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Regular Meeting PLEASE POST INCORPORATED 1896 1333 Park Avenue. Emeryville, CA 94608-3517 t (510) 596-4300 | f (510) 596-4389 Chair John Bauters Member Dianne Martinez BUDGET AND GOVERNANCE COMMITTEE Regular Meeting Actions taken by Advisory Bodies are not official actions of the City TELECONFERENCE Council, but must be ratified at a 1) Zoom Meeting Information: regular City Council meeting. https://emeryville-org.zoom.us/j/94164375340?pwd=SzVkZVlHVFRPb1RDMnpEZ1RNTTl6QT09 Password 259373. All writings that are public records 2) Audio Only: Call in to 669-900-6833, Meeting ID 941 6437 5340, Password 259373. and relate to an agenda item which December 10, 2020 – 11:00 AM are distributed to a majority of the legislative body less than 72 hours prior to the meeting noticed will be AGENDA made available via email by request the Committee Secretary. 1. Call to Order In compliance with the Americans 2. Roll Call with Disabilities Act, a person requiring an accommodation, 3. Public Comment auxiliary aid, or service to participate in this meeting should contact the 3.1 Submit an Online Speaker Card at www.emeryville.org/advisorybodies Committee Secretary as far in advance as possible, but no later 4. Approval of Meeting Action Minutes than 72 hours prior to the scheduled event. The best effort to fulfill the 4.1 October 8, 2020 Regular Meeting Minutes request will be made. Pursuant to California Governor Gavin 5. Information Items Newsom’s Executive Order N-29- st 20, the City is authorized to hold 5.1 Fiscal Year 2020-21 1 Quarter Financial Update public meetings via teleconferenc- ing and to make public meetings 6. Action Item accessible electronically to all 6.1 Review and Recommend Acceptance of Fiscal Year 2019-20 members of the public seeking to participate in the meeting during Comprehensive Annual Financial Report (CAFR) and Compliance the current health emergency. As Reports such, Committee Members will be participating in the meeting via 7. Future Agenda Items teleconference, and the City will provide various options for the 8. Announcements / Member Comments public to participate in the conduct of the meeting remotely. 9. Adjournment Public comment for agenda items can be submitted online via our new online speaker card at www.emeryville.org/advisorybodies. Written comments can also be submitted by email to the Committee Secretary. If you would like to support, oppose, or otherwise comment on an upcoming agenda item, please send in your comments prior to the meeting as you will be unable to attend in person until the Governor’s stay at home order is rescinded. FURTHER INFORMATION may be obtained by contacting Brad Farmer, Committee Secretary, at 510-596-4352 or [email protected]. The next regular meeting is scheduled for February 11, 2021, at 11:00 AM. DATED: DECEMBER 1, 2020 Post On: DECEMBER 4, 2020 _________________________ Post Until: DECEMBER 11, 2020 Sheri Hartz, City Clerk City of Emeryville Budget and Governance Committee, Regular Meeting Minutes October 8, 2020, 11:00 a.m. Members Present: Staff Present: John J. Bauters, Council Member Christine Daniel, City Manager Dianne Martinez, Council Member Sheri Hartz, City Clerk Lorrayne Leong, Deputy City Clerk Bill Zenoni, Interim Finance Director 1. Call to Order: The meeting was called to order by Chair Bauters at 11:00 a.m. 2. Roll Call 3. Public Comment: None 4. Approval of Meeting Action Minutes 4.1 October 10, 2019 Regular Meeting Minutes – The minutes were approved upon a motion by Council Member Martinez and second by Chair Bauters. 4.2 February 13, 2020 Regular Meeting Minutes – The minutes were approved upon a motion by Council Member Martinez and second by Chair Bauters. 4.3 May 12, 2020 Regular Meeting Minutes – The minutes were approved upon a motion by Council Member Martinez and second by Chair Bauters. 4.4 September 3, 2020 Regular Meeting Minutes – The minutes were approved upon a motion by Council Member Martinez and second by Chair Bauters. 5. Action Item 5.1 Fiscal Year 2020-21 Projected Budget Deficit and Future Budget Strategy Implementation o City Manager Daniel provided the Committee with an overview of the impact of reduced General Fund revenue on the Fiscal Year 2020-21 budget. Ms. Daniel explained that revenue projections included in the amended Fiscal Year 2020-21 budget will not be realized due primarily to greater than anticipated reductions in transient occupancy tax revenue and that the projected Fiscal Year 2020-21 operating deficit has increased by approximately $5 million. o The Committee discussed the revenue projections included in the five-year financial forecast and the projected on-going budget shortfall. o City Manager Daniel discussed several potential strategies which might be considered to address the City’s future funding requirements including the creation of a Lighting and Landscaping Assessment District (LLAD). Budget and Governance Committee – October 8, 2020 Page 2 of 2 o The Committee discussed the staff recommendation to utilize up to $5 million of the General Fund unassigned fund balance to balance the Fiscal Year 2020-21 budget and to explore the creation of a Lighting and Landscaping Assessment District as one potential additional revenue source to address the projected future revenue shortfalls. o The Committee recommended that the City Council adopt the resolution authorizing the allocation of up to $5 million of the General Fund unassigned fund balance as needed to close the projected deficit in Fiscal Year 2020-21 and directing the City Manager to explore the creation of a Lighting and Landscaping Assessment District. 6. Information Item 6.1 Fiscal Year 2019-20 4th Quarter Financial Update o Interim Finance Director Zenoni provided an overview of the General Fund financial report as of June 30, 2020. o Council Member Martinez inquired about any new information regarding hotel and cardroom activity. City Manager Daniel provided an update on the current status of the City’s hotels and explained that staff is currently working with Alameda County to address issues related to outdoor activities, including gaming activities. o Council Member Bauters stated that he was pleased to hear about potential cardroom progress and discussed the impact of hotel and cardroom shutdowns on the employees of those businesses. The Committee asked for information that might be available regarding bargaining rights of those impacted employees to return to their jobs. 7. Future Agenda Items: o The Committee asked for an update to the 2017 discussion on revising City policies and City forms to be gender neutral. City Manager Daniel stated that staff will return with information on what has been done to date and what work remains to be completed. 8. Announcements / Member Comments: Council Member Bauters stated that October 11th was National Coming Out Day. 9. Adjournment: The meeting was adjourned at 11:43 a.m. CALIFORNIA MEMORANDUM DATE: December 10, 2020 TO: Christine Daniel, City Manager FROM: Brad Farmer, Finance Director SUBJECT: Fiscal Year 2020-21 First Quarter Financial Update RECOMMENDATION Staff recommends that the City Council review and accept the quarterly financial report for the period ended September 30, 2020. This report is for information only. BACKGROUND Quarterly financial reports are intended to update the City Council and the community on the City’s financial condition. This report summarizes the City’s General Fund financial performance for the first quarter of the fiscal year ended September 30, 2020, which represents the completion of the 25% of the fiscal year. Revenue and expenditure data for the same period in fiscal year 2019-20 are shown for comparative purposes. Quarterly reports are on a cash basis, meaning only revenues received and expenditures paid by quarter-end are recorded. DISCUSSION The General Fund is the general operating fund for the City. The General Fund supports the City’s vital services and programs including police, fire, public works, development services (economic development, housing, planning, and building), community services, and general administrative services. The analysis below provides information on the major General Fund revenue and expenditure categories. Please note there have been no fund transfers made from other funds during the first quarter as approved in the amended budget to bridge the projected General Fund revenue shortfall due to the pandemic. These transfers will be made later in the fiscal year as needed. General Fund Revenues General Fund revenues for the quarter ended September 30, 2020 totaled $2.8 million compared to $5.7 million received during the first quarter of the 2019-20 fiscal year, a reduction of 50%. The negative fiscal impact of the COVID-19 pandemic has continued into the current fiscal year. Lower activities in different business sectors continue impacting the City’s various major revenue sources including sales tax, transient occupancy tax, licenses and permits, and the cardroom tax. Fiscal Year 2020-21 First Quarter Financial Update Page 2 of 6 Revenues by category are summarized as follows: FY20-21 Actual vs. FY19-20 FY20-21 Actual thru Budget % of Actual thru FY20-21 vs FY19-20 Revenues By Category Budget Sept 30 Variance Budget Sept 30 Variance Sales Tax$ 6,569,300 $ 393,308 $ (6,175,992) 6%$ 736,206 $ (342,899) -47% Transient Occupancy Tax 6,515,600 293,527 (6,222,073) 5% 1,094,850 (801,323) -73% Business License Tax 4,695,700 205,181 (4,490,519) 4% 128,998 76,183 59% Cannabis Tax 360,000 - (360,000) 0% 6,687 (6,687) -100% Utility Users Tax 2,912,200
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