Livermore Plans For Budget Shortfall, Big Construction Projects

LIVERMORE, CA — It's hard to predict how long Livermore's economy will take to recover from the coronavirus pandemic, but the city expected to see budgetary shortfalls in the years to come.

Still, Livermore believed that it's well-positioned to recover from tax losses and unplanned costs incurred over the past year. General fund reserves are projected to decrease by about $10 million by next fiscal year, but the city expected its reserve will be about $57 million next year and $54 million the year after that — far more than the city requires in reserves.

That's according to a new report from City Manager Marc Robert's office, which the Livermore City Council will discuss at its Monday special workshop meeting.

The report laid out the city's financial plans for the next two fiscal years. The council will also see which capital improvement projects the city deemed high priorities in the same time frame.

Fiscal year 2022 begins July 2021; fiscal year 2023 ends June 2023.

Livermore saw a $5 million surplus in its general fund budget last year but anticipated shortfalls this year and in at least the next two years as a result.

The current fiscal year will likely see a $3 million shortfall. The shortfall is expected to grow to $10.4 million next year and to shrink back to $3 million the following year, according to the report.

Livermore will see relatively a modest and continued increase in revenue in the years to come, according to the report. That should help offset continued increases in operating expenditures this year and in the next two years.

Capital improvement expenditures are projected to more than double in the fiscal year ahead. The city planned to invest $22 million to revitalize downtown Livermore in that time frame.

The city's highest-priority construction projects include the following.

• Expansion of the Livermore Civic Center Meeting Hall.
• Improvements to walls and culverts citywide.
• Livermorium Plaza at Mills Square Park.
• Expansion of the I Street Garage.
• Installation of automated license plate readers.
• Stockmen's Park.
• Expansion of downtown bike parking options.

Livermore must grapple with a sharp decline in sales and hotel tax revenues in the short term, Roberts said. Sales tax projections were reduced by 18 percent, or $6.8 million, in this fiscal year. Hotel tax revenues were reduced by 35 percent, or $1.6 million.

The city incurred unplanned costs during the pandemic, including the following, Roberts said.

• A $2 million grant program to support local businesses.
• $1.6 million to staff the city's emergency operations center.
• $100,000 for the Tri-Valley's drive-thru testing center at the Alameda County Fairgrounds in Pleasanton.
• $280,000 for protective gear and cleaning supplies.
• $417,000 for temporary shelter for vulnerable community members.

Listen to a presentation of these reports at Monday's 5 p.m. council meeting. Watch it on YouTube or tune in via Zoom.

View the full list of infrastructural projects planned here, and read the city's financial report here.