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Santa Maria projects $10M revenue loss through 2021 from COVID-19 impacts
Santa Maria

Santa Maria projects $10M revenue loss through 2021 from COVID-19 impacts

City of Santa Maria officials have increased a projected drop in city revenue to $10 million extending into the upcoming fiscal year as a result of the COVID-19 pandemic. 

City spokesman Mark van de Kamp said that $3.8 million in losses are projected to take place through the end of the fiscal year in June, with an additional $6.5 million in losses projected for fiscal year 2020-21, which begins July 1. 

The projection includes predicted loss in revenue from sales tax, transient occupancy tax, permit revenue, and Non-Hazardous Hydrocarbon Impacted Soil revenue, van de Kamp said.

“This huge loss of revenues that pay for city services is as bad as it sounds,” van de Kamp said. “The city cannot sustain service levels or avoid impacts to its employees unless it gets outside help. We look forward to the economy reopening, when health authorities determine it is safe to do so."

A majority of the loss through June is anticipated just from sales tax revenue, including Measure U tax. This revenue makes up nearly half of the city's general fund, which is used to support public safety and other municipal services. 

Expanded homeless shelter duties, short supplies up challenge for Good Samaritan

According to van de Kamp, the city is looking at ways to offset the loss, including using rainy day reserves and discussing budget strategies with represented labor groups.

Coronavirus Series: Local impact and reaction to COVID-19 on the Central Coast

We are working hard to get answers about the impact and reaction to the coronavirus in Santa Barbara County, this is a collection of those stories. Do you have a question about coronavirus in Santa Barbara County? The Santa Maria Times news staff will work to answer your questions. Post them to our Facebook page, or email MCooley@SantaMariaTimes.com.  You can support the work of local journalists working hard in your hometown by signing up for a News+ Membership online

Laura Place covers city government for the Santa Maria Times.

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Santa Maria City Reporter

Originally from the Pacific Northwest, Laura Place covers city government, policy and elections in Santa Maria and Santa Barbara County. Follow her on Twitter @itslaurasplace

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