2020--07 RESOLUTION NO. 2020-07
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND
TERRACE, CALIFORNIA DECLARING A FISCAL EMERGENCY
RELATED TO THE INCREASING SPREAD OF NOVEL CORONAVIRUS
(COVID-19) AND DIRECTING THE CITY MANAGER TO RESEARCH,
REVIEW AND PRESENT TO CITY COUNCIL FOR ITS APPROVAL,
BUDGET CUTS TO MITIGATE THE FISCAL IMPACTS TO THE FY2019-
20 AND FY2020-21 BUDGETS
RECITALS
WHEREAS, on March 4, 2020, California Governor Newsom proclaimed a state of
emergency for California in accordance with Government Code Section 8558(b), as a
result of the global spread of a severe, acute respiratory illness caused by a novel (new)
coronavirus (COVID-19), to prepare for and respond to COVID-19 cases, to formalize
emergency actions already underway, and to implement measures to mitigate the spread
of COVID-19; and
WHEREAS, on March 10, 2020, the San Bernardino County Board of Supervisors,
in accordance with California Government Code 8630, proclaimed the existence of an
emergency due to COVID-19, creating a condition of extreme peril within the territorial
limits of the County, which conditions are, or are likely to be beyond the control of the
services, personnel, equipment, and facilities of the County, and require the combined
forces, mutual aid regions of other political subdivisions to appropriately respond to and
combat the spread and treatment of COVID-19; and
WHEREAS, on March 13, 2020, the President, by the authority vested in him,
including Sections 201 and 301 of the National Emergencies Act, declared the ongoing
coronavirus (COVID-19) a pandemic of sufficient severity and magnitude to warrant a
nationwide emergency declaration; and
WHEREAS, on March 18, 2020, the City Manager, in his capacity as Director of
Emergency Services, proclaimed an emergency in accordance with California
Government Code Section 8630 and Grand Terrace Municipal Code Section 2.28.060,
based on conditions of extreme peril to the safety of persons and property with the City
as a result of COVID-19; and
WHEREAS, on March 19, 2020 Governor Newsom executed Executive Order N-
33-20 ordering all individuals living in the State of California to stay home or at their place
of residence except as needed to maintain continuity of operations of the federal critical
infrastructure sectors, and in effect indefinitely until rescinded by the Governor; and
2020-07 CC Reso Page 1 of 7 April 28, 2020
; and
2020-08 CC Reso Page 1 of 3 April 28, 2020
of 2 May 12, 2020
WHEREAS, due to the threat presented by the COVID-19 pandemic, and the State
of Emergency declared by Governor Newsom, the Local Emergency ratified by this City
Council, and the Executive Order issued by Governor Newsom, all Non-Essential
Businesses in the City of Grand Terrace closed on or about March 19, 2020, and have
remained closed; and
WHEREAS, non-essential businesses include but are not limited to retail shops
and stores for clothing, jewelry, furniture, hair, nail and beauty establishments, barber
shops, dance studios, gyms, all of which generate sales and use taxes, business license
fees — revenues that are part of the General Fund; and
WHEREAS, the City's Licenses, Fees, Permits and Charges for Services include
business license taxes, construction permits, developer activities, programs and activities
that have come to a standstill as a result of COVID-19; and
WHEREAS, on March 24, 2020, the City Council adopted Resolution 2020-05,
ratifying the Declaration and Proclamation of a Local Emergency in response to COVID-
19 in the City of Grand Terrace, as issued by the City Manager in his capacity as Director
of Emergency Services, on March 18, 2020; and
WHEREAS, Governor Newsom has announced a framework for reopening the
state's economy, but has noted the decision will be based on six factors, including the
ability to widely test and trace people who have been exposed to the coronavirus, and the
ability to increase the state's public health infrastructure to address COVID-19; however,
the Governor has not indicated any specific time frame for such reopening; and
WHEREAS, on the basis of Governor Newsom's statements on re-opening the
state's economy, and the timeframe for widespread availability of a COVID-19 vaccine,
continuing disruption to the City's business industry and the associated reduction in
General Fund revenue is anticipated to extend through June 2021; and
WHEREAS, at its meeting of April 28, 2020, the City Council received and
considered a staff report, incorporated herein by this reference, on the current status of
the COVID-19 pandemic and analysis regarding the City's current and projected revenues
and expenditures in light of COVID-19; and
WHEREAS, financial analysis of the economic impacts associated with COVID-19
is difficult to predict at this point; however, staffs estimate identifies a potential revenue
loss of approximately $650,127 for the FY2019-20 budget resulting in a potential deficit
of$545,210 as shown in Attachment A of this Resolution; and
2020-07 CC Reso Page 2 of 7 April 28, 2020
WHEREAS, City staff is projecting a continuing revenue loss of $805,857 in
FY2020-21 with a potential deficit of $1,130,387 as shown in Attachment A of this
Resolution; and
WHEREAS, the City's General Fund reserves, as of March 31, 2020 are $900,000
and are sufficient to cover the $450,000 use of fund balance in FY2010-20; and
WHEREAS, the City's General Fund reserves are insufficient to fully absorb the
anticipated loss in revenue that will occur in FY2019-20 and 2020-21 from the COVID-19
pandemic.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE
DOES RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:
1. The City Council finds that the above recitations, along with the information
and data presented in the corresponding written staff report, verbal testimony, and written
and verbal presentations relating to this matter, are true and correct and are hereby
incorporated herein as part of the record and made a material part of this Resolution.
2. Based upon substantial evidence presented to the City Council, including
the above recitations, along with the information and data presented in the written staff
report, verbal testimony, and written and verbal presentations relating to this matter, the
City Council finds and declares the existence of a Fiscal Emergency directly related to
the continuing threat and existence of COVID-19 in the community.
3. The City Council directs the City Manager to research, review and present
to City Council for its approval, budget cuts to mitigate the fiscal impacts to the FY2019-
20 and FY2020-21 budgets, including reduction measures relating to personnel costs,
operations, service levels, or other measures deemed necessary and reasonable to
minimize further the accelerated and significant reduction to the City's General Fund
reserves.
4. If any section, subsection, sentence, clause, phrase, or portion of this
Resolution is for any reason held to be invalid or unconstitutional by the decision of any
court of competent jurisdiction, such decision shall not affect the validity of the remaining
portions of this Resolution. The City Council of the City of Grand Terrace hereby declares
that it would have adopted this Resolution and each section, subsection, sentence,
clause, phrase, or portion thereof irrespective of the fact that any one or more sections,
subsections, sentences, clauses, phrases, or portions be declared invalid or
unconstitutional.
5. The City Clerk shall certify to the adoption of this Resolution.
6. This Resolution shall take effect immediately upon its adoption.
2020-07 CC Reso Page 3 of 7 April 28, 2020
PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand
Terrace, California, at a regular meeting held on the 28th day of April 2020.
-1 A
kgr- -oe
M. , :
A EST:
e ra L. Thomas
City Clerk'
APPROVED AST M:
Adrian R. Guerra,
City Attorney
2020-07 CC Reso Page 4 of 7 April 28, 2020
said City Council
held on the 28th day of April 2020, and that the same was passed and adopted by the
following vote:
AYES: Council Members Allen, Hussey, Robles; Mayor Pro Tern Wilson;
Mayor McNaboe
NOES: None.
ABSENT: None.
ABSTAIN: None.
Executed this 30th day of April 2020, at Grand Terrace, California.
it(j-;1://1-44-- _
ebra L. Thomas
City Clerk
mas_ := - -=
City Clerk =
Attachment A
Revenue and Expenditure Projections for
FY2019-20 and FY2020-21
2020-07 CC Reso Page 5 of 7 April 28, 2020
-1 A
kgr- -oe
M. , :
A EST:
e ra L. Thomas
City Clerk'
APPROVED AST M:
Adrian R. Guerra,
City Attorney
2020-07 CC Reso Page 4 of 7 April 28, 2020
said City Council
held on the 28th day of April 2020, and that the same was passed and adopted by the
following vote:
AYES: Council Members Allen, Hussey, Robles; Mayor Pro Tern Wilson;
Mayor McNaboe
NOES: None.
ABSENT: None.
ABSTAIN: None.
Executed this 30th day of April 2020, at Grand Terrace, California.
it(j-;1://1-44-- _
ebra L. Thomas
City Clerk
mas_ := - -=
City Clerk =
Attachment A
City of Grand Terrace 1
FY2019-2020 Year-End Projection and 2020-21 Possible_ Scenarios
' [, Exg C j Ex
1
Year- Year- I Year-
Projected Year-End End Projection-1 End Projection-2 i End
Budget Adjustments Projection____; Prof 2020-21 _ Proi ,_ 2020-21 _ L.Pro',
REVENUES .- _,___ + __Property Tax $1,971,250 i ($79,990)_ t $1,891;260 -4% �- $1,796,000 -9% ,_--_-_$1,478,440 -25%
Residual Receipts '
-RPTTF $1,442,400 ; $610 $1,443,010 0% :__-$1,500,000 4% $1,0.81,800 I -25%
' Franchise Fees $534,790; ($97,260) $437,530 1 -18% � $445,000 -17% ! _._$401,100 . -25%
1 Licenses, Fees& ! 1
1 Permits $456,510 ' ($127,420) _ $329,090_ -28% $329,090 -28% $342,400 -25%
' Sales Tax $785,400 ! ($185,370) _ $600,030 -24% ; $600,000 -24% $589,050 -25%
Intergovernmental '
`Revenue/Grants ' $26,500 ! ($2,790) _ $23,710_ -11% - _$20,000 _ -25% __.$19,880 -25%
Charges for - a
' Services $207,900 ($127,600) ._ _ 80,300_ -61% __. __$80,300__ -61% $155,940 -25%
Fines& - u
Forfeitures $72,500 ; $20,410 _$52,090_ -28% $35,100 -52% _ $54,380 1 -25%
Miscellaneous $15,148 $14,638 $510 i -97% i ' $0 ! $1_1,360 1 -25%
Use of Money& i
Property $62,000 $4,740 , $66,740. 8% I $47,500 -23% $46,500 -25%
Transfers In ; $84,450 ' $0 $84;450 0% $0 $63,340 -25%
Wastewater
Receipts $318,349 , 31 $318,350_ 0% $318,350__ 0% _$238,760 -25%
TOTAL
REVENUES ' $5,977,197 ($650,127) $5,327,070 -11% f -$5,171,340. -13% $4.482,950 -25%
!
EXPENDITURES
, Salaries , $1,246,881 ; $10,129 $1,257,010 -1% - $1,257,030 1% $1,257,030 ( 1%_
! Benefits i $842,690 ! 1 (
($15,420) 1 _ $827,270 2% $827,290 -2% $827,290 -2/_
Professional/Cont. ,
Services ' $3,463,996 ($133,266) $3,330,730 4% $3,330,690 -4% $3,330,690 -4%
Materials& 4
Supplies _$255,740$236,217 ; $19,523 -8% _ $255,730 8% �__ $255,730 8%
Lease of - !
Facility/Equipment , $8,000 $11,320 - $19,320 <100% ' $19,320 <100% i $19,320 <100%
; Utilities $145,000 ($1,140) $143,860, 1% $143,860 -1% $143,860_i -1%_
Overhead Cost ! i
Allocation ($87,450) , $0 ,y ($87,450) 0% ._ ($87,450) 0% [ _._,($87,450) I 0%
Transfers Out $125,800L s $125,800 0% P $125,800 0% ! - $125,800 i 0%J
TOTAL
EXPENDITURES ; $5.981,134 ($108.854) $5,872,280 2% {_,_$5,872,270- -2% , $5,872,270 -2%
j REVENUE& EXPENDITURE SUMMARY I _ 1 ,
•
REVENUES ! $5,977,197 ; ($650,127) $5,327,070 -11% $5,171,340 -13% (- $4,482,950 -25%
1 EXPENDITURES ^1$5,981,134) $108,854 ($5,872,280) 1 2% °($5;872,270) -2% ($5,872,270)__1 -2%
, NET ($3,937) ($545,210)_ i -
2020-07 CC Reso Page 6 of 7 April 28, 2020
City of Grand Terrace
FY2019-2020 Year-End Projection and 2020-21 Possible Scenarios T_
--Ti—x_p ' - - - aT ----FLTT
j Year- - Year- I Year-
Projected Year-End. End Projection-1 . End I Proiection-2 End
Budget ' A justments Projection Proi?,2020-21 Pro( t 2020-21 Pro/_
1
Additional Expenditures to consider in FY2020-21 i 1
1. Sheriffs Amendment#27(Schedule A increase) f ($136,457) ($136,457) i _-
2.Absorption of former Child Care program's Unfunded Accrued
Liability(UAL) portion($150k)&overall UAL increase($30k) ($185,000) ($185,000)
3.Annual Debt Service payment to Wastewater Fund for
$900,000 Loan ($108,000) ($108,000)
POTENTIAL DEFICIT I j ($1,130,387) ($1,818,777) j
2020-07 CC Reso Page 7 of 7 April 28, 2020
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO )
CITY OF GRAND TERRACE )
I Debra L. Thomas, City Clerk of the CITY OF GRAND TERRACE, CALIFORNIA,
DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2020-07
was duly passed, approved and adopted by the City Council, approved and signed by
the Mayor, and attested by the City Clerk, at the regular meeting of said City Council
held on the 28th day of April 2020, and that the same was passed and adopted by the
following vote:
AYES: Council Members Allen, Hussey; Mayor Pro Tern Wilson; Mayor
McNaboe
NOES: Council Member Robles
ABSENT: None
ABSTAIN: None.
Executed this 30th day of April 2020, at Grand Terrace, California.
Debra L. Thomas= = - _
City Clerk
j ($1,130,387) ($1,818,777) j
2020-07 CC Reso Page 7 of 7 April 28, 2020