COHOES, N.Y. (NEWS10) — Officials in the City of Cohoes announced the city is facing a financial crisis and has lost more than $1 million in revenue, which was brought on by the pandemic.
The second quarter sales tax revenue is down 25 percent, which is a loss of $400,000 in just one-quarter of the fiscal year. Officials said they planned for a drop in April by announcing a range of staff reductions, programs and budget cuts, but they will have to get even more efficient moving forward.
Cohoes Mayor Bill Keeler said the city is also hurting from the decline of state aid, which is $550,000. The mayor said they’ll be looking through the budget item by item.
“Well, we are going to have to figure it out quick because that’s $1 million deficit that we have to solve before January 1, so I’m not going to tell the department heads what to do, but I’m going to call them into the room and we are going to sit down with them,” he said. “This is their area of expertise, each department. I’m going to ask them to come up with efficiencies that we have to get better on certain things and perhaps getting a better handle on overtime, and that’s one example I can come up.”
The city is also taking a loss of revenue from building permits due to the halt of construction. The sales tax revenue represents 27.5 percent of the city’s budget.
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