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Possible Pandemic Impact on Muscatine Budget

Muscatine could lose as much as three million dollars in revenue due to the pandemic. That was the message last week to the city council from the finance director.

City spokesman Kevin Jenison says one of the biggest potential losses would be from the hotel-motel tax with an estimated reduction of 350,000 dollars between this fiscal year ending June 30th, and next year. But the exact impact won't be known for a while.

"The fact that we just don't know how soon this recovery is going to come back, what is the actual dollar amount we're going to be out, and is there going to be state or federal aid coming to the municipalities - we just don't know."

Other probable revenue losses for Muscatine include the local option sales tax, gas tax, park and recreation fees, licenses, and permits.

Jenison says possible spending cuts include street maintenance and improvements, and postponing the hiring of three new firefighters.

The Muscatine City Council will meet again on Thursday (6/11) and talk with department heads about how they can help the city with its budget problems caused by COVID-19.

A native of Detroit, Herb Trix began his radio career as a country-western disc jockey in Roswell, New Mexico (“KRSY, your superkicker in the Pecos Valley”), in 1978. After a stint at an oldies station in Topeka, Kansas (imagine getting paid to play “Louie Louie” and “Great Balls of Fire”), he wormed his way into news, first in Topeka, and then in Freeport Illinois.
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