Several city funds lost revenue due to COVID and city staff are recommending to use some of the city’s federal relief dollars to replenish those funds.

The funds that lost revenue are enterprise funds, meaning they rely primarily on fees from services, and the services and programs they offer were cut during the pandemic.

City conducts quarterly budget review; plans to use some CARES Act funds to replenish losses

Those funds are parking, Civic Center Events, Ice Breaker, recreation, multi-sports and swimming pools. Some of them receive a subsidy from the general fund, which is tax dollars and the primary supporter of the public safety budgets.

Staff has been saying in public meetings for months that they would recommend using at least some of the CARES Act money to replenish the revenue lost due to COVID, otherwise other actions will be needed such as raising fees, cutting services or increasing the general fund subsidy.

City accepting grant applications for COVID relief funds

During the Feb. 1 Commission work session, staff reviewed the budget and the funds that had COVID specific losses.

Staff is proposing to use the following amounts of CARES Act funds to replenish those funds:

The city calculated the lost revenue through June 30, 2021 and it may need to be done again in the upcoming budget process if the funds have continued lost revenue due to COVID, according to the staff report.

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“The majority of these funds were struggling before COVID, and this budget amendment does not address those short falls. This budget amendment also does not address any replenishment of general fund unreserved fund balance or other general fund needs,” according to the staff report.

Using CARES Act dollars to replenish these funds leaves the city $9,018,012 of its allocation to be used for other purposes.