Anticipating a sales tax shortfall as a result of COVID-19, the city of Warrenton last week put a hold on infrastructure projects that were planned for this spring.

The city’s board of aldermen on April 7 approved a freeze on street repairs and other capital expenses, after a report that the city should prepare for up to $980,000 in lost revenue during to the COVID-19 emergency.

Projects put on hold include street repairs and asphalt overlays around the city, sidewalk repairs, and waterline replacements on Lakeview and Powell streets, said City Administrator Terri Thorn.

Postponing those projects will trim the city’s budget by about $550,000, Thorn said. The projects would then be included in the 2020-2021 budget, which starts in July.

“Hopefully, by the time we start the new budget, things will be back to some semblance of normal,” Thorn commented.

She added that major projects that have already been started will continue as planned. Those include right-of-way acquisition and planning for sidewalks on North Highway 47, stormwater improvements on Roosevelt Street, and sewer network upgrades.

Thorn said other municipalities in the region are predicting revenue shortfalls as high as 25 to 35 percent, as store closures and decreased retail activity lead to a loss of sales taxes. Thorn advised aldermen that the worst-case, 35-percent revenue shortfall would be $980,000 for Warrenton.

However, Thorn said the impact here will likely be more subdued.

“I do feel that we are in a better position than some cities because of the type of sales tax that we are generating in town,” Thorn commented. “If you look at our biggest sales tax generators, it’s going to be the Walmart store, it’s going to be Schnucks. Now it’s going to be the Rural King, which is still busy.”

Those businesses, which sell essential goods, are faring better than things like clothing stores that make up a larger portion of sales taxes in other cities, Thorn explained.

If the revenue shortfall ends up being more than what the city saves by delaying projects, Thorn said the city can make up the rest through spare funding that was budgeted for unfilled employee positions.

Ward 2 Alderman Gary Auch said city expenses were $450,000 under budget at the end of February, providing a cushion for a loss of revenue. He agreed that freezing projects would be prudent.

“The intent is not to go out and spend (money) if it’s not going to be there,” Auch commented.

Ward 3 Alderman Gary Miller added that Warrenton usually starts its fiscal year with a conservative prediction of future revenue, to avoid over-spending. In situations like this, he said that makes it easier to absorb a shortfall.