Post Content

Director of Finance: Full Economic Recovery From COVID-19 Shutdown Likely Two Years Away

Alright, which of you went to a movie in April?

At the height of the pandemic, when nearly everything in the city was shut down, the city’s latest revenue report shows that the city still collected $2 in admissions tax. The city’s finance officials ran the numbers and said that meant that four people bought tickets at movie theaters in Alexandria while nearly everything in the city was shut down.

“I don’t have their names, but that is how little revenue we collected in admissions tax,” said Kendel Taylor, the Director of Finance. “There were four people who contributed to that.”

It was one of the few moments of levity in what was otherwise a particularly dour financial report at yesterday’s City Council meeting that showed millions lost in meals tax revenue and transient tax revenue. Sales tax remained high, but only because the figures were from March, before the shutdown started. The lack of tax revenue has led to a gutting of the city budget with projects like the redevelopment for T.C. Williams High School pushed back.

While Taylor said she was grateful that the city went into the pandemic with a strong economy, she was less optimistic about the rate the city will be able to recover. Taylor said there’s no guidebook or methodology for figuring out what happens next, and staff in cities and counties across the country are still working to figure out how deep the economic impact will be and how long it will take to climb out.

“One of the most prevalent theories right now is this recovery is going to be very long and slow,” Taylor said. “It is likely going to take us two years to get to where we ended in December 2019. The economy was really strong at the end of the year and all throughout the year. Everything was ahead of expected. We came into COVID in a really good position. That strength has helped us minimize the cut and the funds balance we’re going to have to use.”

Taylor said the city could benefit from additional federal funding currently in the pipeline — particularly since unlike the CARES Act that funding can be used more flexibly by local government. There were still concerns, Taylor said, that more federal funding for local governments will mean Virginia will feel less obliged to continue sending funding to localities. Alexandria has used CARES Act funding for programs like rental assistance and small business grants.

“The one concern about the federal government providing additional flexible monies is it might lessen the need from the state to push down the second traunch of CARES funding,” Taylor said. “[We’re] continuing to make the argument that the spirit of the CARES funding is direct that it impacts in localities and that the services provided closest to the problems are the best services.”

Staff photo by James Cullum

Recent Stories

Schedule a walk-through of the luxury townhome community at Darden Towns in the heart of Del Ray.

With the City of Alexandria returning to regulating on-street retail and restaurant uses, including adding a price tag for the benefit, the City Council is also scheduled to review a…

It’s been a rough week for Washington Metropolitan Area Transit Authority (WMATA), and to top things off: someone hit a Metro work vehicle in the Braddock neighborhood this afternoon. The…

The City of Alexandria said a survey collecting feedback on the new expanded King Street pedestrian zone showed overwhelmingly positive. After the 100 block of King Street was permanently converted…

Looking for a more convenient way to work out?

On the Go Fitness Pro offers in home personal training. We bring the gym to you, so you can save time and skip the hassle of going to the gym. Plus, our trainers are certified and experienced, so you can be sure you’re getting the best possible workout.

We provide all the equipment needed for a great workout or we can use the equipment that you have.

Read More

Submit your own Community Post here.

Are you tired of going to the gym? It might be the crowds, the locker room, waiting on equipment or the time it takes to commute to the gym.

Having a personal trainer come to your home will keep you accountable, save you time and allow you to workout in the comfort of your own home.

Skip the hassle of the gym and try our in-home personal training service.

Our services are reasonably priced, convenient, effective and are risk free.

Read More

Submit your own Community Post here.

Think BIG! About the Future of Movement

Join the City of Alexandria and Arlington County’s Initiative to Rethink Energy at our first ever electric vehicle (EV) and sustainable technologies showcase! Get inspired by seeing a variety of electric cars, scooters, bikes, motorcycles, police cars, buses, trucks and

Between Home and the Front: Book Talk and Signing

Join the Smithsonian’s National Postal Museum on Zoom or in person at the museum for a special book talk with the curators behind Between Home and the Front: Civil War Letters of the Walters Family. A book signing will be

×

Subscribe to our mailing list