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8.A. - Page 3 of 104 <br />FISCAL IMPACT <br />The Revised Budget uses ongoing core operating revenues for ongoing core operating expenditures and <br />is structurally balanced for City operations after making reductions in each department. It also taps into <br />$3 million in one-time reserves to fund critical community needs and City Council priorities. <br />FY 2020-21 Revised Budget Summary <br />Core operating revenues and transfers in <br />$151 million <br />Use of one time funds/reserves <br />$ 3 million <br />Total resources <br />$154 million <br />Core operating expenditures and transfers out <br />$149 million <br />One-time expenditures for City Council Priorities <br />$ 5 million <br />Total expenditures <br />$154 million <br />The City's reserve policy requires reserve levels equal to 15% of the following fiscal year's projected <br />operating revenues. Staff are completing the annual year-end reconciliation for FY 2019-20 and estimate <br />an operating balance of $10,986,000, due in part to higher than expected sales tax revenue and also due <br />to significant fourth quarter reductions in expenditures due to the pandemic. As a result, total reserves at <br />the beginning of Fiscal Year 2020-21 would have been $35 million, which is 24% of projected operating <br />revenues. After using $3 million in reserves for priority policy initiatives, the City's reserve level would be <br />21%. <br />ENVIRONMENTAL REVIEW <br />This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA <br />Guidelines, section 15378, because it has no potential for resulting in either a direct or reasonably <br />foreseeable indirect physical change in the environment. <br />PUBLIC NOTICE <br />Public notification was achieved by posting the agenda, with the agenda items being listed, at least 72 <br />hours prior to the meeting. Additionally, consideration of the revised budget was announced through <br />electronic communication channels and the Revised Budget Public Hearing notice was posted on the City's <br />website, at City Hall and at City libraries on October 15, 2020. <br />ALTERNATIVES <br />If a Revised Budget is not adopted, the budget that was adopted on June 22, 2020 will remain in effect <br />and exceed City revenues by several million dollars and fail to reduce higher deficits in future years as <br />shown in the budget forecast. <br />Page 3 of 4 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore <br />372 <br />