Sunset Valley to look at budget cut options April 7, faces estimated $1.37 million sales tax revenue shortfall due to coronavirus

Sunset Valley City Council will meet April 7 to discuss the fiscal year 2019-20 budget. (Nicholas Cicale/Community Impact Newspaper)
Sunset Valley City Council will meet April 7 to discuss the fiscal year 2019-20 budget. (Nicholas Cicale/Community Impact Newspaper)

Sunset Valley City Council will meet April 7 to discuss the fiscal year 2019-20 budget. (Nicholas Cicale/Community Impact Newspaper)

With a majority of Sunset Valley’s annual revenue tied to local sales tax, Sunset Valley City Council will meet virtually April 7 to discuss the inevitable impacts that the ongoing coronavirus could have on the city’s current and future budgets.

In an online update to residents April 4, Sunset Valley Mayor Rose Cardona listed a number of potential budget cuts and reductions council can consider to help mitigate expected lost revenues through sales tax. The items listed did not include layoffs of city personnel.

According to Cardona, the fiscal year 2019-20 budget was built with the assumption that the city would generate about $553,000 in sales tax revenue per month, a number that could decrease by 80% in April and from 30%-40% in months through September.

Without cuts to the city’s budget, there could be a budget shortfall of up to $1.37 million by the end of the fiscal year, Cardona said.

Of the 106 businesses currently located in Sunset Valley, 58 are closed, while 48 remain open in some capacity. There are also eight current vacancies at Sunset Valley storefronts, according to a list provided by Cardona.


The April 7 City Council meeting agenda also includes a presentation on hotel occupancy tax funds and the city’s venue and green tax.
By Nicholas Cicale
Nick has been with Community Impact Newspaper since 2016, working with the Lake Travis-Westlake and Southwest Austin-Dripping Springs editions. He previously worked as a reporter in Minnesota and earned a degree from Florida State University.


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