As uncertainty surrounding the COVID-19 coronavirus pandemic continues to affect businesses and city projects, Fort Wayne city officials are attempting to project what the short- and long-term future may look like financially.
City Controller Garry Morr met with City Council Tuesday night to discuss numerous scenarios that could play out regarding the city’s finances, both in the positive and the negative.
Morr says despite the day-to-day uncertainties in the pandemic, Fort Wayne has been able to limit the toll on the city’s budget by being proactive.
“We need to be preparing now, and I think we're clearly doing that by delaying projects, by freezing hiring and we have some other things in mind that we'll be doing.”
Morr says the city has a cash balance of $27 million, with an additional $2.1 million set aside for emergencies. And while a state order will delay property tax payments for 60 days, Morr believes the city’s revenue target will still be met by the end of the year since those dollars are collected through mortgages.
$6 million in supplemental tax distribution from the state has also been earmarked for Fort Wayne and there are currently no plans for spending that money.
But Morr adds that the pandemic will leave a major dent in the city’s fuel tax revenue, noting a significant lack of travel since stay-at-home orders went into effect in March. The city typically takes in $14 million via fuel taxes.
And Fort Wayne is expected to lose roughly 10% of its $67 million income tax revenue, according to a study from Ball State University’s Center for Business and Economic Research. Morr called Ball State’s estimate “conservative,” predicting the local income tax hit will be worse.
