HUTCHINSON, Kan. — Hutchinson City Manager Jeff Cantrell says that it is still too early to see what the full effects the pandemic will have on the budget and the sales tax base for the city.
“The first one (budget projection) that came in reportable under the COVID-19 period was down four percent. That really didn’t capture any impact of the event,” Cantrell said. “The next one came in at six, six and a half percent down. Still, in my opinion not reflective what so ever of the event.”
Cantrell says it will be the next report he gets that could reflect where the budget is heading. He says that the next budget meeting with the City Council on June 9 will allow staff to get a better handle on what the city is facing financially.
“This next budget work session that we’re proposing is one to kind of frame that piece of this. And to model it with the anticipation of certain loss levels.” Cantrell said. “It will be a . . . little fluid in dynamic as we go forward in what we project.”
Cantrell says he hopes the next meeting will allow staff to set goals for their budget and any reductions. Another area that might take a hit from the budget is the outside agencies that the city and county fund each year.
“This group may not know what their outside reserves are and their potential for surviving an event like this. Cause most of the time those outside agencies do have reserves,” Cantrell said. “To properly right-size those donations going out to those groups to the same commensurate level with what the city is anticipating to experience, might be the way to handle this.”
If Cantrell does convince the Council to make such reductions, the cuts could be significant.
“I think what you’ll see is staff making a recommendation, anyway, that that would be how we handle those,” Cantrell said. “We anticipate the city being down twenty percent. Outside agencies take a bite of the apple. We’re all in it together.”
The June 9 budget meeting is set for 4 p.m. at the Hutchinson city offices.