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MINUTES OF THE FINANCE COMMITTEE May 11, 2020 Online Broadcast Meeting Present: Councilmembers Bullock, Litten, &Neff Also Present: Councilmembers Kepple, Rader, & Shachner, Finance Director Rancatore, Mayor George, Chief Dunphy, a couple members of the public, Clerk Bach, & Deputy Clerk Lascu taking minutes Start time: 6:03 p.m. AGENDA City of Lakewood financial forecast and development of comprehensive City financial policies for COVID-19 response. Chairman Bullock opened the meeting allowing opening questions from councilmembers and opening statements by the Mayor and Finance Director. Councilmember Litten noted that based on the April 30th tax receipt numbers received by Council,the city has collected about 74% of the revenue that it would have at this point of the year compared to past years. He wanted to know how much of that is a loss and how much of the difference can be attributed to tax day being moved later into the year. Mayor George stated that her administration was aware that the city's revenues would take a substantial hit in April, as that was when the shut down and stay at home order began. Director Rancatore reviewed various documents provided to Council giving insight into the city's revenues. He noted that the city's municipal income tax comprises 55% of the city's 2020 budget. Traditionally,April has been the most important month in the tax collection cycle due to the normal tax due date being April 15th. The city is down $2.8 million in the income tax category as of the date of the meeting. In March the city's income tax was up 1.6%, but weaknesses started to show within that month. Director Rancatore noted withholding tax comprises 38% of the income tax, and that it is up 5.3% over what it was last year. That figure dropped 5%below last year's level in April. Coming into April, the net profit category was up 3.7% for the year and after April net profit is down 35%. Individual income tax makes up about 56% of total income tax. That was up 2.7% in the first quarter and a 71% decrease in April,which nets out to about a 42% decrease over the first 4 months of the year, compared to last year. Director Rancatore stated that the due date for taxes has changed from April 15th to July 15th. The tax revenue collection cycle is based on actual tax liability,the ability of the taxpayer to pay, and the ability of the city to collect. Theoretically,the city should receive all the funds due to it by July 15th for the year 2020,but that is not going to happen because