Huntsville to face multi-million dollar deficit

Huntsville to face multi-million dollar deficit

New at ten -- coronavirus is costing the city of huntsville millions of dollars... and we still have not seen the extent of the impact is could casue.

As we mentioned -- mayor tommy battle said the city can expect a 10 to 15 million-dollar deficit in city finances.

Waay 31's will robinson-smith is live outside of city hall with more on what the city council learned tonight.

Will?

Tonight was all about giving an overview of where the virus has hit the economy, and just how badly it has done so.

The city council will use this information to help create a budget over the next couple of months.

Tommy battle, mayor, city of huntsville this is financially a difficult year, the covid-19 year as it will be called for a long time.

It was not a rosy picture painted by the city wednesday night.

Finance director penny smith says right now... huntsville is below the national unemployment rate, which is 11.2 percent.

However... she says having a lot of people out of work will help slow down the recovery.

Penny smith, director of finance the numbers are moving in the right direction.

Huntsville is at 7.5 for now, but most economists say from here, we will see very slow gains well into the next year.

Sales and use tax revenues make up about 50 percent of huntsville's revenue stream.

Smith says retail businesses have seen a slight rebound recently, but she painted a more dire picture for restaurants.

Penny smith, director of finance we have many, many restaurants in the city.

The concern remains as to how, and if, they are able to weather the storm.

She says by the end of the year, the city expects to lose $7 million in sales and use tax revenue.

Mayor tommy battle says because of these and other hits to the budget, all departments are being asked to tighten their belts.

Tommy battle, mayor, city of huntsville we've asked department heads to do a limited hiring freeze to cut expenditures.

From where we're looking right now, we're thinking that their cuts will be enough to make our revenues equal to our expenditures.

Smith also mentioned that the slow recovery will persist at least the next six to eight months.

She says they hope to be able to have a budget for the council to consider by late next month or early september.

Reporting live in huntsville, will robinson-smith, waay