NORMAL, Ill. (WMBD) — Monday, presuming the stay-at-home order would be extended to July 1, Normal’s finance director, Andrew Huhn made suggestions to city council that would help balance the budget. Huhn said the city’s general fund has been impacted by significantly by COVID-19 restrictions.
Originally, $69.9 million was the adopted budget for revenue. With a $10.4 million decrease, it’s now just under $60 million.
The most significant revenue impacts were lack of restaurant tax, state income tax, hotel tax and local motor fuel tax. Huhn suggets that the council’s immediate reaction should be to reduce and eliminate certain transfers from the general fund. This means funding transfers to roadway work, the capital fund and vehicle and equipment reserve would be reduced.
Huhn said there has been a drastic drop in revenue and it has lead to an uncertain recovery time frame. He is forecasting a one to three year recovery.
Normal’s City Manager, Pam Reece said there has been federal action to provide help to certain municipalities, but Normal does not fit the criteria so far. Reece said they plan to move forward as if they will not be receiving any federal financial assistance.