The Beverly Hills City Council is expected to consider approving the fiscal year 2020-21 capital improvement budget during its meeting on Aug. 4.

While the city continues to pursue capital improvement projects identified as priorities, the sudden and significant economic impact of COVID-19 necessitated that the city take steps to preserve the health of its fund balance and identify areas where reductions in costs could be achieved to mitigate the severe decline of the city’s revenues resulting from the global pandemic.

The proposed Capital Improvement Program budget for fiscal year 2020-21 addresses the city’s capital improvement needs over the next five years to ensure that streets, public buildings, parking facilities, parks, sewer, storm water and water infrastructure are well maintained for maximum safety, functionality and attraction. The CIP budget provides capital funding of $74.1 million in fiscal year 2020-21 and a five-year projected funding of $376.5 million. The total funding, including the fiscal year 2019-20 revised budget, is $661.6 million. The CIP budget is composed of 21 city funds, a total of 101 active projects and five projects that were completed and/or closed before fiscal year 2020-21.

Working with the City Council’s COVID-19 Budget Ad Hoc Committee, staff identified over $30 million in CIP project funds which could be reduced in fiscal year 2019-20, of which $24.4 million were ultimately recommended by the ad hoc committee and have been included in the proposed capital improvement budget. These reductions facilitate the transfer of $6 million from the infrastructure fund to the general fund in the fiscal year 2020-21 operating budget. The remaining amount is proposed to be used to help fund the five-year CIP plan.

In addition to the proposed reductions, project managers also cut back their initial proposals of five-year plans for fiscal year 2020-21 through fiscal year 2024-25 by nearly $52 million from approximately $428 million to the $376.5 million presented in response to the strain on the city’s fiscal situation due to COVID-19. Examples of such cuts include eliminating the $11 million proposal for the development of 336 Foothill Road for a commercial process and the reduced annual provision from $3 million to $1 million for the city’s vehicle replacement program in fiscal year 2020-21, as Fleet Management determined that all vehicle replacements funded by the general fund could be put off for one year.

This effort ensures that the city’s funds can adequately support its most essential projects over the next few years in the midst of great uncertainty and allows the city to regularly reevaluate its plans for capital improvement projects as more information becomes available regarding the timing and degree of the future economic recovery.

For information, visit beverlyhills.org/cbhfiles/storage/files/1003265069619954230/FY20-21Book.pdf.