The City Council unanimously adopted the budget for the next fiscal year on June 22. The City Charter requires the budget to adopted by June 30.
During her presentation, Finance Director/Treasurer Kelly A. Telford said the city wouldn’t really see the financial impact of the pandemic until July.
Later, in response to a question from District Two Councilman Thomas Moore, Finance Director Telford confirmed that the city will not spend money on capital improvement projects (such as the Lifeguard Headquarters/Seal Beach Police substation) until workshops are held.
Those workshops are currently expected to take place in August or September.
The council also approved using last year’s cost recovery schedule.
According to the Finance director’s report, the city is working on a review of citywide fees.
City staff recommended that the council adopt the current fee schedule until the study is completed and brought back to the council.
“The General Fund provides 70% of the total operating expenditures for all funds,” according to the staff report by Finance Director/Treasurer Kelly A. Telford.
“The total Proposed Fiscal Year 2020-21 General Fund Budget expenditures is $34.8 million, a decrease of $3.0 million from the Amended Fiscal Year 2019-20 Budget, which totaled $37.8 million,” Telford wrote.
“The Proposed Fiscal Year 2020-21 Operating and Capital Improvement Budget includes estimated revenues of $57.1 million compared to operating appropriations and transfers out of $55.2 million and capital improvement program appropriations of $8.1 million, resulting in an estimated use of reserves of $6.1 million,” Telford wrote.
“Revenues are expected to decline 8% over the Amended Fiscal Year 2019-20 Budget. Expenditures have been reduced to prevent the use of reserves, except in cases where there was available fund balance using restricted funds,” Telford wrote.
“The FY 2020-21 Proposed Budget discussed at the two budget workshops showed a balanced budget without the use of reserves,” Telford wrote.
“As noted above, three adjustments were made to the operating expenditures, which resulted in an increase in revenues of $560,803 and an increase in expenditures of $688,803, resulting in the use of reserves totaling $128,000,” Telford wrote.
“This is due to the approval of the COVID-19 Related Temporary Business Reopening Support Measures at the June 8, 2020 City Council Meeting,” Telford wrote.