2021 PATRICIA LOCKE-DAWSON STATE OF THE CITY ADDRESS

Home

represented and hopeful because they have opportunities, knowing those opportunities are limitless. This is the Riverside that I envision, and it is one that I know we can attain together. A Riverside where we work Together Towards Tomorrow. A tomorrow defined by: STABLE FINANCES Riverside has always been a beacon of prosperity. But, like every municipality across the state, our city is facing sizable pension obligations that demand our attention. And we also have a structural deficit of $14.5 million. As your mayor, I will always be honest with you, sharing the real challenges we face --I believe you deserve nothing Tess. We know these are uncertain economic times, and we feel it on a daily basis. Just as your household budget may be feeling the strain of the pandemic, the City's budget faces similar obstacles, on a much larger scale. The economic impact of the pandemic is still unfolding as I share this information with you tonight. Clearly there are still trials ahead. But we've also taken action to stabilize our finances and get us to where we need to be: A tightened spending plan saved $7.6 million in non -personnel, special programs and minor capital work. We made the tough choice to institute managed hiring and suspend scheduled raises. Recruitment was suspended for 137 empty positions, which resulted in a $13.6 million savings for the year. The City is also implementing priority -based budgeting which will direct funding to City programs and departments deemed most critical by you --the residents and taxpayers. This will be vitally important in a time of limited resources, and we will need your input. My top priority is to work with our business and labor leaders to balance the City's budget and resolve our pension debt crisis. In addition to priority -based budgeting, I propose a three - pronged approach for fiscal success: • Continue to explore refinancing existing city debt so what we have borrowed does not cost as much. • Explore a Budget Stabilization Effort similar to what we accomplished during my tenure on the Riverside Unified School District Board of Education. This will allow us to work with stakeholders to stabilize City finances while minimizing service disruptions. • And third, generate new revenue, since we cannot cut our way out of this crisis. We will have to grow our way out --not through taxes, but by attracting investment and fostering business growth. The good news? The pandemic was actually expected to have a more negative financial impact. Sales tax revenue for the fiscal year came in above pandemic expectations, allowing the City to meet adjusted budget targets.