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8.A. - Page 1 of 42 <br />Redwood <br />California <br />A&/ <br />DATE: February 22, 2021 <br />SUBJECT <br />STAFF REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br />FY 2019-20 year-end budget update and adjustment to FY 2020-21 budget, FY 2020-21 Mid -year budget <br />update, and proposed framework for development of the FY 2021-22 budget <br />RECOMMENDATION <br />1. Adopt resolution appropriating and transferring certain funds for specified purposes during FY 2020-21; <br />2. Accept an update on the FY 2020-21 budget and provide direction on the recommended framework for <br />the development of the FY 2021-22 budget; <br />3. By motion, establish June 14, 2021 as the date on which the City Manager shall submit a proposed budget <br />to the City Council; and <br />4. By motion, approve the dates for City Council action on the FY 2021-22 budget as set forth in this staff <br />report. <br />STRATEGIC PLAN GUIDING PRINCIPLE <br />Excellence in Government Operations <br />BACKGROUND <br />The Mid -Year Budget Study Session provides an opportunity for the City Manager and staff to update the <br />City Council on the major financial factors affecting the City's current fiscal year budget, and make <br />recommendations for developing next fiscal year's budget. As a result of the COVID19 pandemic, the City is <br />projected to experience a 9.7 percent drop in revenue for City operations at the same time that the City is <br />striving to meet unprecedented community needs while dramatically shifting City operations. Staff <br />anticipates that it will take four years for the City's economic base to recover to FY 2019-20 levels, and the <br />City must address escalating contributions for long-term liabilities associated with retired employees during <br />this same time period. Budget reductions approved in October 2020 will need to continue, though the form <br />of those reductions may change over time. Staff continues to recommend maintaining the existing workforce <br />Page 1 of 28 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />532 <br />