Aurora looking at hiring freeze, other cuts, due to COVID-19 revenue losses.

Aurora is bracing for a loss of as much as $27 million by the end of September, depending on how long coronavirus-related business shutdowns last.

The city council received a report Wednesday from chief financial officer Martin Lyons, based on figures through March 26, detailing the hits it could take in lower sales tax receipts and the loss of inspection and permit revenue. He also projected up to 10% less in property tax receipts, suspecting more property owners than usual may not pay their bills, which are due June 1 and Sept. 1.

That does not include the loss of gambling-tax revenue, which Lyons believes would be $4 million more.

Lyons said Thursday that his numbers are based on a reduction in consumer spending through Sept. 30, because while businesses may get to open sooner, they also may not have the same amount of business as they did before the the virus closure, and that activity could be lower longer than expected.

Under the scenario, if the city continues to spend money as normal, it would have to dip in to savings for general-fund expenditures, potentially drawing down that reserve to zero unless officials transfer money from other funds' reserves, he said.

"We are seriously looking at every capital project" to see if they can be delayed, Lyons told the council.

That includes an $8 million street-repair and repaving program. The city has already obtained prices for the work but is delaying a decision on contracts until at least June 1, he said. It is finishing design work already in progress for a new warehouse and gasoline pumps but may postpone further work if the contract for the project allows.

Lyons is also recommending a 90-day hiring freeze and suspending all pay increases except for those due to emergency promotions.

And the city should put a 90-day hold on some projects and programs from the "noncapital decisions package" portion of the 2020 budget. Items on that list include adding six police officers, equipping all sworn police officers with smartphones, replacing some fire department equipment, making some improvements at the West Branch of the Aurora Public Library, and building an addition and putting an indoor golf simulator at Phillips Park's golf course.

He also recommends encouraging all city employees and pensioners to enroll in direct deposit.

"This is the first time - I don't even know what the records are in the Depression, the Great Depression, what happened in the city - but obviously this is the first time we have been in this kind of position," Alderman Bob O'Connor said.