Pandemic could cost city $5.7M in revenue
Comptroller John Tuey says the outlook has improved slightly since last month but remains grim.
KINGSTON, N.Y. » The city’s financial picture has improved slightly, but Kingston still is on track to lose between $3.4 million and $5.7 million in revenue for the year as a result of the ongoing COVID-19 pandemic, according to the city comptroller.
John Tuey told the Common Council’s Finance and Audit Committee during a virtual meeting Wednesday that he was able to update the city’s estimated financial loss based, in part, on the most recent sales tax revenue checks from the state. He said that revenue is 6.59% lower so far in 2020 than at this point last year.
“I think it’s going to continue to be a moving target as we move through the year,” Tuey said. “Hopefully, there’s a little more stability from check to check. But we are getting a cumulative picture.”
Tuey said the city’s estimated sales tax revenue loss for the year is “pretty consistent” with the 17 percent that Ulster County is projecting for itself. He said that would equate to a loss of about $2.1 million in sales tax revenue for the city, excluding any contractual givebacks to the county.
In his low-end estimate, Tuey said the city could lose $1,672,261 in sales tax revenue for the year, according to his updated figures. His midrange estimate is a $2,110,620 loss, and his high-end estimate is $2,548,978.
Last month, those figures were estimated to be $2,253,415 at the low end, $2,759,733 for the midrange and $3,266,051 on the high end.
In overall revenues, Tuey said, the city could lose anywhere from $3,432,841 on the low end to $5,666,931 on the high end. That is a slight decrease from the $4,073,538 low-end estimate and $6,517,129 highend estimate provided last month.
In terms of state aid, Tuey said the city should expect a 20 percent reduction, which would equate to a $460,000 loss in revenue. He said the city has not been notified of that reduction, but “the writing’s on the wall.”
Most of Tuey’s other revenue estimates have not changed, though he said he did adjust the parking revenue numbers because it appears the city might resume paid parking.
In an email earlier Wednesday, Mayor Steve Noble said it was his understanding that the Kingston Uptown Business Association wanted the city to begin charging for parking at meters and in municipal lots again.
“Our parking enforcement staff is currently on furlough until the end of the month,” Noble wrote. “Our comptroller has been calculating the loss in both meter fees and parking violations and estimates the city has lost about $375,000 since March ... year over year. We are evaluating the parking situation and will make an announcement in the coming days.”
On the expense side of the budget, Tuey told the Finance and Audit Committee the city has started to call back some of its fulland part-time employees who were placed on temporary unpaid furloughs.
“The thought process behind this temporary furlough was to lay off those employees whose job responsibilities were most affected by the virus and the shutdown,” Tuey said. “So as we’re starting to open back up, we’ve seen where certain employees have been called back. But that’s primarily been based upon their job responsibilities.”