ST. LOUIS — As Mayor Lyda Krewson and other city officials deal with the daily challenges of the coronavirus pandemic, they’re also keeping a wary eye on how the related economic slowdown will affect tax revenues and ultimately city services.
But they say it’s too soon to know exactly how spending allocations will play out in the coming year.
“The mayor has said this outbreak is going to be economically devastating,â€Â mayoral spokesman Jacob Long said Wednesday. “I don’t know that we have enough information to put a dollar sign on this (regarding tax revenue). We know it’s not going to be good.â€
Long added, however, that the mayor remains committed to carrying out increased pay for civil-service employees. The Board of Aldermen approved legislation just a few weeks ago for much of the workforce and follow-up measures covering police and firefighters were to follow.
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City Budget Director Paul Payne also said “uncertainty is a key concern†as he and his office work on preparing a proposed budget for the fiscal year that begins July 1.Â
He said he is awaiting data on how the coronavirus-related downturn is affecting the city’s sales, hotel and restaurant tax revenues and eventually earnings and payroll taxes following expected job layoffs. This year’s budget totals about $1.15 billion.
“You don’t know what kind of plans to develop until you get a little more feel on what’s going on,†he said.
The city charter requires a proposed budget to be submitted to the Board of Estimate and Apportionment, the city’s top fiscal body, by May 1 and Payne said he expects that to happen just before that date.
Payne said the city has built up its reserve funds to about $42.8 million. Long said Krewson had made building up city reserves a priority.
The city officials commented the day after ºüÀêÊÓƵ County Executive Sam Page said he had directed county departments to stop spending unless it is critical to the COVID-19 response.
Page said vacant positions will remain vacant and building projects and purchases will be delayed. The County Council, meanwhile, on Tuesday tabled what would have been a final vote for raises for civilian and crime lab employees of the county police department.