The on-going shutdown of business and people movement is having a significant economic impact on the city government as well as local business and residents.
The total sales tax expected to be collected by the city for FY 2020 is $31.8M, of which $17.9M is allocated to the General Fund. The General Fund budget, which funds police, fire, parks and the library among other functions, is $75.9M. Thus, sales taxes provide about 24% of the funds required for the General Fund.
Another category of funding funded by sales taxes is street repair and maintenance to the tune of about $4M.
The largest revenue source in the $378.4M budget comes from utility sales of $143.6M. It is likely those revenues will also not meet projections as many businesses are shut down.
The General Fund expects $8.1M to be transferred in from the Utility Funds. Is that going to be possible with the likely reduction in utility revenue?
The revenue from the hotel occupancy tax is also likely reduced as fewer people are travelling and business and social events have been cancelled.
Capital Projects were budgeted at $69.3M for this fiscal year. These projects are primarily funded using Certificates of Obligation and General Obligation bonds. Are the issuances of bonds going to be reduced or delayed?
As can be seen, this coronavirus pandemic is having a serious impact on city finances. So, the question is: What is the city doing to deal with the likely revenue shortfall?
Hiring freeze?
Capital project delays?
Promotion freeze for employees?
Travel restricted?
Operating hours reduced?
Equipment purchases deferred?
Sale of surplus assets?
Delay the downtown parking garage?
Or, is it spend as usual, using the contingency funds with plans to replenish them with higher taxes and fees in the future?
Is the City Council planning on full transparency with citizen involvement to address this change in city finances?
So many questions and so few answers so far!
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