City Budget Bolstered by Federal Stimulus

The city of Burbank will receive its first payment from the most recently passed federal stimulus bill this month, officials said, providing a much-needed influx for the municipality.
City staff told City Council members on Tuesday that Burbank is set to receive the first half of its $26 million portion from the American Rescue Plan Act, which was approved in March, by May 10. The payment, which will be followed by a second remittance within a year after it is disbursed, will mitigate much of the pandemic-related revenue losses reported to the city’s General Fund.
As a result, despite previous projections, the fund’s balance is expected to clear the red by the end of next fiscal year.
Longer term, however, officials said they expect that tax revenue will take time to recover, with financial services director Jennifer Becker projecting that the city will likely see a $6.8 million recurring General Fund deficit in fiscal year 2021-2022. The deficit, reflecting the gap between regular city revenues such as taxes and expenses such as department budgets, is then projected to remain at roughly $3.3 million annually for the four fiscal years thereafter.
But without the federal aid Burbank is expected to receive, Becker said, those gaps could be much worse.
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