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File #: [21-0273]    Version: 1 Name:
Type: Discussion Item Status: Filed
File created: 3/26/2021 In control: Town Council
On agenda: 3/31/2021 Final action: 3/31/2021
Title: FY 2021 Budget Update and Preliminary FY 2022 Budget Discussion.
Attachments: 1. Draft Staff Presentation, 2. Staff Presentation, 3. Council Questions with Staff Response
Related files: [21-0527], [21-0449]

FY 2021 Budget Update and Preliminary FY 2022 Budget Discussion.

Maurice Jones, Town Manager
Manager's Office
Amy Oland, Director
Business Management

Key Topics: At the March 31st work session, staff will present an update on the current state of the FY 2021 budget and share preliminary projections for development of the FY 2022 budget. We will also briefly discuss the American Rescue Plan Act of 2021.
FY 2021 Budget Update
Staff will provide FY 2021 financials through the end of the 3rd quarter. We will focus on the Town's largest revenue sources and those most impacted by the COVID-19 pandemic. Revenues will include: property tax collections, which are generally on-trend with past years; sales taxes, which have been erratic month-to-month through the first six months of this year, but are overall trending in a positive direction; occupancy taxes, which are significantly down over prior years; and department fees, with a focus on parks and recreation charges for services, which have also been negatively impacted due to facility closures and cancelled programming. The nature of this past year means identifying trends and making projections for next year is difficult, but it is fair to say that our conservative approach to budgeting, including our hiring freeze and budget cuts, means that we are likely to break even at the end this unprecedented year.
Developing the FY 2022 Budget
The Council began discussing budget priorities at their February 2021 retreat and the Manager has begun reviewing department budget presentations. As we collect new data about the end-of-year financials, staff will work with the Council in a series of discussions and updates to develop the Manager's recommended budget. The Orange County property tax revaluation will be a key factor in the FY 2021-2022 budget. The anticipated increase in property values is one opportunity for the Town to fund new initiatives and to address long-standing maintenance a...

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