Loading...
HomeMy Public PortalAbout11) 9A - Budget Study Session Follow-UpAGENDA ITEM 9.A. ADMINISTRATIVE SERVICES DEPARTMENT MEMORANDUM DATE: June 16, 2020 TO: The Honorable City Council FROM: Bryan Cook, City Manager Susan Paragas, Administrative Services Director SUBJECT: BUDGET STUDY SESSION FOLLOW-UP RECOMMENDATION: It is recommended that the City Council provide further direction concerning the Proposed Fiscal Year 2020-2021 municipal budget. BACKGROUND: On June 09, 2020, staff was asked to return with information regarding the initiatives and priorities as they relate to the FY 2020-2021 proposed budget and to provide additional information regarding modifications to servicing customers due to the coronavirus (“COVID-19”) pandemic. ANALYSIS : In light of the significant events related to COVID-19 and the economic recession that officially started in February 2020 the preparation for the Fiscal Year 2020-2021 (“FY 20-21”) budget primary objective was to balance the City’s operating budget while providing a sustainable level of public service. The study session described in a broad manner the fiscal constraints in providing existing level of services. Projects and Initiatives As the City continues its discussion of the Fiscal Year 20-21 budget, the City Council may wish to discuss prior and future initiatives and priorities. As discussed during the budget study session, maintaining a base level of existing services was the primary objective of the proposed budget presented by staff. This enables the City to scale City Council June 16, 2020 Page 2 of 5 operations and initiatives to available resources if during the COVID-19 event further adjustments are required. Over the last few years, the City has initiated numerous projects and initiatives which are in progress, funded but delayed, or not funded. The following is a list of those projects and initiatives for Council review and discussion related to the FY 20-21 proposed budget. In Progress: Project/Initiatives Current Status Funding Source ADA Transition Plan Plan under review. General Fund (“GF”) Coyote Management Plan San Gabriel Valley Council of Government (“SGVCOG”) implementing program. GF Eaton Wash Los Angeles County project in City. No fiscal impact. Homeless Plan Project development underway with SGVCOG consultant SGVCOG (Measure H funded.) Library Oversite Continuous monitoring and review. Minor costs from GF. Sewer Master Plan Draft report under review. Sewer Fund On-Going: Project/Initiatives Current Status Source COVID-19 Continuing preventative operating measures. GF-possible reimbursement from CARES Act. Transportation Funding (Micro Transit) Approved agreement with Foothill Transit for sale Prop A funds Prop A Included in Proposed FY2021 Budget: Project/Initiatives Current Status Source Economic Resiliency Plan Presented to Council during 6/19 meeting CDBG and GF Grant Tracking Avant Garde providing reports and compliance monitoring. GF Las Tunas Repaving Engineering plans underway. Scheduled bidding in late summer 2020. Transportation related funds. Pavement Management-Engineering plans underway. Transportation City Council June 16, 2020 Page 3 of 5 Residential Streets Scheduled bidding in late summer 2020. related funds. Primrose Park Completion date of Summer 2021. State Park Grant Street Lighting Developing RFP for replacement of City owned Street Light to LED Lighting and Landscape District Unfunded: Project/Initiatives Current Status Source Baldwin/Las Tunas Monument Final plan and funding to be considered. Not funded at this time. Chamber Site Future Reuse Currently be used by County until mid to late 2021. Not funded at this time. Downtown Parking Study Study completed. Implementation options to be considered. Not funded at this time. Las Tunas Beautification General Concepts developed. Implementation options to be considered Not funded at this time. COVID-19 Impacts and Future Service Adjustments The FY20-21 proposed budget encompasses traditional programs and services. This allows the City the flexibility to scale services in response to the changing dynamics of the COVID-19 pandemic. The Los Angeles County (“County”) Safer at Home order forced changes to the City’s in-person processes of services and programs provided to the customers and community with online and virtual services. The departments of Community Development and Parks and Recreation revised some of their procedures to be able to maintain services to the public. Community Development The Community Development Department expanded its digital and online practices during the Safer at Home public health orders. Those practices that provide a measure of convenience and efficiency to the customer and staff will be continued when the public health orders are lifted. Some of those practices include online submittal of planning and building applications and plans, digital plan review, and online meetings with applicants. Online Planning Commission meetings will be discontinued, when it is appropriate to do so. Online payments of fees and parking fines have also been implemented and revenue adjustments have taken into account the cost of on-line payment services. Parks and Recreation The County’s Safer at Home public health order impacts the Parks and Recreation Department services significantly as programming is directly tied to the restrictions City Council June 16, 2020 Page 4 of 5 outlined by the County. With this current environment, programming more than a few months in advance is not advisable. The Parks and Recreation Department is maintaining flexibility in planning for services by planning a schedule of only a few months in advance, thus, allowing the Department to respond quickly to either the loosening or tightening of restrictions by the County as the COVID-19 evolves over the next year. The following are modified programming for FY20-21 should the Safer at Home public health order continue to restrict large group gatherings. Summer 2020 Services will be modified due to the continued restrictions of the Safer at Home order. The traditional summer programs will be adjusted to virtual services along with modified on-site events based on the latest information provided by County. Fall 2020 – Spring 2021 Due to the uncertainty with the Safer at Home order past the summer, services are yet to be determined. As restrictions by County change so will services according to the latest information. Programs may run as they have traditionally if restrictions are lifted and larger gatherings are allowed. Modified services may continue that mimic programming from summer if the restrictions are maintained at the current level. Suspended services that mirror the start of the COVID-19 response may be instituted if restrictions are tightened. With any of these options, the City is able to always maintain current budget levels or scale back operations that reduce the overall budget. CONCLUSION: The financial impacts of the COVID-19 pandemic primarily shifted the development of the FY20-21 budget into efforts of achieving a balanced budget while providing existing levels of services. However, continued discussions of the City’s FY20-21 budget allow for the incorporation of current projects and initiatives identified above with Council direction. The pandemic also caused City practices to change by expanding its digital and online services and developing virtual programs that will continue even after the lifting of the health order. Staff will continue to monitor the status of the County’s public health orders and make adjustments as needed both on the budget and programming aspects. CITY STRATEGIC GOALS: This report will further the Strategic Goal of Good Governance. City Council June 16, 2020 Page 5 of 5 FISCAL IMPACT : There is no fiscal impact at this time.