HomeMy WebLinkAboutCouncil Presentation 09/01/2020-FY 2020-2021 Monthly Update RevenuesFiscal Year
2020-2021:
Monthly Update
Revenues
ITEMS FOR DISCUSSION
Current State of Economy
Revenue history, April-June
July revenue update
BUDGET BRIEFING
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BACKGROUND
COVID-19 caused GDP to fall by 32.9% in the second
quarter ended June 30, 2020
Unemployment stands at 10.2% nationally (July) and
10.0% in AZ (June)
Federal relief funds help keep economy afloat, but
continuation is uncertain
Economic recovery still uncertain without proven
vaccine or therapeutic solution expected for months
BUDGET BRIEFING
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FY2021 INDICATORS
Real-Time Indicators & Trends
Marana Hotel Occupancy rate fell by 10.2% ( July Year over Year)
Marana Hotel Revenues declined by 11.6% (July Year over Year)
Housing Permits still being issued but future is uncertain
855 issued in FY2020 vs 802 in FY2019
205 issued April –June 2020 vs. 256 in April –June 2019
103 issued in July 2020 vs. 83 in July of 2019
BUDGET BRIEFING
Sources: STR Report, JLBC, Marana Development Services 4
F/Y 2020 Projections vs. Actuals
April-June actual revenues compared to pre-pandemic
anticipated projections
BUDGET BRIEFING
Category Projected change Actual change
Sales Tax
Retail -50%+6%
Utilities & Insurance -20%+12.6%
Construction -40%Unchanged
Restaurants & Bars -65%-20.1%
Hotels -65%-38.2%
Intergovernmental
State Shared Sales Tax -50%+13.1%
Auto Lieu Tax -35%+10.6%
Development Related -50%-5%
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April –July Revenues
General Fund Sales Taxes
BUDGET BRIEFING
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
April May June July
Sales Taxes - Pre-COVID Projection Sales Taxes - COVID19 Projection Sales Taxes - Actuals 6
July General Fund Collections
Year On Year Comparison
BUDGET BRIEFING
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
2019 Actual 2020 Budget 2020 Actual
*Some hotel sales tax payments were deferred for the months of April-June and were paid in July.
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Revenues are better than anticipated
Still early to determine the future which will depend on
Federal relief funds
Virus solution (Vaccine or therapeutics)
Effectiveness of current measures
Stay the course while uncertainty remains
Continue to monitor revenues
BUDGET BRIEFING IN SUMMARY
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DISCUSSION
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