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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.

Post Date:04/15/2020 10:16 AM

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. “Moving into the next fiscal year, however, I am very concerned as it all depends on how quickly the economy recovers and consumer confidence returns.”

If the current pandemic situation is prolonged, town staff projects an additional $5.52 million revenue shortfall through the first two quarters of Fiscal Year 2021, which begins on July 1, 2020. Staff will present updated projections at the council meeting on May 12, 2020.

Media Contact:
Betsy Arnett
Public Information Officer

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