What is the impact of COVID-19 on the Town’s budget and services?

In April of 2020, Town staff projected a budget shortfall of $730,000 for the upcoming, 2020-21 fiscal year beginning July 1, 2020.[1] The shortfall was due to COVID-caused reductions in sales tax revenue, along with planning, building and recreation fees. These projected reductions will be partially offset by continued property tax growth. The Town Council will review and update its budget after 6 months.

To help mitigate the projected revenue shortfall, the Town identified one-time or on-going services and project-related cost reductions coupled with personnel cost reductions. The Town Council reduced staff costs by 1) partial hiring freeze; 2) up to 5% pay cuts for all full-time employees; 3) eliminating “cash outs” of sick leave. No currently filled staff positions were eliminated.

The Town’s reserves provided about $27,000 to fill the remaining budget gap. Reserves were reduced to $3.6 million, achieving the Town’s goal of maintaining 20% of the annual General Fund set aside as reserve funding.

 Town Hall is currently opening Monday - Friday from 8:30 am to 11:45 am.


[1] Town of San Anselmo Staff Report for 2020-2021 Preliminary Proposed Budget and Work Plan, ITEM 10 for the meeting of June 9, 2020[1]


Staff Report, June 13, 2020, 2020-2021 Budget and Work Plan, ITEM 9 for the meeting of June 23, 2020


 


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1. What is the impact of COVID-19 on the Town’s budget and services?
2. Why can’t the Town afford to provide a higher level of service, considering the wealth of the community and high home prices?
3. How much of the Town’s budget goes towards pensions, and what are the potential future impacts on the budget and services from growing pension obligations?
4. Measure M failed in November 2019, so what is next to finance some sort of renovation of Memorial Park? Is there any money available in our current budget?
5. What services does the Town share with neighboring cities and agencies? Are there additional options for sharing which could save the Town money and improve its level of service?
6. How much is spent on maintaining roads every year, and who pays for it?