IMPACT OF COVID-19 on City of Mesa's FY2019/2020 ::Trajectory For City Projects Scaled-Down > CITY'S FINANCIAL STATUS & FORECAST /Proposed Deferrals

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Item 1-a 
File #20-0447 
Hear a presentation, discuss, and provide direction on the impact of COVID-19 on the City’s financial position, forecast, and budget modification recommendations, focusing on project deferral recommendations
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File #:

20-0447

Type:

Presentation

Status:

Agenda Ready

In control:

City Council Study Session

On agenda:

4/9/2020

Title:

Hear a presentation, discuss, and provide direction on the impact of COVID-19 on the City’s financial position, forecast, and budget modification recommendations, focusing on project deferral recommendations.

Attachments:

1. Presentation - Financial Status, 2. Presentation - Project Deferral Recommendations, 3. Listed Project Delay Recommendations

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FINANCIAL UPDATE 
COVID-19 FINANCIAL IMPACT 
APRIL 9, 2020 (15 Slides Power-Point)
City of Mesa 
Candace Cannistraro: Management & Budget Director 
Brian Ritschel: Management & Budget Deputy Director
TIERED RESPONSE STRATEGY
■ Initial Response 
– Identify available reserves, set-aside funds 
– Pause on adding on-going expenditures or obligations 
– Freeze Vacant positions and salary adjustments 
– Pause unobligated capital projects/improvements 
■ Short-Term Response (45-60 days) 
– Departments with Closed Facilities 
   ■ Parks, Recreation, and Community Facilities 
   ■ Libraries 
   ■ Arts and Culture 
– Monthly reviews to assess health and economic conditions to possibly open the facilities earlier 
■ Mid-term Response (60-90 days) 
– Citywide review of all funds and operational expenses 

slide 10:
Citywide Impact on General Governmental Revenues 10 Revenue Impacts (Major Revenues) FY 19/20 FY 20/21 Spring 2019 Forecast $ 289,988,000 $ 292,532,000 April 2020 Forecast $ 283,416,000 $ 287,180,000 Difference $ (6,572,000) $ (5,352,000) Lost PRCF Revenues Due to Closures (Apr-Sep) $ (1,800,000) $ (2,900,000) Total Impact to General Governmental Forecast $ (8,372,000) $ (8,252,000)

SLIDE 13
Impact on Mesa’s Economy: General Governmental Revenues
Revenue Impacts (Major Revenues) FY 19/20 FY 20/21

• February 2020 Forecast (not presented to Council) $ 300,570,000 $ 310,093,000
• Spring 2019 Forecast $ 289,988,000 $ 292,532,000

Estimated Gain in Revenues $ 10,582,000 $ 17,561,000
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PROJECT DELAY LIST - 2 PAGES
Total Deferral FY 2020/21 7,655,000
Proposed Breakdowns 

City of Mesa Office of Management and Budget Capital Improvement & Lifecycle Programs COVID19 Project Delay Recommendations 

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Communications/Technology - FY 2019/20

Subtotal for Deferral 1,530,000

Facilities Maintenance - FY 2019/20
Subtotal for Deferral 2,982,000

Parks & Culture - FY 2019/20
Subtotal for Deferral 1,037,000

Public Safety - FY 2019/20
Total Deferral FY 2019/20 6,116,000

Communications/Technology - FY 2020/21
Subtotal for Deferral 1,202,000

Facilities Maintenance - FY 2020/21
Subtotal for Deferral 990,000

Parks & Culture - FY 2020/2021
Subtotal for Deferral 1,649,000

Public Safety - FY 2020/21
Subtotal for Deferral 3,814,000

Total Deferral FY 2020/21 7,655,000