City of Santa Maria projects $10.3 million revenue loss due to pandemic

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Posted at 4:12 PM, Apr 15, 2020

The COVID-19 pandemic is now estimated to cost the City of Santa Maria more than $10 million in revenue.

The City previously estimated a $3.8 million loss by the end of June, and said Wednesday it projects another $6.5 million loss for the next fiscal year, which begins July 1.

"This huge loss of revenues that pay for City services is as bad as it sounds," Public Information Manager Mark van de Kamp said. "The City cannot sustain service levels or avoid impacts to its employees unless it gets outside help. We look forward to the economy reopening, when health authorities determine it is safe to do so."

The combined $10.3 million projected loss includes sales tax, transient occupancy tax, permit revenue and Non-Hazardous Hydrocarbon Impacted Soil revenue, according to the city.

City officials say they are looking at various strategies to close the gap.

"We're looking at a lot of strategies including reserves and we're looking to the state and federal governments for some relief as well," van de Kamp said.

A local emergency has already been declared in Santa Maria as well as a hiring freeze and the furlough of 93 hourly workers.