CHARLOTTESVILLE, Va. (WVIR) - Charlottesville is facing an $8.3 million shortfall in tax revenue due to the pandemic, but City Council members say they’ve planned to make up for it.
The loss in tax revenue comes as a result of less money generated from tourism, hotels, and restaurants.
Last year, council saved roughly $8 million that would’ve gone toward capital projects, like sidewalk updates, to prepare for pandemic-induced losses.
Council recently passed a $192.2 million budget for next fiscal year, starting in July, but Councilor Lloyd Snook said that budget could see a shortfall, too.
“Although the budget we just passed doesn’t include any tax increases the only way we’re going to be able to do the things we want to be able to do in coming years, is with some kind of tax increase,” Snook said.
Council is expecting to get anywhere from $4 million to $9 million as part of the American Rescue Plan next month. That money will be used specifically for COVID-related expenses.