Three months ago, City Hall was happily stuffing $12 million into savings accounts while enthusing about how the city’s economy in the 2019-20 fiscal year had proven more robust and resilient than anticipated during the pandemic.

Now as the pandemic wears on, Mayor Levar M. Stoney’s administration is singing the financial blues and starting to tap savings to try to keep the current 2020-21 budget from plunging into the red.

On Monday, Richmond City Council quietly authorized the administration to take $9.37 million from the budget stabilization fund — nearly half of the accumulated funds — and to cut $1.75 million in spending to help maintain the required balance between income and expenses.

The unanimous 9-0 vote came as the council looks ahead to Friday, March 5, when Mayor Stoney will present his budget proposal for the 2021-22 fiscal year that begins July 1.

City Budget Director Jay A. Brown already had raised warning flags.

In late January, he indicated the budget preparations began with projections that income would fall $37 million short of projected expenses.

As council Vice President Ellen F. Robertson, 6th District, put it, “We don’t know yet what that will look like,” but it is not a signal of happy days ahead.

In the current fiscal year, Mr. Brown noted that revenues from meals, lodging and admissions taxes have shrunk with COVID-19 still hammering restaurants and hotels and blocking concerts and other events.

In the current budget year, according to new reports, the city is projecting a $16 million drop in revenue from those taxes. And while other revenue increases, notably from taxes on real estate that continues to increase in value, the increases are not large enough to offset the decline.

To save money, the city has continued a hiring freeze and halted virtually all discretionary spending. But there are some jumps in expenses that need to be offset.

For example, the Richmond Fire Department is projected to be more than $2 million over budget because of increased overtime to make up for retirements and vacancies.

Another example is the Department of Public Works, which is about $8.2 million over budget. One reason is the $1.8 million Mayor Stoney took from Public Works to pay for removing Confederate statues.

Public Works also has faced an unexpected $6.2 million increase in cleaning costs for municipal buildings because of COVID-19 and is facing a $500,000 increase in trash collection costs, it was explained, due to homebound residents creating more refuse.