Based on early estimates, Flower Mound stands to lose an estimated $2.8 million in revenue this fiscal year.
Debra Wallace, the town of Flower Mound’s chief financial officer and assistant manager, said she looked at national retail sales data to help inform projections of how much the town could lose in sales tax revenue in the coming months.
She first looked at the town’s top revenue-generating industries: retail trade and accommodation, food services, information and wholesale trade. The town’s early projections show that the sales tax generated across those industries will be down 7% in March, 17% in April, 15% in May and 7% in June.
Wallace said the closure of the Community Activity Center will be another significant source of revenue loss. If the center, which first closed in March, remains shuttered through June, the town could lose $570,000 that would have been collected through classes, spring break and summer camps and other programs.
Though officials are still examining potential budget cuts, Wallace said city staff has already identified $2 million of budget expenditures that could be deferred or canceled.
She said some of the savings are a result of the town’s decision to furlough 148 employees: 56 school crossing guards, 59 part-time employees, 18 seasonal employees and 15 full-time employees.
Wallace said the town could also save money by canceling non-required travel or training for employees, canceling events, postponing a scheduled employee survey and potentially deferring of one-time purchases and facility projects. More details will be available at Flower Mound Town Council’s May meeting.
The town announced April 20 it is canceling the annual Independence Fest, which will save about $220,000.
“We’re disappointed we will not be able to host Independence Fest this year,” Town Manager Jimmy Stathatos said in a statement. “Every year, I look forward to seeing the community come together to celebrate July Fourth. However, due to the uncertainty of the COVID-19 situation in Texas at the moment and how long it will affect large events, we need to make the call now in order to recuperate as much of our costs associated with hosting it as possible.”