ORINDA — The city of Orinda expects to lose “well over $1 million” because of the coronavirus pandemic, which has resulted in the shutdown of city services and activities, according to a staff report.
“The city’s revenue base is likely to be reduced in a broad range of categories,” City Manager Steve Solomon says in his staff report, which will be presented Tuesday to the City Council.
“My own estimate is that the impact could be well over $1 million on the city’s $16.3 million budget,” he states.
He says the biggest revenue loss will stem from the closure of the city’s Parks and Recreation Department, which includes classes, sports activities, events and rentals. He also expects development fee revenue to fall, as well as sales tax, real property transfer tax, hotel room tax and investment revenue.
Solomon said three vacant full-time positions will be frozen and future vacancies may go unfilled to help offset the loss. He also said the city is not currently scheduling its temporary part-time employees for work.
The city’s capital improvements program will be revised to reduce spending for the rest of this fiscal year and next.
In addition, Solomon has asked all city department heads to find ways to further reduce spending. The staff will make its recommendations to the council in May.
