City Council gives final approval to upcoming fiscal year budget
Staff estimates $1.8 million loss in City revenue due to COVID-19
Spartanburg City Coucnil gave final approval to the fiscal year 2020-2021 budget at their meeting on Monday. Council passed the budget's first reading 7-0 at their last meeting after hearing an assessment of the damage COVID-19 has done to City coffers from, City Manager Chris Story. Staff estimates show a loss of $1.8 million in revenue from the pandemic in the upcoming fiscal year, with much of those losses coming largely out of City Hospitality Tax revenue and business license revenue.
To adjust to the decline in revenue, the City will postpone renovation of the former Integral Solutions building at 450 Wofford Street for use as a new central fire station as well as deferring major equipment purchases. The budget will also not include pay increases for employees and some positions currently open will not be filled until a later date. Story cited the City's strong fiscal position prior to the COVID-19 as reason for why the impact was not worse, with no City employees having been furloughed as a result of the pandemic and no cuts to services having been instituted. For a full look at the draft fiscal year 2020-2021 budget, follow this link.
Also at Monday's meeting Council voted unaimously in favor a development agreement for a 120-unit apartment development to be constructed at the intersection of Union and E Kennedy streets, the former Cannon Roofing site. Under terms of the agreement, 10 percent of the development's units will be set aside and leased at below market rate for tenants with incomes at or below 80 percent of area median income. The agreement includes a fee-in-lieu of taxes abatement, which will see the developer's tax liability capped at $150,000 for years 2-15 years, rising to $250,000 in year 15, and capping at $335,000 when the agreement expires at 25 years.
For more on Monday's City Council meeting, see the full video below.