File photo
File photo
Rock Island Finance Director Stephanie Masson told the City Council that the COVID-19 crisis is going to cost the city an estimated $3 million in lost revenue.
According to WVIK Radio, to respond to potential revenue shortfalls the city has put in effect a hiring freeze and asked departments to reduce spending.
The lost revenue is approximately 9% of the current general fund budget. The budget covers city expenses such as emergency services and public works. Masson predicted that the hardest hit for the city in 2020 will come from lost sales tax revenue, which she predicted will make up almost half of the total loss general fund revenue.
"Seventeen percent of our general fund revenues are related to sales tax, and we're expecting $1.3 million loss in those areas,” she said.
Masson said she expects a loss in hotel and video gaming taxes as well, and that the financial crisis could create problems when collecting property taxes.
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