On Tuesday, the Antioch City Council learned based on updated projected numbers, they could see a reduction in sales tax revenues due to COVID-19 while there deficit spending could jump to as high as $5.4 million.
City Manager Ron Bernal stated the revenue numbers are coming in less than they did back in April to the tune of $3 million, but cautioned the council not to be alarmed by the numbers as they will have more data in October.
“The takeaway from tonight’s meeting is the fact we don’t have any good information on sales tax for Antioch specifically for COVID yet, we should by the end of September be receiving our sales tax information through June the 30, which gives us 3.5 months of COVID which will be much better and its not necessary to become overly alarmed over these numbers at this point and will have a lot better number coming in October and November.”
Dawn Merchant, Finance Director, confirmed they do not have any hard numbers at the time, but what was presented in April was an “optimistic version of sales tax” scenario and since the state is now in a recession, they have now updated those since projections since California has a 20.1% decline in sales tax revenue.
Merchant says they now have a “recession approach” which has sales tax down by $2.7 million but highlighted the numbers are “best guesses” and stated the purpose of this budget workshop was to let the council know a “worst case scenario”.
Merchant hopes by October-November they come back with better estimates and it won’t be as negative as it is now.
For the 20-21 update:
- $2.77% sales tax revenue reduction – budget could need future amendment
- Estimated 7% property tax increase, actual increase just 5.95% resulting in $270,196
Merchant warned the council that the Budget Stabilization Fund is doing its job, but they could be pulling from reserves from $2.3 million to $5.4 million saying they should not be using this fund to balance the budget, but striving to spend what they bring in each year.
She also wanted that the council approved the FY-2020-21 Police Services Budget that includes a $1 million vacancy in savings from now being fully staffed. With the police department at 115-officers, there is no savings and if they maintain this through the remainder of the year, those savings will not come to fruition and will be $1 million above what is budgeted.
Merchant closed by saying she doesn’t think the sales tax protection numbers will be as bad but did not have a crystal ball so they will come back with more data in the fall.
Councilmembers Joy Motts, Lamar Thorpe and Lori Ogorchock questioned the numbers on property tax considering the real estate market and were taken back why it was lower than anticipated which was explained many projects they thought would come online were not yet online.
The council also learned they could see a $25 million reduction in their overall cost with Unfunded Liability since they began making full payments earlier this year.
Merchant will come back in October with updated numbers where the council will begin holding discussion on possible cuts based on those updated projections.
8 comments
Not true. More people shopping here that would normally shop in Concord because of commute. I am happy I can shop where I live. I will never commute on e-BART so it is back to groceries in Concord when this is over.
Sounds like they need to cut back and get their spending in line with what they are bringing in, just like the rest of us peons.
I personally will do my best not to shop around here and make sure to do as much shopping as possible in Clayton or Concord. I can no longer patronize the business here as they are poorly run with bad management, low quality employees who dont care about their jobs and dont wear their masks properly, and low quality products and service.
I agree with Steve
Well with the looming tax increase I stopped spending money in Antioch. Plus with the SIP there is no point. Watching the city council spend spend spend and being greedy makes me pocket every dime I have. I however will make an exception once in a while to buy food from one of the local restaurants but I am sure the City council want’s them all closed and never to return. That is their number 1 goal make Antioch a crap hole.
It looks like that Anitoch is being overrun by churchgoers who know nothing ..
Sorry Gumby that your offended by those of us the have faith if God to get us through the situation we are currently going through!
As for the City Council, there is actually only one who has been battling her whole term to work for the Citizens of Antioch! We need to clean the chambers and reset the whole bunch with a group who have our City, the Safety and Protection of the Citizens and property, the Budget keeping it in check, cleaning up the streets, getting the homeless off the streets and taking care of long term! And Drawing businesses back to Antioch and stop building new, until unoccupied space has been renovated and occupied! If it’s not empty then it will not draw a bad element! You have to keep an area live with activity, proper activities to make tax money for the city! Also, attract businesses that will have activities for the youth, maybe get the youth off their electronics and playing outdoors again!
I know that I may sound like a crazy person from the 90’s trying to bring businesses to Antioch, use empty commercial spaces before building more, Even utilizing space that the County stole from the City with the promise to build a facility for the homeless 20+ years ago and never did! We should be pounding on Federal Glover’s door on this one!
“there” deficit spending? Someone needs to learn some correct ENGLISH GRAMMAR! “there” deficit spending? Where deficit spending! Jeeeeeeeez!
Sorry Gumby that your offended by those of us the have faith if God to get us through the situation we are currently going through!
As for the City Council, there is actually only one who has been battling her whole term to work for the Citizens of Antioch! We need to clean the chambers and reset the whole bunch with a group who have our City, the Safety and Protection of the Citizens and property, the Budget keeping it in check, cleaning up the streets, getting the homeless off the streets and taking care of long term! And Drawing businesses back to Antioch and stop building new, until unoccupied space has been renovated and occupied! If it’s not empty then it will not draw a bad element! You have to keep an area live with activity, proper activities to make tax money for the city! Also, attract businesses that will have activities for the youth, maybe get the youth off their electronics and playing outdoors again!
I know that I may sound like a crazy person from the 90’s trying to bring businesses to Antioch, use empty commercial spaces before building more, Even utilizing space that the County stole from the City with the promise to build a facility for the homeless 20+ years ago and never did! We should be pounding on Federal Glover’s door on this one!
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