Beverly Hills City Council To Tackle Coronavirus Budget Shortfall

BEVERLY HILLS, CA — Beverly Hills City leaders will gather in a virtual council meeting Tuesday night to delve into the stark new economic realities facing the city as a result of the coronavirus pandemic.

At the 7 p.m. meeting, the City Council will hear a report from the City Finance Department outlining the need to asses the $381.1 million in total revenue projected in the Fiscal Year 2019/20 budget. With the fall off in tourism revenue, the city is likely to face major shortfalls, and City leaders will examine whether to continue paying city employees past the end of April.

According to a City staff report, the pandemic has decimated tourism and retail, so the City will likely face an acute shortfall on the projected $51 million in revenue from the city’s Transient Occupancy Tax (TOT), a 12 percent tax on guests in hotels, motels, and short-term rentals like Airbnb. The City is also likely to fall short of the the projected $35.4 million from sales taxes. At the last meeting, the Council agreed to defer the TOT remittance due date for the months of February through April to four months following the original collection date.

The Council will also likely debate whether to continue paying its roughly 1,000 employees past April 24, Public Information Manager Keith Sterling told the Beverly Hills Courier.

"While we are still in the midst of the COVID-19 pandemic, we are aware of the long-term fiscal impacts upon our businesses and residents," Mayor Lester Friedman told the Courier last week. "As we prepare for the future, City Council is beginning to address the anticipated financial shortfalls we will face. The Council will examine strategies to maintain the fiscal health of our City while cognizant of the service levels our community expects and deserves."

The full session will be available, along with past sessions, on the city’s website.