City of Yuma expecting more than $5-million decrease in retail taxes; tourism may rebound

City of Yuma's 2020-2021 annual budget expected to be completed by June 30th, despite COVID-19 interferences.

YUMA, Ariz. (KYMA, KECY)- As the nation takes an economic hit with the coronavirus, Yuma City Council members continue to keep track of our local economy, with plans on how to bounce back.

The City of Yuma says its operations are as busy and active as ever before.

Buildings still need inspections, potholes still need to be filled, and wastewater must be treated.

Due to social distancing, this communication is conducted virtually.

City of Yuma administrator, Philip Rodriguez, said, “[The City] held over 60,000 worth of minutes on this [Zoom] platform over just a couple weeks.”

However, COVID-19 has thrown a wrench in one major city task, the budget.

“Everything we thought we knew a couple of months ago has been put on hold or shifted,” Rodriguez said.

He added, the city's budget was started in December 2019, but since the pandemic, it's been completely upended.

Now, the city council is starting from scratch, and are expecting reduced revenues across all local and state taxes.

There's possibly a more than $5-million decrease in retail and hospitality taxes.

Rodriguez said, “Yuma has become over the years a really good tourist destination and attraction. We know there is going to be a hit [on tourism and restaurants].”

That said, Visit Yuma anticipates a pinned up demand for travel, which will work in Yuma's favor.

Linda Morgan from Visit Yuma said, “More people are going to travel shorter distances. They’re going to look for rural areas as opposed to urban areas. Car trips as opposed to flying or cruises. That goes really well for Yuma because we have a tremendous amount of people in our drive market.”

Rodriguez is sure the city will re-adjust, but it may take some reinventing of current business models; perhaps using technology as an advantage.

“It definitely will be a season where entrepreneurs will really shine. It's going to be an opportunity for folks that are more innovative, inventive and creative to really rebound from all that we are going through," Rodriguez said.

The budget committee is meeting on a daily basis and expects to complete the budget by the initial June 30th deadline.

Once the city re-opens, residents may notice some lasting impacts of social distancing, such as new safety and security measures at city buildings, until there is widespread COVID-19 testing or vaccines available.