AgdaPkt 2020-06-08 Joint SA PFA - Laserfiche WebLink

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9.A. - Page 8 of 21 The unique and uncertain economic conditions discussed below help inform the development of the FY 2020-21 Recommended Budget. The unprecedented economic shutdown due to COVID-19 was almost completely unforeseen, unmatched in its swiftness and has, almost overnight, changed all physical, economic and social activity for the world, the nation, the state of California, and the City of Redwood City. At this time, discussions regarding the reopening of the United States and California are beginning to take shape. The health officials in the seven -county Bay Area (including San Mateo County) remain watchful of the medical statistics and of the government guidance to determine when activity in Redwood City can begin to reemerge. Although unknown, it is likely that 1) getting back to "normal" will look very different than it did during the early months of 2020; 2) a recession is very likely during FY 2020-21, and; 3) this recession will likely bear little resemblance to the Great Recession of 2008-09. In addition to the City's internal research and forecast development, staff has received revenue forecast information from a variety of sources, including consultants working for Avenu Insights & Analytics, other local governments, the National Economic Education Delegation, the Institute for Local Governments, and the League of California Cities. FY 2020-21 Recommended Budget at -a -Glance The FY 2020-21 Recommended Budget for all funds totals $292.9 million in revenues and $292.6 million in expenditures (before transfers in/out). The General Fund revenue portion of the budget is $148.3 million. Due to the COVID-19 pandemic, and the resulting revenue shortfall, the General Fund is projected to have a deficit of $10.1 million. Page 8 of 20 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 697