Council Projects Optimism Despite Gloomy Budget Outlook

Photo by Christian Leonard / Burbank Leader
A woman enters municipal headquarters, where the Burbank City Council was reminded this week that the General Fund will be in the red by the end of the 2021-22 fiscal year unless measures are taken.

The Burbank City Council appeared confident this week that the municipality would find ways to address a projected General Fund deficit caused by the pandemic, though it is not yet clear what a budgetary response would look like.
The city does have some time to figure out its next steps; as staff members reminded the council on Tuesday, the recurring General Fund balance is not expected to be in the red until about June 2022, that fiscal year’s end. At that point, recurring expenses are projected to surpass revenues by $4.1 million.
The annual deficit, according to city projections, will then shrink to $1.9 million in fiscal year 2022-23 and $2.8 in 2023-24, before widening again to $4.3 million in 2024-2025.
“Even though the five-year projections show recurring deficits,” Councilman Jess Talamantes said during this week’s meeting, “it’s not 10s and 15s and 20s [of millions].” He added that it was up to city staff members to determine a budgetary course of action.
Councilman Tim Murphy also pointed out that other cities have announced layoffs due to the economic impacts of the coronavirus.

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