FY 2021 2122 ADOPTED OPERATING AND FY 2021 2526 CIP BUDGETS

70%

60%

6%

6%

6%

6%

6%

6%

50%

6%

6%

40%

30%

56%

55%

55%

55%

53%

7%

7%

6%

6%

50%

5%

4%

4%

43%

3%

20%

39%

1%

2%

2%

2%

2%

1%

1%

1%

23%

23%

23%

22%

22%

21%

20%

10%

19%

14%

13%

13%

13%

13%

13%

12%

12%

0%

FY18-19 * FY19-20* FY20-21* FY21-22 FY22-23

FY23-24 FY24-25 FY25-26

% Misc

% Misc Employee Share of Employer Rate

% Safety

% Safety Employee Share of Employer Rate

% SafetyPEPRA

% Safety PEPRA Employee Share of Employer Rate

*Actual

Summary The Adopted FY 2020-21 and FY 2021-22 budget reflects the realities of the impact of the COVID-19 pandemic as the City is expecting significant revenue loss.

This is the first time, in a long time, that there will be no “decision packages” or service enhancements included in the adopted budget. In addition to the recently implemented hiring freeze and defunding of 5.0 FTEs, the adopted budget includes deferment of certain building maintenance projects, reduced contractual services, and draw down of the General Liability Fund to supplement the expected increase in unemployment insurance claims. All these steps will not be enough as the bleak outlook requires further reduction. Staff will continue to monitor and analyze the impact to City finances from the COVID-19 pandemic and will bring to the Council additional proposals and adjustments to the budget to ensure the City’s fiscal sustainability. I would like to express appreciation to the Council and to all staff for their cooperation and assistance in the development of this budget. In particular, I want to thank the Department Heads and Budget Team for their constant support in the preparation of this document.

Respectfully submitted,

Christina Turner City Manager

ADOPTED BUDGET MESSAGE 25