CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Receive the September 2020 Financial Report
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City, region, and nation continue to experience the ongoing economic effects of the COVID-19 pandemic that began in mid-March. To provide current data in order to make strategic financial decisions at the appropriate time, staff is presenting a financial report to the City Council at its second meeting of each month.
In August, Council approved the temporary removal of use restrictions on Food and Beverage and Home Rule Sales Tax revenues to move towards the goal of financial flexibility through 2020 and 2021. This followed Council direction to staff in July to develop actions as necessary to further the goal of financial flexibility and maintaining core services at current levels.
DISCUSSION:
New Information
Ongoing developments continue to shape the pandemic's financial impact on the City. Since the August 18 Council meeting, the following new events occurred:
* Will County mitigation measures required: A COVID-19 positivity rate exceeding 8% for three consecutive days triggered additional state-mandated mitigation measures for Region 7, which includes the Will County portion of Naperville. The additional measures include the rollback of indoor restaurant and bar service and limiting gatherings to 25 people. These additional measures initially took effect on August 26 for 14 days; as of September 10, although the positivity rate has decreased, it does not meet the threshold to rollback the additional mitigation measures, which will continue to be in effect.
* Electric cost increasing: The Electric Utility is experiencing higher than budgeted power costs from the Illinois Municipal Electric Agency (IMEA) as electricity consumption across the agency is down and fixed costs are being spread over a lower number of kilowatt-hours. Revenue to...
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