City of Charlotte to be Short $14 Million Due to COVID-19 Economic Hit

CHARLOTTE, N.C. — For the first time, we're getting a look at just how bad the coronavirus could impact the City of Charlotte's wallet, forcing a hiring freeze and city leaders to pinch their penny's as they try to move forward. 

"The last few weeks have been some of the most challenging I have ever seen and I don't know when this is going to end," said City Manager Marcus Jones before a virtual council meeting on Monday. 

He gave a presentation, showing the lasting impacts the virus could have as the city and nation are shut down for business. 

Due in majority to the fact that sales tax revenue is down 25-30% for the city, according to Jones, the city projects to have a shortfall of $13.7 million in total revenue. 

Jones said he projects the tax money that's brought in from our hospitality industry will drop by 85% by mid-summer, and likely won't return to normal until April 2021, depending on how long America is shutdown. 

Some city leaders, including Councilman Matt Newton, have expressed interest in tapping into some of the city's $116 million that it has in reserves to help. 

The reserved money is in case everything halts. If that were to happen, then the city would have roughly enough money to pay it's operating costs for at least two months.

Visit WCNC.com for the full story.


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