SOUTH BEND — The projected impact of the coronavirus pandemic and the effects of the 2020 fiscal curb will require officials to cut money from the city’s budget over the next couple of years.
The city administration has proposed spending cuts of about $4 million a year for the next two years to help reduce the anticipated revenue shortfall caused by everything from lost income tax collections to revenues that were produced by the Morris Performing Arts Center and the Century Center.
In addition, property tax collections have been capped to some extent by the “circuit breaker” that became part of the state constitution in 2008 and stipulates that taxes for homeowners cannot exceed 1% of the gross assessed value of homes, for example.
The city has been preparing for the “circuit breaker” for many years and has built up a hefty reserve knowing that it was coming, said Councilwoman Karen White, who chairs council’s Personnel and Finance Committee.
The impact from COVID-19 and the recession that followed, however, was not anticipated, and the city already has implemented a soft hiring freeze — among other measures — to contain costs, said Dan Parker, city controller.
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