City of Irvine is emerging from Covid-19 in strong financial shape
At the June 8th Council Meeting, Staff made available the Third Quarter Budget Update. The update includes details on how Irvine has fared through the Covid-19 crisis financially. The material was also presented to the Finance Commission in May and a copy of that presentation is available here.
Despite the financial impact of Covid-19 felt across the world, the City of Irvine is emerging from the pandemic in a strong financial position.
Here are some points worth noting:
When Covid struck, the City went to great lengths to contain costs without cutting services or jobs.
Thanks to excellent financial planning in years past, the City of Irvine had a healthy reserve when the pandemic hit, with approximately 25% of the City’s operating budget set aside for emergencies. In the case of Covid, the City drew on the reserve very modestly and the reserve currently stands at 21% — nearly $50 million. This is exceptional considering what the City has been through.
What these slides don’t reflect is that more help is on the way.
As the City, County, State and world open up again, revenue sources that were stalled by Covid are slated to pick-up. Additionally, ample relief funds — notably, the Biden Administration’s American Rescue Plan — are flowing to cities and counties through various Federal and State agencies.
For more information, consult the following links: