Reopening: Union City Officials Wrestle With COVID-19 Budget Shortfalls
UNION CITY (CBS SF) -- Union City's budget is expected to be lower by $4 million due to the impact of the coronavirus, city officials said Thursday.
The coronavirus crisis has caused the city to realize less revenue from sales, business license and transit-occupancy taxes as well as parking. The lower revenues will amount to an expected $4 million impact to the fiscal year 2020/2021 budget, according to city officials.
The lost revenue is directly affecting the city's General Fund, which pays for services such as police, fire, park and street maintenance and public recreation.
Also, costs have increased due to the pandemic. More has been spent on janitorial services and on other things required to help prevent the spread of the virus.
As a result of the budget impact, Union City officials decided to end the city's $310,000 annual subsidy of the Alameda County Library next to City Hall.
Before the pandemic, the subsidy allowed the library to stay open an extra 20 hours per week, city officials said. The library is closed
because of the pandemic.
Permanent reductions to recreation services in the city will also be considered by the City Council because of the budget shortfall.
A comprehensive fiscal analysis is underway to understand the impact of COVID-19 on the seven-year financial outlook.
Union City City Manager Joan Malloy did not respond to an email Thursday evening asking whether city officials will consider reductions to
the Police Department's budget in light the nationwide demands for police reform.
