The city’s proposed 2020-21 $245.8 million budget is “cautiously optimistic” amid the ongoing COVID-19 pandemic. The proposed budget is approximately $9.5 million smaller than last year’s budget from a general fund perspective. It is a balanced budget that includes $98.3 million for capital projects and no General Fund reserve carryover.
Sales tax revenue is estimated to be down 16.3% for the current fiscal year, and an additional 2.8% for fiscal 2020-21 because of the COVID-19 pandemic. Its hotel tax revenue is estimated to drop by 21%, new Finance Director George Harris said during the presentation.
The City ended the 2018-19 fiscal year with a $33.6 million general fund reserve. That amount is projected to drop about $6.3 million to $27.3 for the current fiscal year due to lost sale tax revenue because of the pandemic as well; as COVID-19 related spending.
The estimated 2020-21 General Fund revenues are $75.2 million. Property tax is the largest revenue generator with an estimated $22.1 million, or 30%. The next highest revenue generator is sales and use tax, estimated at $20 million, or 26% of the budget.
For more information: Antelope Valley PressAntelope valley press
by: julie drake
june 14, 2020