Understanding the Economic Disruption to Benicia as a Result of COVID-19
The COVID-19 pandemic has created new obstacles for business, employees, elected officials, job seekers, and everyone in the Benicia community. The City of Benicia engaged Dr. Robert Eyler, PhD of Economics, to help us understand what this extraordinary event means for our local economy and our recovery.
The COVID-19 pandemic is having a serious impact on our City’s finances. The Benicia City Council will discuss a staff report with financial forecasts at its May 5 videoconferencing Council meeting.
From the staff report’s introduction: “This financial forecast provides an initial update to the General Fund revenues and expenses due to the sudden impact of the coronavirus pandemic on local revenues. At this time, the projected shortfall for the General Fund for 2019-20 is approximately $2.5 million and for 2020-21 the projected shortfall is approximately $8.5 million.”
The staff report and detailed financial forecasts are included in the May 5 agenda packet (see links below).
14.B – GENERAL FUND FINANCIAL FORECAST IN RESPONSE TO COVID-19 PANDEMIC (Finance Director)
Staff has reviewed the City’s General Fund budget and created an initial financial forecast in response to the novel coronavirus (COVID-19) and its estimated impacts on the City’s local economy. The forecast focuses primarily on the City’s revenues and incorporates information sourced from economic experts as well as financial trend analysis based on the City’s economic history.
Due to the quick-changing nature of information and action from both the State and City in response to COVID-19, staff prepared this forecast to present a potential scenario based on the best available information available at the time it was prepared. The purpose of the forecast is to review and discuss the potential budgetary impacts, with the intent to adjust the budget when staff returns with a mid-cycle budget update in June 2020.
There is no action or budget adjustment associated with this report.
Move to accept the General Fund Financial Forecast for Fiscal Years 2019-2021 as shown in Attachment 1.