Galesburg Reporter

The Galesburg city manager estimated that the city will have a $3.4 million budget shortfall this year due to COVID-19, according to local reports.

City Manager Todd Thompson told the news agency that the city was relatively prepared for the economic downturn that hit due to the pandemic, but that the shutdowns would take a toll on the city, The Laser reported in early May.

The city's administration had put together a three-scenario model regarding the coronavirus, which included a moderate impact projection that assumes there will not be a second wave of the virus or drastic changes in policies and funding, The Laser reported.

Under the moderate scenario, the city would see a $3.4 million shortfall for the budget, The Laser reported, which would equal13% of the tax revenue.

Thompson is concerned about the city's pensions, but not about layoffs because the city has strong reserves and low debt, which makes it less likely that it will have to enact layoffs, The Laser reported.

Thompson also told The Laser that the projections were based on many unknowns because there have not been any recent pandemics to use as a base.

Tony Oligney-Estill, the parks and recreation director, also provided Thompson with a worst-case scenario estimate for if recreation programs and facilities remained closed for the rest of the year, which would mean the city would save approximately $304,000, The Laser reported. Those programs are staffed with mostly part-time employees.

Thompson told The Laser the plan was to still open up the rec facilities as soon as it is safely possible. He suggested using the money that had been put aside for replacing vehicles and computers to help balance the budget for the shortfall. He also suggested transferring some of the sales tax dollars to replace hotel/motel tax losses.