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. Our finances are holding steady, due in part to aggressive deferrals of projects and budget reductions earlier in the year. The City continues to monitor finances and has been providing monthly updates to City Council.
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 July, the City was $1,734,172 (or 10.4%) below budget. However, with the August collections, the City is $394,257 (or 2.2%) below estimate.This significant improvement was primarily due to the collections from income tax filing extensions from April 15 to July 15.The City is projecting further payments of deferred income tax revenue of $406,974 over the next two months that, if realized, would allow it to reach the budgeted estimate for the year.
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 $4,459,470 including $1,173,556 in the General Fund.
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.