Coronavirus Pandemic Could Cost Hoover $15 Million: Report

Birmingham AL

08 April, 2020

4:32 PM

Description

HOOVER, AL — The coronavirus pandemic has already affected the area in a bevy of ways, with schools closing, social distancing and healthcare workers working overtime, but the financial impact of the pandemic will be felt by all of the major municipalities in the state, Hoover included. Hoover Mayor Frank Brocato's letter to residents this week revealed that the City of Hoover could lose up to $15 million in tax revenue from the pandemic. City officials expected to receive $133 million in taxes in 2020, but with travel restrictions affecting the hospitality industry and local restaurants and retail seeing loss of sales, Brocato said the city could lose between 6 and 11 percent of that. Don't miss the latest coronavirus updates from health and government officials in Alabama. Sign up for Patch news alerts and newsletters for what you need to know daily. "Based on an analysis of over 1,000 Hoover businesses, our revenue department estimates we could lose between $8 million and $15 million in revenue between the time this event started and thend of the fiscal year," Brocato said. "This represents a serious blow to city finances, but we are working diligently with our City Council to finalize a plan that will protect our operations and allow us to keep providing services to our citizens, businesses and visitors." Hoover 's Chief Financial and Information Officer Melinda Lopez told the City Council Monday that the city has about $100 million in cash in the bank, including money reserved for payroll and debt service, almost $33 million in reserves and about $3 million in capital money that is not allocated. "We are already finding ways to become even more efficient, and we will use those concepts to formulate the proposed city budget for next year," Brocato said. "Working alongside our City Council, we will make wise decisions for Hoover's economic future that protect the quality of life we all enjoy and the things we love about our wonderful city." SEE ALSO: 14 Reported Coronavirus Deaths In Jefferson County, 67 StatewideGov. Ivey Issues Stay-At-Home OrderSchool System Donates Cafeteria Food To Local Non-Profits