NW Valley Times

Glendale officials expect a huge drop in sales tax revenue with only essential businesses open since March 31.

Sales tax revenue makes up a little more than half of Glendale’s $230 million revenue projection, so city leaders expect a huge negative impact. The 2019-20 budget projected $117 million in sales tax. The city planned for $222 million in expenses on its general fund.

“We are continuing to evaluate the fiscal impact to the city budget brought on by the current COVID-19 pandemic,” Mat Droge, a Glendale spokesman, told The Glendale Star.

City Manager Kevin Phelps put in place a temporary hiring freeze that only exempts critical positions. The city suspended noncritical spending also. Droge said they will monitor the situation in case additional action must be taken.

What makes it hard to plan is the two-month lag in receiving the city’s portion of sales tax. Droge said city officials won’t know the impact of closures until at least the middle of May.

State unemployment figures show how the coronavirus pandemic is affecting the state and its people financially. More than 100,000 state residents had filed for unemployment assistance.

Droge said it’s too early to know if the city will make staffing cuts. When asked about potential cuts in staffing, Droge said it was too early to determine.

“Until we gather more information, it is premature to comment on our fiscal year 2020-21 budget,” he told The Glendale Star.

The city already planned a city budget workshop for May 5. The next fiscal year begins July 1.

The city will get some federal assistance sent to the state. Droge told The Glendale Star that Glendale will get about $3 million from the Coronavirus Aid, Relief and Economic Security (CARES) Act. He expects $2 million for public housing assistance, in addition to Glendale’s regular Community Development Block Grant and Emergency Solutions Grant money. The city will get $1 million from the Federal Transit Administration, he said.

“We are evaluating the requirements and allowable use of each grant, and until we gather more information, it is too early to determine the use of the funds,” Droge told The Glendale Star.