WAYNESBORO, Va. (WHSV) — The coronavirus is likely to have a financial impact for many people in the Shenandoah Valley, but it's also expected to have an impact on cities as well.
On Monday, Waynesboro City Council and staff met remotely to discuss the budget, which was formalized before major changes were implemented due to COVID-19. City manager Mike Hamp said the budget is probably not a viable spending plan at this time.
In Waynesboro, staff said this budget process will be very different than years past because of COVID-19. Hamp said this process is also very different than budgeting during the 2008 financial crisis.
"This came upon us so quickly, it was little ability to see this, anticipate this in the same way you could anticipate the recession," Hamp said.
He said they are anticipating a financial impact, but it's too soon to say what that impact will be, which can make adjustments difficult.
"As the recession set, you could calibrate and understand and calculate what your revenue impacts were along the way," Hamp said.
He added about 20 percent of their budget comes from meals, lodging and sales tax: all industries that have been impacted by the coronavirus, with many local businesses in those fields forced to temporarily close.
Additionally, Hamp said it can take anywhere from 15 to 45 days for them to know the revenue from those taxes. Because of the lag, they're not sure what the impact has been on that revenue.
"But we're not able yet to quantify that challenge, either in the current fiscal year or forecast that challenge into the next," Hamp said.
For now, a lot of the impact to the budget will depend on duration. The longer there are limitations because of coronavirus, the bigger the impact will be, according to Hamp.
"If you have to contemplate cutting, say we'll say several million dollars out of your budget, there are no obvious or easy places to run to get that money," Hamp said.
He added the city council and staff are likely going to have to make some difficult decisions about what could be cut, so public input is especially important. He said they will work on ways for people to be able to participate, despite not being able to hold traditional public hearings.
Hamp added the city will continue to provide essential services, both during and after the COVID-19 outbreak.
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April 08, 2020 at 05:03AM
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Waynesboro evaluating how COVID-19 could impact city budget - WHSV
"to have an impact" - Google News
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