Though the City of Carpinteria is facing significant budget cuts, the City Council reviewed a proposed budget on Monday evening that will support existing service levels and important projects and programs in the coming year.
Council members considered the impact of the COVID-19 pandemic on the current and upcoming fiscal years. Stay-at-home orders aimed at slowing the spread of the virus have resulted in revenue reductions from several sources. Sales tax and transient occupancy tax (bed tax), two of the City’s major funding sources, have declined sharply.
Funding for the current year is expected to decline by approximately $1 million. Though the severity and length of the pandemic’s economic impact remains unknown, the City is projecting a reduction of nearly $1 million for the coming year as well. Revenues to the General Fund, which supports most City operations and services, are expected to decrease from $10.1 million to $9.3 million.
The existence of healthy fund balances and reserves will help the City withstand the impact of the pandemic. Additionally, cost-saving measures have also been implemented this year and are planned for the 2020/21 fiscal year. Efforts to reduce expenses include deferring work that is not time sensitive and partially extending a hiring freeze implemented early in the pandemic.
City Council members were supportive of the proposed budget, which they will consider in draft form at their June 22 meeting.
For budget details and to view the City Council meeting, visit https://bit.ly/3f4V6g4.