Arkansas City commissioners were warned Friday to expect a big financial hit to the city and hospital due to the economic fallout from the coronavirus pandemic.
During a study session Friday, City Manager Nick Hernandez predicted serious problems in the next few months.
The city does have reserves, but might also have to borrow from other sources to cover expenses.
“I’m telling you straight up right now, we’ll probably have to transfer some of our utility funds over to help cover the offset in lost revenue,” he said. “If sales tax decreases 50 percent, you’re talking about a $1.6 million hit to the budget.”
Hernandez added that he doesn’t expect to see that big of a drop. His guess is a 20 to 25 percent drop overall due to the loss of local sales.
(Read more: www.ctnewsonline.com)
