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Ms. Neel provided a FY20 Revenue Recap, which includes the following: <br />• Fiscal Year (FY)20 Original Budget Revenue: $86.3M <br />• Projection as of April: $78.7M, $6.4M shortfall (after rebates), this is due to: <br />— Pandemic outbreak, disaster declaration by federal, state, and local <br />authorities <br />— Businesses are required to close <br />— Unemployment hits record levels <br />• Projection as of June: $82.4M, $2M shortfall (after rebates), this is due to: <br />— March sales tax as the results exceed projections. There was a large increase <br />in economic development rebates <br />— Businesses reopened <br />• Projection as of August: $90.9M, $1.3M shortfall (after rebates), this is due <br />to: <br />— April sales tax and it continue to exceed projections. Much larger economic <br />development rebates due to increased sales tax <br />Ms. Neel provide the FY20 Expenditure Reductions, which include: <br />— Personnel: $1.8M <br />— Contract Services: $610K <br />— Materials & Supplies: $1.3M <br />— Capital Outlay: $500K <br />There are known future financial constraints and it is the City's fiscal <br />responsibility to ensure revenues can support recurring expenses as we <br />approach known reductions in General Fund revenue in the coming years. <br />— FY22: Comptroller ruling on internet sales tax collection to the point of <br />destination (potential $3M reduction after rebates) <br />— FY23: S132 property tax cap at 3.5% (potential $600K-$1 M reduction) <br />Ms. Neel discussed the budget policy direction for FY21 and highlighted the <br />status, these include: <br />• Maintain fund balance at 25% - this was reduced to 20% due to pandemic <br />• Tax rate not to exceed Voter Approval Rate - Council adopted special <br />taxing unit calculation of 8% growth <br />• Zero based budgets for all department operating expenses - this has been <br />completed <br />• Social services, museums, city hosted events fully funded - this has been <br />included <br />• Refinance TIRZ #2 Blanco Vista - this is in process <br />• Parks & Recreation fees effective September 1st - this has been postponed to <br />January 1, 2021 <br />• Development Services cost of service study FY20 - this was postponed to FY21 <br />• Other fees increased by Consumer Price Index (CPI) - this is included <br />City of San Marcos <br />