Amid the COVID-19 pandemic and with unemployment at an all-time high, the City is carefully monitoring income tax income vs. expenditures to determine the impacts on the City's finances. Income taxes account for approximately 78% of our General Fund budgeted revenue. As of May, while we are seeing a decrease in income tax revenues, our finances are holding steady, due in part to early aggressive deferrals of projects and budget reductions until we determine the total impact this will have on the annual budget. The City continues to monitor finances and is providing monthly updates to City Council. We will better understand the impact in coming months.
2020 Income Tax Revenue
This graph shows the 2020 monthly income tax revenue received by the City as compared to the monthly budgeted amount. Through the end of May, the City was $588,737 below budget. However, an estimated $714,763 income tax revenue is deferred until later in 2020 due to the tax filing extension from April 15 to July 15. This leaves a Net Impact of positive $126,006 as compared to budget.
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This graph shows the City’s income tax budget and actual along with the deferred revenue broken down by Fund. As approved by voters, income tax revenue is distributed to the General Fund, Hudson Parks, Hudson Fire/EMS and Hudson City School District. The graph also accounts for the “Expense Deferrals” which include budgeted expenses that have been deferred or reduced in response to the COVID-19 impact. The overall “Fund Net Impact”, is a positive $4,572,759 including $1,320,065 in the General Fund.
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2020 Budget in Brief
The purpose of the 2020 Budget in Brief is to highlight key components of the approved budget and provide a basic understanding of the City of Hudson's major revenues and expenses, as well as capital improvements planned for the year.