While the city of Cypress is much better off financially than many local governments, a finance official on Monday nevertheless advised the city council that the coronavirus crisis will leave a long trail of red ink in its wake.
“You can expect difficult budget decisions for the foreseeable future,” said Matt Burton, Director of Finance and Administration.
Burton told the Council two weeks ago that a large surplus would likely absorb most of the pandemic’s losses for the current fiscal year. “There have been no major developments since that time,” said Burton, that would indicate otherwise.
Nevertheless, down the road, he said, there will be “budget impacts for several years to come.”
Burton said the city will present a balanced budget for next year, yet it is likely the city will have to dip into a healthly reserve fund to do it.
A survey by the California League of Cities indicates that local governments across the state could lose more than $7 billion in projected revenue because of the impact of the virus, said Burton. Accordingly, he said, budgets across the state will have to be cut from 5 to 20 percent to remain balanced.
Cypress, said Burton, “is in the middle of that range.” “Further losses will continue,” he noted, if the stay-at-home order is extended.
City council member Jon Peat wanted to know if city staffers were working on plans to reopen the city beginning May 1. “Many people are opening cities around the county,” said Peat.
City Manager Peter Grant advised council member Peat that the city has no expressed authority to open the city on their own. “Without a change from state, the city does not have the option or authority to begin reopening,” said Grant.
Conversations were happening at the staff level, said Grant, and who suggested that soon “you can expect to see more focused and serious conversations and how and when”(See Gov. Newsom’s plan, page 12).
Police Chief Rod Cox said the city has established a special email (donut@cypressca.org) address for citizens within the city wanting to request a drive-by for special occasions. He said the police force was getting so many requests that they will now be coordinated by the community outreach officer.
It was the first time the city met using a video conferencing program. Alisha Farnell, city clerk, said it offers a “better option” for citizens who wish to participate. The city had been meeting by telephone conference call since the coronavirus lockdown began.
Farnell said online citizen engagement with city hall during the crisis has been extraordinarily high, much higher than normal. “They are listening,” she said, adding that city staff was doing everything possible to safely respond to records requests and other citizen needs.
In other action, the Cypress council:
• Heard Grant respond to a question from Mayor Rob Johnson noting that authorities had to “tactically enforce” social distancing guidelines at one local business that was “excessively flaunting” them. He said all such complaints,however, should be directed to the OC Healthcare Agency, not the city.
• Heard Recreation and Community Services Director Cameron Harding saw all summer events, as of now, were scheduled to continue. He said another assessment would be made at the end of the month. He said the Salute to America event could be moved to later in the year.
• Community Development Director Doug Dancs said the department was in full operation, though remotely, saying 60 permits were issued, 170 inspections completed, and park restroom projects were complete. He told Council member Stacy Berry that he would doublecheck to ensure the city’s waste pickup effort was being performed in compliance with pandemic guidelines.
