9677241 $7877886 -1797355 -18.5% Capital 9447514 $7797646 -1647868 -17.5% Transfer out of 800 Mhz Radio 5007000 $0 -5007000 -100.0% Unallocated FY19 Fund Balance - -$273007000 -273007000 Closeout Completed Capital Projects - -172647177 -172647177 Total $207,193,510 $193,406,625 -$131786,885 -6.7% FY 2019-20 Summary FY 2019-20 Conservative Revenue Shortfall Estimate (13,497,311) General Fund Expenditure Reduction (13,786,886) Surplus 289,575 FY 20 Contingency Reserve Balance 52,645,373 FY 2019-20 _%A Reduced Revenue Expectations Property Taxes $11376017474 Sales Tax $3576977090 Transient Occupancy Tax $2474587131 Service Fees and Charges $2178787375 Property Income $1176637612 OtherTaxes $1175977886 Licenses and Permits $479187412 Fines & Penalties $374817688 Intergovernmental $275367817 Other Revenue $176337136 Total $231,466,622 $11775087227 $379067753 3.4% $2876907831 -770067259 -19.6% $674347115 -1870247016 -73.7% $1773507903 -475277472 -20.7% $977097419 -179547193 -16.8% $976527973 -179447913 -16.8% $472397333 -6797079 -13.8% $376817031 1997343 5.7% $176467716 -8907101 -35.1% $5587156 -170747980 -65.8% $199,471,704 -$31,994,918 -13.8% C Budget Balancing Readiness 1 Operating Reductions 2 Temporary Hiring Freeze (Non -Safety Personnel) 3 Deferred Capital Funding & Spend 4 Savings Plan Reductions 5 Use of Contingency Reserve (As needed) 6 Reduced Discretionary Pension Funding (As needed) 7 Service Level Cuts (As needed) TOTAL (21819,882) (961,548) (16,853,888) (41000,000) (10,000,000) (51000,000) (39,635,318) Deferred Capital Funding and Spend Neighborhood Enhancement Fund (NF -FI $5.6M $2.4M Facilities $1.5M Maintenance Plan(FMP) FMP Facilities General Financial Fund Plan (FFP) CIPS $5M FFP General Fund $8.5M $4.5M Harbor & Beaches Master Plan HBMP (HBMP) Deferred Capital Funding and Spend Neighborhood Enhancement Fund (NEF) $5.6M NEF Facilities Maintenance Plan(FMP) General Fund CIPS $1M FMP General Fund Facilities Financial Plan (FFP) H BMP FFP Reduced Capital Funding Results in $16.9M General Fund Savings Harbor & Beaches Master Plan (HBMP) Closeouts $5M FMP General Fund Facilities Financial Plan (FFP) H BMP FFP Reduced Capital Funding Results in $16.9M General Fund Savings Harbor & Beaches Master Plan (HBMP) Grant Funding Program Grant Funding Program Community & Provides grants for human service programs and Human Svc Grants 80,000 67,000 non -profits Special Event Support 60,000 Cultural Arts Grants 40,000 Provides grants in the form of City fee waivers for 56,940 community events held in the City Provides grants for art organizations and programs including performance-based art for the 31,000 community Provides grants to events that are large scale and Signature Events 244,000 244,000 of economic benefit to the community Community & Human Service Grants Total Remaining $28,000 Organization IFY 2019-20 IFY 2019-20 AllocationService Support for disenfranchised grandparents Advocates for Grandparent -Grandchild 1,000 1,000 experiencing issues with a grandchild Connection Oral History interviews, videos and new exhibits Balboa Island Museum & Historical 20,000 20,000 Society Youth Development Program Boys and Girls Club of Central Orange 7,000 7,000 Coast Promotion of International understanding with youth Newport Beach Sister Cities Association 2,000 2,000 Water Safety for preschool age 5-10 years old and Newport -Mesa Family YMCA 7,000 7,000 adults Homeless services Lady Queen of Angels - Helping Hands 10,000 10,000 Declined grant Share Our Selves (SOS) Corporation 15,000 - Job preparedness for 16-24 year old Youth Employment Service 5,000 5,000 *SOS declined grant Original Approved Total $67,000 $52,000 Total Budget $80,000 Total Remaining $28,000 Special Event Support Total Remaining $30,650 ■ Organization FY ,., Allocation FY 2019-20 Actual Easter Egg Hunt for Olive Crest Foster Care Newport -Irvine Rotary Club 500 - Lobsterfest Foundation Lobster Fest at Newport Beach 2,000 2,000 Our Lady of Mount Carmel Car Show Knights of Columbus 15083 500 500 Newport Garden Tour by Sherman Library Sherman Library & Gardens 500 - Corona Del Mar High School Home Tour CdM High School Home Tour 500 500 2019 Grad Night Newport Harbor High School PTA 240 - Balboa Island Parade Balboa Island Improvement Assoc. 9,300 - Balboa Island Tree Lighting/Snow Day Balboa Island Improvement Assoc. 1,100 1,100 Taste of Balboa & Carnival Balboa Island Improvement Assoc. 2,700 2,700 Fourth of July Parade Balboa Peninsula Point Association 500 500 CdM Christmas Walk Corona del Mar Chamber 51000 5,000 CdM Scenic 5K Corona del Mar Chamber 12,750 - Field of Honor Exchange Club of Newport Harbor 2,800 - CdM Sand Castle Contest NB Chamber of Commerce 650 650 Newport Classic Surf Contest 19th Newport Harbor High Surf Team 1,500 - Newport -Mesa Spirit Run Newport -Mesa Spirit Run, Inc. 15,900 15,900 Newport EI Car Show Newport Elementary Foundation 500 500 Original Approved Total $56,940 $29,350 Total Budget $60,000 Event Postponed/Cancelled $27,590 Total Remaining $30,650 ■ Cultural Arts Grants Total Remaining $9,000 ■ Organization Baroque Music Festival CdM IFY ,., Allocation 4,000 IFY 2019-20 4,000 Performance at the Sherman Gardens - 5 concerts Concert at Our Lady Queen of Angels Church Kontrapunktus 2,000 2,000 Concerts on Balboa Island Balboa Island Improvement Assoc. 2,500 2,500 Food for Thought Adult Brain Health Program at Oasis Chuck Jones Center for Creativity 2,000 2,000 Student Music Program Pacific Symphony 5,000 5,000 The Arts Master Program for students K -6th Newport EI School Foundation 500 500 Youth Education Program Philharmonic Society of OC 5,000 5,000 420 Students to see "I Never Saw Another Butterfly" Laguna Playhouse 5,000 5,000 Theater for Young Audiences South Coast Repertory 5,000 5,000 * A❑ City Grant recipients have received their grant checks Original Approved Total $31,000 $31,000 Total Budget $40,000 Total Remaining $9,000 ■ Signature Events Event Postponed/Canceled $160,000 Organization IFY ,., Allocation IFY 2019-20 Newport to Ensenada Yacht Race Newport Ocean Sailing Association 10,000 10,000 Newport Beach Restaurant Week Newport Beach Restaurant Association 9,000 9,000 Komen Orange County MORE THAN PINK Walk Susan G. Komen Orange County 10,000 10,000 Hoag Classic Hoag Charity Sports, Inc. 15,000 15,000 Newport Beach Film Festival Newport Beach Film Festival 150,000 150,000 Newport Beach Christmas Boat Parade Newport Beach Chamber of Commerce 50,000 50,000 *All Signature events received their grant checks Original Approved Total $244,000 $244,000 Event Postponed/Canceled $160,000 Next Budget Milestones • Tuesday, April 28 - City Council considers City Manager's proposed amendments to the FY 2019-20 budget. • Thursday, May 14 - Finance Committee 1 st review of FY 2020-21 budget. • Thursday, May 21 - Finance Committee 2nd review of FY 2020-21 budget. • Tuesday, May 26 - Council Study Session - 1st Council Review of Proposed Budget (Joint Council/Finance Committee). • Thursday, May 28 - Finance Committee to develop written comment on City Manager's Proposed FY 2020-21 Budget. Recommendations for changes to Proposed budget will be presented via Proposed Budget Revision (PBR). • Tuesday June 9 - City Council Budget Adoption and GANN limit public hearing. �1 [20