(5/14) Municipalities, including Emmitsburg, are aware that the impact of COVID-19 will adversely affect local government budgets, but to what degree still remains undetermined.

During the Town Council May 4 meeting, the commissioner was told by the town manager that all municipalities are trying to figure out what the reduction in revenue is going to be.

Mayor Don Briggs underscored the budget impact assessment stating that through this correspondence with Maryland Municipal League, the county executive's office, that the town’s revenue will be impacted by the COVID-19 virus. "Unfortunately," Biggs stated, "there is no one who knows how great the impact will be."

The town manager reviewed the anticipated losses in revenue, including the reduction of the amount of Highway User Revenues that the town will receive, which is being reduced by 12 percent. "Predictions are… that's going to be one of the harder-hit areas, as people aren't traveling. They're not spending money on the roads or gas," she commented. The amount the town will receive this year will be about $116,000. Last year's allocation was $131,782.

Anticipated income-tax revenues are also going to be "greatly impacted," said the town manager. The Town Council was told, a projected 12-percent drop in revenue will result in a loss of $250,000 in tax collections. In addition, expected revenue from the real estate taxes is a big-unknown. "Nobody's really sure," said the town manager, "so the town will be using the 2019 budget numbers for the anticipated numbers for FY 2021, which will begin July 1st.

The town council was informed of other areas where the town may experience additional reduced revenues such as, the pool and park pavilions, and—depending upon how long the restrictions will last—parking revenues, fine revenues, and parking-bag rentals.

State grant-funding, upon which the town draws heavily to offset current and projected expenses, is also being reduced, as the state has announced they are not going to fund a lot of the grants, unless you are already a grant participant.

The good news towards revenue generation appears to be the result of the proposed Rutter's commercial site development, which is expected to generate an additional $56,000 towards the water budget and $57,400 towards the sewer budget. However, if the Rutter’s development is delayed, or cancelled, as a result of a economic downturn resulting from the COVID-19 shutdown, then that revenue will disappear and the revenue side of the budget equation for the town could get bleaker

All told, the town staff project total tax revenue for 2021 to be around $1,870,000, which is $90,519 less than 2019's. The proposed budget for 2021 does not include an increase in the property tax, which will remain at .36 cents per $100 assessed value.