DATE: May 19, 2020
SUBJECT: FY 2021 PRELIMINARY BUDGET ADOPTION
Title
* RESOLUTION TO REDUCE THE FY 2019-2023 CAPITAL IMPROVEMENT PROGRAM (CIP) BY $5.7M AND ALLOCATE THE FUNDS TO THE CUMULATIVE UNRESTRICTED RESOURCES
* RESOLUTION AUTHORIZING THE USE OF CUMULATIVE UNRESTRICTED RESOURCES OF APPROXIMATELY $15.7M FOR THE FOLLOWING: OPERATING BUDGET DEFICIT $9.9M, COAST GUARD BUILD-OUT $2.2M, SEAPORT VILLAGE PRE-APPROVED FUNDING $2.8M, AND MAJOR MAINTENANCE MULTI-YEAR PROGRAM CARRYOVER FUNDING OF $0.8M
* RESOLUTION NOT TO SOLICIT PROJECT APPLICATIONS OR HOLD A CIP WORKSHOP PURSUANT TO BOARD POLICY NO. 120
* RESOLUTION ADOPTING THE FY 2021 PRELIMINARY BUDGET AND SETTING THE DATE FOR PUBLIC HEARING ON THE BUDGET AS JUNE 23, 2020
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EXECUTIVE SUMMARY:
In accordance with the San Diego Unified Port District Act (Port Act) Sections 46 and 47, by June 15, 2020, the District must adopt and publish the Fiscal Year (FY) 2021 Preliminary Budget and set a date for the Board's adoption of the final budget not less than one month from publication. Staff intends to present the FY 2021 Preliminary Budget to the Board for adoption on May 19, 2020 and present the final budget to the Board for adoption on June 23, 2020.
In previous years, the budget has generally been developed on the belief that the national and local economy will continue to grow at a moderate pace. Now, as a direct consequence of the unforeseen COVID-19 pandemic, the hospitality and tourism industries and maritime trade economic activity that generate the revenues necessary for the District's mission-critical work have been significantly and negatively impacted.
In response to these unique circumstances, at the March Board meeting, a 2020 Budget Impact Ad Hoc Committee (Ad Hoc) was created to proactively address the financial impacts of the COVID-19 pandemic. District staff developed and worked with the Ad Hoc on three detailed scenarios for FY 2021, entitled Worse Case, Base Case, and Better Case, ...
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