By Melissa Rosequist | Paradise Valley Independent
Editor’s Note: A previous version of this story incorrectly stated Mr. Allen’s last name.
Paradise Valley municipal funds are not in troubled waters quite yet, but elected leaders are making plans to weather the storm as impacts of the novel coronavirus continue to unfold.
On March 26, Paradise Valley Chief Financial Officer Douglas Allen laid out a financial plan to address inevitable revenue lost this spring.
Mr. Allen recommended the town continue to pull back on the last three months of fiscal year 2019-20 — which ends June 30 — and conserve as much as possible in the coming fiscal year to slow the use of reserve monies until revenues rebound.
The fiscal year 2019-20 budget reserve is $29.4 million, which is 118% of the operating budget.
Mr. Allen said the impetus of this plan is to mitigate external risks “everyone knows and can feel,” to keep the town in strong financial health.
Preliminary data shows January and February each garnered around $1 million in retail and hospitality transaction tax — made from bars, restaurants and resorts — but March revenue is expected to not make that $1 million goal, and there will be a drop off for the coming months.
“Less than a month ago when we were running projections we were looking at historically again, with this trend, 2020 was looking on track to far-exceed 2019,” Mr. Allen said.
