Oakley made the claims to Lakeway City Council during an April 20 projection of city finances in the face of the global pandemic.
“There is no disaster coming to the city of Lakeway, even under the very worst scenario,” Oakley said.
Council was shown economic forecasts compiled by Oakley and city staff that forecast the city’s financial balances under scenarios that ranged from optimistic forecasts to worst-case scenarios.
The forecast included tax and fees collections for sales taxes, property taxes, permit fees and more. Oakley reported she predicts the city will see a realistic variance from its budget of a deficit of $1.1 million.
“We do believe we will be short in revenue,” Oakley told council members.
The city has not yet collected sales tax data from March and April and will not be able to do so until May or June, Oakley said. At that point, a more complete forecast model will be available.
Oakley commented the city’s budgeted property tax collections are unlikely to be affected by the coronavirus pandemic and any ensuing national economic downturn. Approximately 98% of the budgeted property tax collections have already occurred, Oakley told council.
Further, Oakley reported the city has not seen a slowdown in permit applications for residential and commercial developments.
“Building inspections are being done," she said. "We haven’t seen any decline in residential or commercial development."
