Huntsville city departments cut budgets over projected tax shortfall
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Huntsville city departments cut budgets over projected tax shortfall
Source: WAFF (Source: WAFF)

HUNTSVILLE, Ala. (WAFF) - This week Huntsville Mayor Tommy Battle said a preliminary projection shows the city will lose $15 million in tax revenue as result of the COVID-19 pandemic.

At present, the Mayor has asked all departments to prepare to cut their respective budgets 5% and imposed a hiring freeze on new positions. Finance has met with each department head and they have made their adjustments for the fiscal year. Cuts will not impact city services. No plans to cut personnel. It’s belt-tightening at this point.

City Administrator John Hamilton said each department is different, and the 5 percent cuts will come in different ways. He gave the examples of reduced overtime work, the elimination of travel and delaying “modernization” purchases such as new equipment or software.

“First of July we will have May numbers where we’ve been partially back open most of the month. We’ll get a real good picture at that time, so it’s probably 3 months before we get a real accurate forecast,” he said.

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