Riverside’s reserve funds are also decreasing and that shortfall is expected to increase in coming years if tax revenues don’t increase.
“Even without COVID, the city is going to be running short on revenue moving forward,” Carpenter said. “So then 2023, that’s when the hammer drops.”
Carpenter asked council to set the city budget through March of 2021, and possibly reevaluate the budget after that.
“The impact of COVID could be even greater still,” he said, given the rate of unemployment in the Dayton region.
Some council members suggested increasing the city’s income tax for employees who work in the city in the future, but noted that the budget would still have to be cut. Suggestions included taking the tax credit for residents who work outside of the city to zero, and beyond that, cuts would likely be made in multiple different departments.
Riverside City Council will discuss the budget again at its work session in December.