City facing almost $4 million loss due to pandemic

City facing almost $4 million loss due to pandemic

Jail.

You're taking a live look at decatur city hall.

Tonight -- we're learning what the city plans to do now that it is facing an almost 4-million dollar loss due to the impact of coronavirus.

City leaders say decreases in sales, lodging and gas taxes are why they'll be making cuts with a proposed 65-million dollar budget for the next fiscal year.

This comes as the number of coronavirus cases increases across north alabama.

Over the past week -- the metro -- i-65 cooridor averaged nearly 90 new cases each day.

But the department of public health reported issues with its dashboard this morning.

The state says it reported some data yesterday.

It wasn't supposed to be released until today.

Waay 31's casey albritton joins us live from decatur now.

She's at city hall with what the city plans to cut and how losses are hurting some businesses.

Casey?

Decatur's chief financial officer tells me there are three main areas where money will be cut -- travel, training for city employees and new city vehicles won't be purchased unless absolutely necessary.

All due to coronavirus lynsey staggs/ business owner "i've heard a lot of bad stories about others.

I had a friend down the street who had to close up her shop."

Lynsey staggs owns a shop in downtown decatur called urban atlas... and says local businesses in the area have lost a lot of money during the pandemic.

Lynsey staggs/ business owner "i also have meditation classes, things like that, so those have definitely had to be on halt."

Decatur city leaders say business isn't the only thing being impacted...the city has lost money due to a lack of travel and lodging revenue in the city.

Decatur mayor tab bowling "as we go into the fall and winter, we don't know what the virus might do."

City financial officer, john andrzejewski "2020 has been a difficult year.

2021 is just going to be a carry over of the same risks that were involved: a potential shut down, loss of revenue, items like that, so we just have to be more careful."

The city says when it comes to the next budget, money won't be spent on new equipment such as laptops for city employees, any employee trainings or new police cars...unless it's absolutely necessary.

Decatur mayor tab bowling "we want to make sure we fund needed vehicles, not just police but for all departments."

City financial officer, john andrzejewski, says the city will probably see a 25 percent decrease next year in business license revenue because of the pandemic.

Business licenses are based on a local business's revenue from the year before.

Lynsey staggs/ business owner "it's been heartbreaking to watch and also scary."

Staggs says she's noticed how much local stores have suffered this year.... and city officials say if business improves, they can re-evaluate the city's budget.

Lynsey staggs/ business owner "it's a little scary, i'm a little nervous, but i'm super hopefull that the people who have supported me this far continue to do so."

City financial officer, john andrzejewski "people just have to weigh their options and support local business and we will all get through it."

Decatur city council members are expected to vote on the proposed 65 million dollar budget over the next two weeks.

Live in decatur, casey albritton, waay