Itasca expects 14% revenue drop because of COVID-19
The village will draw $2.2 million from its $10.4 million in reserve funds to avoid more serious cutbacks, Mayor Jeff Pruyn said. "We expect to make it through without any major cuts for now," Pruyn said. "We have a good amount of reserves for capital projects and essential services."
No taxes are expected to be raised as a result, he said.
The village expects to spend $12.3 million in the fiscal year that began May 1.
Revenue is expected to be $10.2 million, with a 35% decline in sales taxes expected this year because of the pandemic. Sales tax revenue from hotels fell by 70% as a result of closures of three hotel properties, including the permanent closure of the Holiday Inn at 860 W. Irving Park Road. Haymarket Center bought the Holiday Inn and proposes opening a controversial drug and alcohol treatment center.
The village's share of income taxes is expected to drop by 15%, as is utility tax revenue.
"The fact that they maintained an adequate reserve allows us to weather the storm," Village Administrator Carrie Anne Ergo said. "We are in a unique position in that regard but it is still very concerning nonetheless."
The village board is expected to approve the budget by July 21.