WARRENSBURG — The financial impact of the ongoing pandemic has affected the City of Warrensburg budget and the budgeting process.
Director of Finance Marcella McCoy led the discussion at the June 22 City Council meeting explaining the current and projected impact on the primary governmental funds for the city including the general fund, capital improvement transportation, capital improvement half cent sales tax and general obligation bonds fund.
The discussion on the next fiscal year budget was delayed with the election as the budget is discussed after a new council is formed.
“There’s not a lot of good news in this report, at all,” McCoy said.
McCoy said the city has tracked the impacts of COVID-19 throughout the pandemic.
“We watched the (COVID-19) cases and anticipated things going down more than they have reflected so far which has made this a little bit of a challenge because we were anticipating revenues to have already reflected a negative trend pretty dramatically as specific to sales tax,” McCoy said.
McCoy states the pandemic significantly impacted the local sales tax and lodging tax.
McCoy said sales tax revenue, which makes up 40 percent of the general fund for the city budget, has been consistent for the past five years but is expected to decrease through the remainder of the year.
The Lodging Tax, which funds the Warrensburg Convention and Visitors Bureau, decreased as stay-at-home orders were put in place, but is expected to increase as those orders are lifted.
Information provided to the council states the total general fund revenue for the 2020 current budget is $10,630,530, the 2020 projected budget is $9,877,300 and the 2021 proposed budget is $9,159,780.
The general fund is the basic operating fund for the city. Revenue for this fund includes property taxes, sales taxes, franchise fees, grants, licenses, fines and permits.
Capital improvement transportation revenue for the 2020 current budget is $860,000, the 2020 projected budget is $703,700 and the 2021 proposed budget is $643,500. Revenue for this fund includes gasoline tax, motor vehicle sales tax and motor vehicle fees.
Capital improvement half cent revenue for the 2020 current budget is $1,866,000, the 2020 projected budget is 1,775,022 and the 2021 proposed budget is $1,491,500. Revenue for this fund includes half-cent sales tax.
General obligation revenue for the 2020 current budget is $1,081,00, the 2020 projected budget is $1,101,500 and the 2021 proposed budget is $1,117,600. Revenue for this fund includes a property tax debt levy on real estate and issue bonds.
“These numbers may be revised up or down based on July receipts in anticipation of reduction (in) sales tax collections,” information provided to the council states.