During its Feb. 23 financial briefing, the city reported that “major revenues are doing better than forecasted.”
The general fund reserves will likely be needed to balance the budget under any scenario.
“This recovery will take time, but the city council can be cautiously optimistic about revenues stabilizing,” the report states.
The report attributes its latest financial picture to higher-than-expected sales tax, transient occupancy tax, and community development fees. It added up to $7.3 million in unanticipated revenue that the city wants to return to the general budget.
The city adopted a budget last June with two different scenarios: bad and worse.
This was done to reflect the economic impact of the CCP virus pandemic.
The bad revenue scenario appropriated $17.9 million in citywide budget cuts, with $9.4 million cut from the general fund, and $1.5 million of general fund reserves.
During the city’s first budget update last September, the pandemic was lifting, schools were reopening and businesses were getting back to work.
Though the city was still trending toward the bad revenue scenario, much of the budget cuts were refunded; $1.5 million was returned to the general fund reserve, and about $900,000 was returned to the general and parking fund balances.