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

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 Economic Outlook - May 4, 2020 - Finance 2

Economic Outlook US Economy State of Colorado • Q2 GDP 11% decline from 2019 • Reduction of revenue by $7B in general fund through 2023 • Q3/Q4 starting recovery • End of 2021 full recovery • 2020/2021 $3.2B, 2022 $2.5B, 2023 $1B • Unemployment Q2 estimate 15% • Current financial aid $2.5B • Trillions of stimulus Financial and Economic Outlook - May 4, 2020 - Finance 3

Economic Outlook Lakewood Denver • Expecting 12% revenue loss for • March sales tax 2020 15-20% vs March 2019 • Mostly between March and • Retail/restaurants/hotels June 2020 40-50% • Revenue loss in sales, use and • New/used cars 33% lodger tax from retail, restaurants and hotels • Electronic Shopping up 64% Financial and Economic Outlook - May 4, 2020 - Finance 4

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

Evaluating current revenue Revenues Funding from Federal and State sources CDBG, CARES, FEMA, Stimulus, JAG Evaluating current revenue structure Financial and Economic Outlook - May 4, 2020 - Finance 6

Personnel Programs Expenditures Capital Projects Other Expenses Financial and Economic Outlook - May 4, 2020 - Finance 7

Current hiring freeze – year to date saving approximately $950k Personnel Personnel costs account for 74% of the City’s total budget Evaluating all options Financial and Economic Outlook - May 4, 2020 - Finance 8

General Fund, CIF, Grants, Other Fund Balance Evaluate reserves level Cash Flow Financial and Economic Outlook - May 4, 2020 - Finance 9

Reaffirmed City priorities? Evaluate reserve levels? Questions to Consider Delay additional spending beyond current budget? Revenue sources? Financial and Economic Outlook - May 4, 2020 - Finance 10

Update Plan Updates will take place every two Revenue to three weeks Expenditures Economic Analysis Financial and Economic Outlook - May 4, 2020 - Finance 11

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