City of Wichita Fall issued the following announcement on May 20
We know COVID-19 has financially impacted many of our residents. Similarly, the City of Wichita Falls has also experienced a negative financial impact to the budget. Yesterday, our City Manager and CFO provided an update regarding how COVID-19 has impacted this current budget year and will impact the next several budget years. Prior to COVID-19, the city budget was in a good position. There was a fund balance (savings) of $18 million, sales tax and hotel motel tax revenues had both increased and there were low unemployment numbers. Below is a brief update on what was presented.
When COVID-19 began, the city took immediate action to reduce current costs. These changes were able to save $2.7 million in the general fund with minimal impact to the public. They included, but were not limited to:
· A hiring freeze on all positions.
· An immediate decrease in capital project spending.
· Purchasing, travel, and training freezes city-wide.
· Decreased the transit and airport subsidies.
Post COVID-19 Looking Ahead:
· Estimates show it could take up to 53 months to recover.
· Going into next year’s budget, long term cuts will be required. This could potentially include service and cost reductions, restructuring, and downsizing. These cuts may be more impactful to the public.
***It is important to note, the City Manager will not recommend a budget to the City Council with a property tax rate increase. City Councilors will vote on the final decision, but the city budget will be developed and recommended by city staff, so as to live within our means. The full proposed budget will be presented to City Council on July 13.***
Original source can be found here.
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