Long Beach, CA
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File #: 21-1061    Version: 1 Name: FM - FY 21 Mid-Year Budget Performance Report
Type: Agenda Item Status: Approved
File created: 8/24/2021 In control: City Council
On agenda: 10/12/2021 Final action: 10/12/2021
Title: Recommendation to receive and file a Fiscal Year 2021 (FY 21) Budget Performance Report providing an update on the City’s FY 21 financial status and projections for year-end. (Citywide)
Sponsors: Financial Management
Attachments: 1. 101221-R-21sr&att.pdf
TITLE
Recommendation to receive and file a Fiscal Year 2021 (FY 21) Budget Performance Report providing an update on the City’s FY 21 financial status and projections for year-end. (Citywide)

DISCUSSION
Overall Summary

This report provides a preview of the potential FY 21 year-end projections along with a disclosure of outstanding variables that may impact the final fiscal year-end result, which will be reported in the Year-End Performance Report planned for February 2022 (per normal schedule). These year-end projections are based on department analysis of data as of May 31, 2021 (the most recent available analysis completed, due to timing and staffing constraints) and some more recent data and analysis on major revenues. The attachments show actual budget performance (actuals) through July 31, 2021.

This report for FY 21 reflects a year-end projection that has more variables and volatility of potential outcomes than normal years given the level of new factors that could impact budget performance due to the pandemic. The FY 21 budget was established during the start of the pandemic when Long Beach, along with all other cities in the nation, faced tremendous uncertainty as to how the pandemic would impact the economy and the City’s finances both on the revenue and expenditure side. When the FY 21 budget was proposed and finalized, the economy was in a recession and it was uncertain how severe the downturn would be and how long it would last.

Taking into consideration this context and variabilities, this report shows optimistic trends that indicate the overall fiscal impact of the pandemic will not be as severe as previously anticipated. For the General Fund, the projections in this report are showing a small operating surplus of approximately $0.5 million. However, there are many outstanding variables, and it is possible that the final General Fund status could swing to be an operating shortfall or even a greater operating surplus. For Measure A, the recent...

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