Flagstaff experienced a $ 5 million to $ 15 million drop in sales due to COVID-19.
Those were the numbers presented to Flagstaff city council this week as city officials looked at what the rest of the year might look like.
It's not an easy task, said Rick Tadder, director of management services. With the situation regarding COVID-19 and economic recovery remaining unclear, it is difficult to predict how much revenue the city can generate this fiscal year.
If the economy produces a strong return, the city could only lose about $ 260,000, Tadder said. However, if the recovery slowly rebounds and revenues decline across the board, Flagstaff could see income losses of up to $ 15,100,000.
And that is the money that is used to pay the salaries of city staff, police officers, firefighters, infrastructure improvements and city facilities.
"I believe things can get difficult, but because we have such a good plan and monitor it, I know without a doubt we can weather the storm," said Corst Evans, Flagstaff Mayor.
The city has been in the “significant” phase of its recession plan since May, triggered by a possible drop in sales of up to 10%. At this stage of the plan, the city has frozen hiring on most vacancies, delayed capital purchases, curtailed some city services, and laid off some employees.