A FedEx delivery driver walks into Evansville’s Civic Center to drop off a package with security guards inside the front entrance Tuesday afternoon, March 17, 2020. The Civic Center is currently closed to the public to slow down the spread of COVID-19. SAM OWENS/ COURIER & PRESS
EVANSVILLE -- Mayor Lloyd Winnecke said he will ask City Council to reopen the 2020 city budget and repeal or freeze some items.
The coronavirus epidemic has halted casino revenues coming into city government, and it has slowed revenue from food and beverage and local income taxes.
Winnecke said the city must adjust accordingly, and he’s preparing a list of requests for City Council. The next scheduled council meeting is March 30.
Winnecke wasn’t prepared Thursday to specify what projects in the budget might be cut or postponed, but the city is currently assuming two months of disrupted revenue.
The two-month estimate is based on what public health officials are saying, Winnecke said. He’s conducted numerous meetings with city department heads since the coronavirus crisis has deepened throughout the United States.
“We are working on a final amount, but it will be significant,” Winnecke said. “We hope we are overestimating what the loss will be. We hope we can come back later in the year and restore some items that we are cutting.”
Tropicana Evansville announced a minimum two-week closure, and it could turn out to be much longer. The city receives just over $1 million per month in casino revenues, which are spent for a variety of capital projects and other purposes.
Some expenses for 2020 include vacant home removal, funding to boost affordable housing, the zoo’s planned penguin exhibit, road work and more.
The city this year projected about $4.4 million in food and beverage tax revenue, to be used on the $8.4 million annual debt payment on the Ford Center. A softening of that revenue would force the city to find other ways to make the payment.
Local income tax revenues are used for many purposes; the City Council recently had debate about allocations for nonprofit agencies which are paid from that fund, but no changes were made.
Winnecke said the city will prioritize public safety and other essential government services as the budget is reexamined, and all road projects are still on as of now.
He said he’s spoken with zoo officials about the Penguins of Patagonia project but has not decided whether to hit the brakes on it. A groundbreak this spring was anticipated.
“We have a delicate situation because we have very favorable bids, and we have raised a significant amount of money in the private sector,” Winnecke said. “We received a very generous tourism grant from the state. That’s one of those we are certainly sensitive to. We’re weighing pros and cons. It’s a tough call.”
City Council Finance Chair Ron Beane said he’s spoken to colleagues about at-risk revenues and potential impacts on this year’s budget.
“We knew casino revenue would take a hit, and food and beverage revenue would take another hit,” said Beane, R-At-Large. “ … I was just happy to
President Alex Burton, D-Fourth Ward, said he's spoken to the mayor and every city council member about what Evansville faces.
"We all seem to be on the same page, not only the mayor but the entire council," Burton said. "We understand this has hit us unexpectedly, and we have to respond in the way that makes the most sense and puts the community first.
© 2024 courierpress.com, All rights reserved.