Speaker 0: Hi. Motion carries with you now item 90.
Speaker 3: Item 19 Report from Financial Management Recommendation to receive and file the Fiscal Year 20/21 Budget Performance Report City Wide.
Speaker 0: Mr. America. Thank you very much, Mr. Mayor. We will have a report from our Director of financial management, John Growth, and our budget manager. Manager Great Noon. Essentially, we provided a document to the public and to the council about the impacts of COVID 19. And that's something that we'll go over with now with our with our finance team.
Speaker 2: Good evening. And member of the city council. This is Greece. This is the first performance report of our flight and includes an initial assessment of the COVID 19 pandemic impact on our flight to finances, as well as the potential impact on outyear budget projections. This report, as our city manager just mentioned, is based primarily on the April 13th, 2020 memo that is needed as an attachment to the performance. The COVID 19 pandemic, along with the measure and litigation, has exacerbated our projected budget situation. The Budget Office, under the direction of the city manager, will develop a plan to address the situation, which may be a multi-year plan to be implemented over several years. The size of the projected shortfalls indicates that there will likely be significant impact assessments beginning next year and at Fy21. Long Beach is not alone in this. As many cities in California and across the country are dealing with the financial crisis caused by the pandemic and having to consider similar major actions. This projection is based on assumptions and information available during the early stages of the pandemic. So it is important to note that the economic and.
Speaker 0: Can't hear anything. Hi. This is John GROSS. I can continue this. Can you hear me? Okay. Go for it. Okay. So but Grace was saying is it's important to note that the economic environment and impacts are constantly changing and we will be impacted constantly.
Speaker 2: We will. Shortfall at the end of.
Speaker 0: I think Greece is coming in and out. Let me continue. For this report. We anticipate that there are five funds that are impacted, the general fund measure a special advertising and promotion entitlement and the airport. Yes, Grace. I'm continuing because you're going in and out, so it might be easier for me to continue. So we expect about 38 to 44 million in overall revenue losses or unbudgeted expenditure increases across the fund, across all these funds for the general fund we're talking about for FY 20 potential shortfall of 14 to 22 million. If no corrective actions taken in Greece, then the manager will be taking some corrective action. This shortfall takes into account potential revenue losses and expenses related to the pandemic that are unbudgeted and not reimbursable. And it does not include any costs that may come from assistance to businesses. For Measure A based on the current projection. We're expecting a shortfall in revenues of around $7 million, but due to strong up by 19 performance, we are expecting to end on budget based on current projections for Measure eight. We just don't have extra money for special advertising and promotion fund. Were anticipating a revenue loss of about $2 million and by the end of the year the funds available may drop from 5 million to only about 900,000 at the end of the year. The budgeted expenses in Fy20 are not reduced. We still do have an operating reserve of 5 million set aside for operating profit fluctuations and the future Olympics. Four Titans. There's going to be a revenue shortfall of at least $6 million, primarily in oil revenue. And future projection updates will also take into account the potential loss of ancillary revenue used to pay debt service entitlement fines, which include potentially the aquarium, the Queen Mary and Rainbow Harbor. For the airport fund. We're expecting a revenue loss of about $10 million in this year due to low passenger volume. And there is currently a very high cash stream due to both that revenue loss and the cost of capital improvement projects. And the airport staff is reviewing those actions. We've been really helped recently by $18 million from the CARES Act and that will really help the situation. Other funds are anticipated to be impacted by the pandemic, but with a lesser overall impact. As the manager and a decrease talked about, the city manager is implementing budget actions with regard to the pandemic spending to protect the city and its services as much as we can. We will certainly spend whatever we need to spend to address the pandemic. The actions we may take and the is looking at is evaluation of one time projects for saving, reduction of non-pandemic operating expenses where feasible, and actively looking for funding and other mechanisms to offset the cost. In addition, if we need to, we may need to go look at using city's operating and emergency reserves at the end of the year. The bottom line is that the pandemic is having a significant and severe impact on our finances. We will continue to update our projections and update City Council on new development strategies and actions being taken, and that includes the staff report. And hopefully Greece is back on the line and we're available to answer questions.
Speaker 2: Yeah. Thank you, John. I am back on a daily there this time, so hopefully the connection will be better. But thank you very much.
Speaker 0: Thank you and thank you both for a great presentation. So I want to just just briefly just say that I'm just so impressed with our finance team. I think we all have nothing but great things to say about this team. And you guys have been just really fantastic during this crisis. What's the most important thing in this emergency is to ensure that we are providing assistance to the public, making sure that public safety resources are out there and that we are doing everything we can with our resources to take care of the public and make sure people are safe and healthy. And you guys have all been quick to make that adapt, to make changes, and to then begin preparing for the future. I think we should all be prepared and understand that the budget this upcoming year is going to be tough, it's going to be hard, and we're going to have some tough decisions to make. And I know that the Council is committed to centering and ensuring that people remain safe and healthy as our top priorities. And it's going to require us to also reprioritize other things that may have been important in the past. And we need to know and be certain that that that the future of our city has to be being being prepared to take on these large health challenges to stay, keep people safe, and provide those basic services that people expect. And so I think all of that is going to be in front of us in the future, and I look forward to those discussions in the months ahead. Councilmember, your anger. Thank you, Mary. I think I totally support everything that you said. The staff has been doing an excellent job and making solvent through a move to approve the report. Thank you. Could somebody cue up a second, please? If I can get a second and a second by Councilman Richardson. But then government. Do you want to add anything? But for the most. Okay. Councilwoman, I'm going to give anything to add.
Speaker 2: I just want to thank everyone for the work. And I think it's going to be critical that the reimbursements come in. And the second tier on a multi-year approach, I think is the most.
Speaker 0: Prudent.
Speaker 2: Way to handle a lot of these big challenges. And I think that we're are just going to need to be patient.
Speaker 0: With Aaron and pitch in.
Speaker 2: Because we need to come up with a way to make sure that we.
Speaker 0: Protect our.
Speaker 2: Workforce and our city services for the taxpayers.
Speaker 0: Thank you. Councilmember Pearce.
Speaker 2: I support the motion and I really want to thank the team, both the finance team and POM. I think you guys have done a great job. I'm really happy that years ago somebody decided to put together an additional fund, so I know that we'll end up relying on that. Hopefully not as much, but I think everyone's done a great job. Thank you.
Speaker 0: Thank you, Councilwoman Pryce.
Speaker 2: No comments, Mr. Mayor. I was just a little late to the game of extending the motion.
Speaker 0: No, no problem. Catherine Ashton. They also want to just congratulate. Well thanks down for for this is very very clear look at our budget projection over the next fiscal year. I want to go to the summary of actions. It's certainly support this, but I did have some questions regarding this four points in the summary on the staff report and the three. As far as where people place a hold or counsel discretionary one time pandemic related expenditures, which I certainly support and suggest that we should avoid starting or expanding to what are discretionary and structural programs . I would absolutely support reduced budgets, structural costs, while support that improves because you see savings in that piece. I want to kind of get in on what exactly does that mean? Mr. GROSS Increase simplification. That means we're going to institute potentially hiring freezes.
Speaker 2: A couple. Remember at this time we are not implementing a hard hiring freeze, but that is definitely something. We are working with the city manager's office to evaluate and consider what we mean by increasing vacancy savings. And we are taking a much harder look and scrutinizing requests from departments to fill positions that are currently vacant right now and evaluating the filling of those vacant positions to ask whether this position can be delayed in hiring due to the redirection of staff to respond to the COVID response? Or is this something that we could put on pause longer term? And as we evaluate each case on a case by case basis, and if there are positions we delay in hiring, that will naturally create savings within the department's operating budget on a one time basis, at least for now, within FY20.
Speaker 0: So in approving this item tonight, are we giving staff the go ahead to move and take these actions? Implementing actions.
Speaker 2: Just remember we.
Speaker 0: So Councilmember this time. So we're essentially just kind of outlining what our strategy is. The council is going to be fully plugged in before we start canceling any major projects. So we're in the evaluation phase. We're managing the budget kind of on a daily basis. So in terms of, like great said, we're going to evaluate whether we need to fill positions or not. But we if and we're looking at every single expense about whether or not we should move forward. So I am placing some holds on those so that we can generate savings. But before we completely cancel any projects that, you know, you'll get a report from us on, on what our recommendations are and be able to weigh in on those going forward. Thank you. I just need that clarification. Thank you, Councilmember. I think that concludes our coverage of the questions, councilman, often about. Okay, great. We'll do a roll call vote on the motion in a second. Madam Court.
Speaker 3: District one, district two.
Speaker 2: By.
Speaker 3: District three.
Speaker 2: I.
Speaker 3: District four.
Speaker 0: I.
Speaker 3: District five.
Speaker 2: I.
Speaker 3: District six. District seven.
Speaker 0: II. District eight.
Speaker 3: Art District nine.
Speaker 0: All right.
Speaker 3: Motion carries.
Speaker 0: Thank you. Motion carries. Thank you for that. We're going to have a had a request to move item 28. So we'll go ahead and move item 28. Adam Court.
Recommendation to receive and file the Fiscal Year 2020 First Budget Performance Report.  (Citywide)