LOMPOC, Calif. - Lompoc projects a $205,000 loss of sales tax revenue through June 30 because of store closures and less shopping during the coronavirus pandemic.
It could lose $500,000 of sales tax revenue by December 31, depending on the pandemic situation.
They could see a total loss of $1 million from unrealized sales tax, building permits, recreational revenue and more.
Right now, the city is already operating on minimum staff, including in the police and fire departments.
Mayor Jenelle Osborne said public safety will remain a priority.
The city furloughed 102 personnel. They do not have a hiring freeze because they are still needing to hire police officers and some essential utility workers.
She said she is hoping sales tax revenue will only be delayed.
"As long as payments are still able to come in at some point within the next 6 months to a year, we could recover because that payment is still coming in," said Osborne.
The projected loss comes after Lompoc approved measure I2020 last month. The measure approved a one percent sales tax increase for the next 15 years.
It's meant to fund essential needs, like fire, police and road improvement.
The money is also needed to backfill the general fund to pay a CalPERS debt.
Osborne said "having that one additional percent, may be the one thing that at least allows us to generate the same amount of revenue, even with the loss."