City Manager Provides COVID-19 Financial Update for City Operations

CORPUS CHRISTI, TX – City Manager Peter Zanoni updated City Council on the impacts of the COVID-19 virus to the City’s budget and finances.

Today’s presentation focused on revenue impacts to the City’s General Fund, Crime Control Fund, Type A & B Corporations, Hotel Occupancy Tax Revenue and General Obligation and Utility Revenue Bonds. The 2020 Fiscal Year budget was the largest to date at $1.075 Billion and began on October 1, 2019.

Key Financial assessments include:

• Overall expected reduction in revenue by 5% to 8% which equates to $14 to $21 million revenue shortfall in the General Fund
• Sales tax is expected to be the biggest revenue loss for this Fiscal Year
• City Manager has identified initial solutions including cutting discretionary expenditures, slowing the filling of vacant positions, and utilizing other savings to include those from fuel, electricity, travel, and economic development agreements.

A Budget and Finance Executive Team established by the City Manager will meet weekly to use data to drive decision making. Budget updates will be presented at each regularly scheduled City Council meeting during the City Manager Comments for the foreseeable future. In May, the updates will include State Hotel Occupancy Tax, Airport Fund and Water Utility Funds. The complete presentation will be available online at https://www.cctexas.com/sites/default/files/covid19-Budget-Financial-Update.pdf.