Financial and Economic Outlook City of Lakewood Study Session May - - PowerPoint PPT Presentation

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Jan 12, 2024 97 likes •226 views

Financial and Economic Outlook City of Lakewood Study Session May 4, 2020 Financial and Economic Outlook - May 4, 2020 - Finance 1 Economic Outlook Revenue & Expense Overview Fund balance Questions to consider Next Steps Financial and

SLIDE 1

Financial and Economic Outlook

City of Lakewood Study Session May 4, 2020

Financial and Economic Outlook - May 4, 2020 - Finance 1

SLIDE 2

Overview

Economic Outlook Revenue & Expense Fund balance Questions to consider Next Steps

Financial and Economic Outlook - May 4, 2020 - Finance 2

SLIDE 3

Economic Outlook

US Economy

Q2 GDP 11% decline from 2019
Q3/Q4 starting recovery
End of 2021 full recovery
Unemployment Q2 estimate

15%

Trillions of stimulus

State of Colorado

Reduction of revenue by $7B in

general fund through 2023

2020/2021 $3.2B, 2022 $2.5B,

2023 $1B

Current financial aid $2.5B

Financial and Economic Outlook - May 4, 2020 - Finance 3

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Economic Outlook

Denver

Expecting 12% revenue loss for

2020

Mostly between March and

June 2020

Revenue loss in sales, use and

lodger tax from retail, restaurants and hotels Lakewood

March sales tax

15-20% vs March 2019

Retail/restaurants/hotels

40-50%

New/used cars 33%
Electronic Shopping up 64%

Financial and Economic Outlook - May 4, 2020 - Finance 4

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Financial and Economic Outlook - May 4, 2020 - Finance 5

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Revenues

Evaluating current revenue Funding from Federal and State sources CDBG, CARES, FEMA, Stimulus, JAG Evaluating current revenue structure

Financial and Economic Outlook - May 4, 2020 - Finance 6

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Personnel Programs Capital Projects Other Expenses

Expenditures

Financial and Economic Outlook - May 4, 2020 - Finance 7

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Current hiring freeze – year to date saving approximately $950k Personnel costs account for 74% of the City’s total budget Evaluating all options

Personnel

Financial and Economic Outlook - May 4, 2020 - Finance 8

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Fund Balance

General Fund, CIF, Grants, Other Evaluate reserves level Cash Flow

Financial and Economic Outlook - May 4, 2020 - Finance 9

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Questions to Consider

Reaffirmed City priorities? Evaluate reserve levels? Delay additional spending beyond current budget? Revenue sources?

Financial and Economic Outlook - May 4, 2020 - Finance 10

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Update Plan

Updates will take place every two to three weeks Revenue Expenditures Economic Analysis

Financial and Economic Outlook - May 4, 2020 - Finance 11

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Questions

Financial and Economic Outlook - May 4, 2020 - Finance 12