04/07/2020 | Press release | Distributed by Public on 04/07/2020 17:20
It's difficult to know today what the eventual economic impact of the COVID-19 pandemic will be to the City of Fort Worth, but city officials expect to see repercussions from the economic slowdown. While the numbers will continue to change, the city is looking ahead at the possible impacts of this public health emergency and what it means for the community.
'On the financial side, the COVID-19 pandemic will be impactful, not only to the City of Fort Worth as an organization, but to our local businesses as well,' said City Manager David Cooke. 'Fortunately, we entered this challenge in a strong position - the local economy was extremely strong and the city was in a very strong financial position. Throughout this pandemic, we have been and will be out there providing needed services to our residents.'
The city's budget staff is reviewing revenues for all funds, including: Sales tax. Sales tax contributes 22% of General Fund revenue, or $172.8 million annually. The sales tax has shown strong performance through February; returns are about $2.2 million above budget through February. Retail sales are by far the leader in Fort Worth's sales tax collections. Unfortunately, the business shutdown has strongly affected the retail segment. Sales tax could fall short by up to $26 million in the second half of the fiscal year. Online sales, whose taxes are collected at the shipping destination, may provide some cushion as residents resort to placing more online orders due to stay-at-home directives. CCPD. The Crime Control and Prevention District, which relies on 1/2-cent of the sales tax, is projected to take a hit up to $12 million this fiscal year. Development revenues. City staff has seen an 18% reduction in building permit activity and a 36% reduction in platting activity. If this continues for the remainder of the year, General Fund losses could range from $2.2 million to $3.6 million. Fines. Loss of fines paid to the city for Municipal Court cases and other sources could range from 30% to 75% in budgeted revenues initially, then climb back to a 15% loss in the final two months of the fiscal year. Public events. Projected losses from events that are not being held total between $15 million and $25 million.
Mitigating revenue loss
City leaders plan to implement strategies to mitigate revenue losses. Some of the ways city leaders can deal with the projected revenue loss include:
City officials plan to fully use available federal aid to benefit the community. As much as $166 million in preliminary aid could be available to city coffers, depending on eligibility requirements that are unknown at this time. The largest amount would likely come from the U.S. Treasury Department's CARES Act, which provides direct, fast relief to American workers and businesses.
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CanceledCrime Control and Prevention District Election - Public Meeting : 6 p.m. April 8, 2020; Northwest Branch Library, 6228 Crystal Lake Drive.
CanceledCrime Control and Prevention District Election - Public Meeting: 6 p.m. April 8, 2020; Victory Forest Community Center, 3427 Hemphill St.
Dallas Fort Worth International Airport Board Meeting Conference Call: 8:30 a.m. April 9, 2020; Conference Call.
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CanceledMayor's Committee on Persons with Disabilities Meeting: 10 a.m. April 9, 2020; Hazel Harvey Peace Center.
Regional Transportation Council Meeting: 1 p.m. April 9, 2020; North Central Texas Council of Governments.
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CanceledGrow Your Own Vegetables - Canceled due to COVID-19 restrictions: 6 p.m. April 9, 2020; Botanical Research Institute of Texas, 700 University Drive.
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CanceledFinancial Empowerment Workshop Series: 6 p.m. April 9, 2020; MLK Community Center, 5565 Truman Drive.
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CanceledCrime Control and Prevention District Election - Public Meeting: 6 p.m. April 9, 2020; Southwest Regional Library, 4001 Library Lane.Code Rangers< /a>: 9 a.m. April 11, 2020; Hazel Harvey Peace Center for Neighborhoods, 818 Missouri Ave. CanceledCrud Cruiser Cleburne: 9 a.m. April 11, 2020; Cleburne, 1501 W. Henderson, Cleburne, TX 76033. CanceledCrud Cruiser Hurst: 9 a.m. April 11, 2020; Hurst Bellaire Shopping Center, 300 E. Pipeline Rd. Hurst, TX 76054.
CanceledCrud Cruiser Cleburne: 9 a.m. April 11, 2020; Cleburne, 1501 W. Henderson, Cleburne, TX 76033.
CanceledCrud Cruiser Hurst: 9 a.m. April 11, 2020; Hurst Bellaire Shopping Center, 300 E. Pipeline Rd. Hurst, TX 76054.View the full city calendar and current meetings.