CHARLOTTESVILLE, Va. (WVIR) - The city of Charlottesville is looking to cut $5 million from its budget due to the coronavirus. It’s leaving staff with questions over what to cut.
Due to the coronavirus, many restaurants are closing their doors, which is affecting the meals tax. It’s also putting an end to tourism, which is affecting the lodging tax. Both of those have an impact on overall sales tax.
One of the first things the city will look to cut is capital projects that may be able to be deferred. Councilors are also looking to not replenish reserves as quickly and not adding money to accounts.
“The budget that we thought we were going to have two weeks ago was simply not going to be realistic. We now know we’re going to have this big financial hit and we just have to do the best we can with it. Hopefully, it’s not any worse of a hit than $5 million dollars," Charlottesville City Councilor Lloyd Snook said.
Snook says the best case scenario is the University of Virginia opening back up in the fall. This way more than 20,000 students living in the area will help the city get back to a normal economic life.