During this unprecedented time, a priority for the City has been to be proactive in the expected fiscal impact due to the COVID-19 pandemic. The City’s FY2020 budget has been revisited and operational changes have been made to meet new estimated revenue projections. This will be a very fluid process as we make our way through summer and realize the true financial impact of the pandemic situation. As things change, operating activities will be adjusted timely and accordingly in response to financial changes.
For all funds collectively, operating expenditure targets are based on a decreased revenue estimation of 15%; some revenue sources are estimated at a lesser percentage and some more than 15%. For example, Sales Tax, which accounts for 47% of projected FY2020 revenues, is estimated to decline 25%. Fees & Services represents 30% of projected FY2020 revenues and those are estimated to decline from 3% - 10% based on specific sources by Fund. Total revenue decreases for all funds is estimated at $4.2 million dollars. The response to this is a combination of expenditure cuts and use of reserves. Numerous funding/relief opportunities for municipalities are being tracked which may offer some relief to our negative fiscal impacts.
Specifically, over the past 2 months, our priority has been both the health and safety of our employees and the community we work in, as well as tackling the very uncertain financial implications. The following are actions that have been taken in response to the expected revenue shortfalls:
- Realignment of employee benefit costs,
- Operational changes in handling overtime and comp. time,
- Reduction in hours/furlough of specific positions,
- Unfilled positions are on hold for FY2020 unless strictly necessary,
- Combined job duties to maintain services,
- Employee training and travel has been postponed with minor exceptions,
- Supplies and other material purchases of non-emergency nature are postponed,
- Capital purchases or projects are on hold unless essential to maintenance.
The health and safety of our community, visitors, and employees is a priority for the City of Osage Beach as we continue to respond to the rapidly changing COVID-19 pandemic. The City is working through these changes and will be phasing in contact with the public. City lobbies and offices remain closed to the public; City events have not been rescheduled at this time; Park programs and activities will begin to emerge in June and details will be forthcoming. City employees continue to work with precautions to deliver city services without interruption and to prevent the spread of the virus among employees and their families.
