Oneonta Could Lose
$2.5 M From NY Cuts
City Hall Can Absorb It, But Cuts Needed
By LIBBY CUDMORE • Special To AllOTSEGO.com
ONEONTA – With an estimated 20 percent cut to state aid, Oneonta could see a total loss in revenue of $2.5 million in 2020, City Hall’s Finance Director Virginia Lee told Common Council this evening.
“With the number of events that have cancelled, I wouldn’t be surprised if we lose $2.5 million,” she said.
Last week, Lee predicted that sales tax losses alone could remove as much as $1.6 million from the city’s revenue stream, with state aid being reduced by as much as $400,000 in a severe scenario.
“There are a lot of unknowns right now,” she said. “We won’t start to see our sales tax reduction until we get our June payment from the County, and we don’t know if the federal government will include municipalities in any future stimulus bills. This is just an estimate of what it might look like.”
However, she reported, the city’s $12.7 million general fund balance was strong enough to absorb the blow.
“Our fund balance is enough to carry us through a $3 million loss,” she said. “But it will take time to rebuild those reserves, so we will need to look at our capital plan and our strategic plan to reset our priorities.”
More good news, she said, was that the city was still on schedule to pay their debts.
