HOOVER, Ala. (WIAT) — Hoover mayor Frank Brocato and the Hoover City Council say they’re working together to make sure the city adjusts their spending during this financial crisis.
A letter was sent out to Hoover residents explaining how the coronavirus outbreak is affecting the city financially and how the Department of Revenue predicts the city will lost $8 to $15 million in revenue from the time the crisis started until the end of the budget year, which is the end of September.
Brocato said in the letter, “We are evaluating every aspect of our financial operations. We are already finding ways to become even more efficient, and we will use those concepts to formulate the proposed city budget for next year.”
Brocato said they are being smart with the cities money.
“We essentially slammed the door on spending except critical purchases. We want to keep cash in bank, only spending absolutely critical decisions like our employees. We’re evaluating our capitol projects and we’re doing all the right things to keep money in bank and it give us time to prepare this plan we’ve been working on very diligently. so we can make good decisions,” Brocato said.
The city released bank statements showing the public where they stand financially. Mayor Brocato said they went into this crisis already strong.
“We’re having a good year. We anticipated keeping our expenses down really well anyway so we anticipated we may have a $4 million surplus so we were doing well on our budget anyway but keep in mind, we have $32 (million) to $33 million dollars in reserves. We got about $50 million in investment so we’re in good shape in terms of cash flow,” he said..
Hoover, Councilman John Lyda said they are losing a lot of revenue this summer with many events being canceled.
“Hoover has over 80% of our revenue comes from sale and use tax. When you look at Birmingham, I can imagine that is the largest percentage than anyone in metro Birmingham and quite possibly in state of Alabama. Hoover is over 53 years old and we have built our living on sales tax revenue and when the economy takes a dive like it has now, in terms of business being open, that’s hurting Hoover more so than our surrounding neighbors,” Lyda said.
Lyda said it’s up to elected officials to make sure the city of Hoover stays on track and recovers during these financial challenges.
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