HomeMy Public PortalAboutTOL NR 2020-04-15 coronavirus budget impact
Town of Leesburg
News Release
For Immediate Release
Wednesday, April 15, 2020
Media Contact:
Betsy Arnett, Public Information Officer
barnett@leesburgva.gov 703-771-2734
Town of Leesburg Projects $3.4 Million Revenue Shortfall in
Fiscal Year 2020 Due to Coronavirus Pandemic
Another potential $5.52 million shortfall projected from July through December.
Leesburg, VA (April 15, 2020) – At last night’s town council meeting, Leesburg Town Manager
Kaj Dentler unveiled revised budget projections for the remainder of Fiscal Year 2020, which
ends on June 30, 2020.
The evolving projections include approximately $3.4 million in revenue shortfalls. The largest
shortfall will be an estimated $1.5 million in lost parks and recreation revenue, resulting from
the closure of Ida Lee Park Recreation Center and the cancellation of recreation classes, camps,
and programs. The remaining projected revenue losses are $801,000 in meals and beverage
taxes, $393,000 in transient occupancy taxes, $388,000 in business license taxes, $127,000 in
parking revenue, and $228,000 in other miscellaneous fees and charges for services.
The Fiscal Year 2020 Budget originally anticipated a $1.3 million revenue surplus. With that
surplus no longer a reality, the total shortfall expected for the current fiscal year is just under
$4.8 million.
To make up this shortfall, Dentler outlined a series of expenditure cuts, mostly the result of
facility closures and associated furloughing of flexible part-time staff at those facilities. Other
cost-saving measures implemented by Dentler include a hiring freeze; elimination of all non-
essential employee travel and training; deferred maintenance on roads, trails, and town
facilities; delaying some planned capital asset replacements; and using a line of credit rather
than bond proceeds to save on debt service costs. The proposed expenditures cuts fully offset
the expected revenue shortfall, thus balancing the Fiscal Year 2020 Budget assuming current
revised revenue projections are met.
“Due to the town’s strong financial position, I am confident that we can manage the budget
impacts through Fiscal Year 2020, though constant monitoring will be required,” Dentler said.
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