DATE: September 10, 2020
SUBJECT:
Title
MONTHLY REPORTING OF FINANCIAL RESULTS AND DIRECTION TO STAFF
Body
EXECUTIVE SUMMARY:
As a result of the COVID-19 pandemic, staff currently estimates a significant loss in revenue across almost every major revenue category for the District and expects revenue losses to continue through FY 2021. Unlike many public agencies, the District receives no tax funds to help stabilize revenues in the midst of this crisis. While staff continues to talk to the State of California and the federal government to seek economic relief, the District must take prudent steps to manage our budget in these uncertain economic times.
At the March Board meeting after a report out on the magnitude of the coming fiscal emergency due to the pandemic, Chair Moore created the 2020 Budget Impact Ad Hoc Committee (Ad Hoc) that was comprised of the Executive Committee of the Board to proactively address the financial impacts of the COVID-19 crisis. The Executive Committee includes Chair Ann Moore, Vice Chair Michael Zucchet, and Secretary Dan Malcolm.
Due to continued uncertainty with the local, regional, state, and federal economies, staff will continue to work with the Ad Hoc and the full Board and will provide monthly reporting to monitor the District's financial performance against the budget. This will enable us to respond to changing economic conditions in connection with the COVID-19 pandemic. The monthly reporting will be presented to the full Board at the September 2020 Board meeting.
At the September 2020 Board meeting, staff will present a revised revenue forecast based on events that have occurred in relation to Covid-19 pandemic such as cancellation of conventions. During the FY 2021 budget development process that began in March, staff prepared and presented in multiple Board meetings, three detailed scenarios reflecting the financial impact of the Covid-19 pandemic, entitled Worse Case, Base Case, and Better Case based on informat...
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