TITLE
Recommendation to receive and file a description of the City’s services and high-level service level options as part of Service Priority Budgeting. (Citywide)
DISCUSSION
As part of the Adopted FY 21 Budget, the Mayor and City Council directed the City Manager to evaluate and begin a zero-based budgeting approach for FY 22 with earlier community outreach and participation. This direction was done prior to the discussion and award of the federal American Rescue Plan Act funds. The City was facing a significant shortfall in FY 22, and this process was intended to provide greater transparency and education on the budget and begin the dialogue with the community earlier in the budget process. To address this initial request, a Service Priority Budgeting (SPB) process that incorporates zero-based budgeting elements along with more robust and earlier community engagement was developed.
Now, the American Rescue Plan Act will provide substantial one-time federal funds that are anticipated to cover the General Fund shortfall in FY 22 and be of substantial help in maintaining services for FY 22. The American Rescue Plan Act funds were incorporated as the key funding source for the Long Beach Recovery Act approved by the City Council on March 16, 2021. As a result, the City is not anticipating major service reductions to occur in the FY 22 budget. The Long Beach Recovery Act is expected to provide a “relief” year to allow the City, its residents, and businesses to begin recovery from the adverse pandemic impacts, and also to provide time for the City to make thoughtful and strategic plans for expected substantial shortfalls and future budget challenges beyond FY 22.
As a result of the expected funding of current services in FY 22 by the Long Beach Recovery Act using federal funding, the normal SPB process has been modified to greatly simplify the content but still provide basic departmental service information. This allows City services to be viewed in more detai...
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