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06-23-2020 - PowerPoint Budget PresentationADOPTION OF CITY OF WEST COVINA FISCAL YEAR 2020-21 ANNUAL OPERATING AND CAPITAL IMPROVEMENT PROGRAM BUDGET J U N E 23, 2020 Me State and County Orders caused unprecedented business shutdown — causing major income issues Budget projections based on Status Quo Budget No layoffs Hiring freeze instituted Elimination of conferences & meetings During fiscal emergency revenues difficult to predict — monitored and continuously reported to City Council One of 4 full service cities in LA County without supplemental dedicated revenue source for public safety Budget will reflect cuts in every category Reduction in number of authorized sworn police officers — from 99 to 90 Employees asked to voluntarily suspend 10% benefits Major reduction in Fire Department Overtime Deeper cuts may be necessary City Council Approve Resolution 2020-64 Adopting the Operating and Capital Improvement Program Budget for Fiscal Year 2020-21 QUESTIONS OUTLINE Community Outreach Budget Philosophy Budget Challenges Key Points Recommendation COMMUNITY OUTREACH OUTREACH DATES June 2 — Preliminary Budget Released to the Public June 3 — Finance & June 9 — Audit Committee I Community Meeting June 22 — June 3 — 21 — Community Meeting Online Community Survey BUDGET PHILOSOPHY Conservative Balanced Approach I Budget Adequate Long -Term Reserves Financial Stability BUDGET CHALLENGES Businesses Shut -down — March 16, 2020 Major Loss of Revenue (Sales Tax and Hotel Occupancy Tax, etc.) Loss of City Business Loss of Employment Potential Second Wave Rising Costs KEY POINTS