While the news of the Disneyland Resort’s re-opening next month is encouraging, the coronavirus shutdowns, restrictions on travel and prohibitions of large gatherings have greatly affected our resort district and negatively impacted our city budget.
We are projecting a future rebound in our primary revenue source – TOT (transient occupancy tax), or taxes on hotel visits. However, a presentation given by the city’s finance director at last Tuesday’s council meeting indicated that we could collect around $50 million less in TOT this fiscal year (which ends June 30) and as much as $90 million less in the next fiscal year.
To fill these gaps, we’ll be tapping into the city’s reserves and freezing non-essential spending. Going forward, all options are on the table to address our shortfalls including furloughs and other concessions from our labor groups. We will have to ask every city department to be a part of spending reductions. At the same time, we will work to ensure the city can maintain service levels and continue to protect our communities.
Other funding sources which are on the horizon include revenues from a successful deal with Angels Baseball. This could generate $325 million in cash and community benefits as well as tens of millions in revenue as planned developments come online. In addition, Congress continues to debate additional federal stimulus which may include payments to local governments for budget shortfalls.
The Anaheim City Council will vote on the proposed budget on 6/23/20.
