COVID-19: Rochester Facing Millions in Lost Taxes and Funds
Rochester, MN (KROC AM News) - The city of Rochester is facing a possible loss of nearly $30-million in funds and tax revenues as a result of the coronavirus crisis but may have solutions to address the large shortfall.
City Administrator Steve Rymer has prepared a report that will be presented to the City Council Monday.
The report shows the estimated loss of funds/revenues is in the range of $17-million to $28-million. Rymer says staff has identified possible sources of $27-million to $36-million to address the loss. He says the sources include “personnel savings, department cost containment, use of contingency, use of reserves, and new COVID-19 revenue from the Federal government.”
Rymer’s report is based on these economic recovery assumptions:
• Shut down phase ends by early summer
• Extended recovery period
•No changes to adopted State and Federal aid revenue
Rymer is recommending the council take action on a plan at its May 4th meeting.