City of Davis, CA infrastructure projects defunded due to COVID crisis

All are casualties of the COVID-19 pandemic which has hit the city’s budget hard. A shelter-in-place order that has shuttered businesses for months has significantly reduced tax revenue flowing into city coffers, resulting in what the city’s budget consultant estimated to be a loss of up to $22 million over the next four to seven years.

As a result, the City Council this week voted to reduce funding commitments to capital improvement projects by about $8.8 million, including $7.7 million in General Fund commitments, though council members emphasized the projects could be funded in the future.

“The fact that we are deferring some items shows that ultimately we are hopeful that the city gets back on its feet in relatively short order,” said Mayor Brett Lee. “But that doesn’t minimize the steps that we’re taking.”