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2 <br /> Table 1 below indicates COVID-19 impacting the last four months of FY 2019-20 due to the necessary public <br /> health restrictions/social distancing and closed economy. The Department of Finance applied a 12%sales tax <br /> decline for the months of March, April, May and June 2020 which is consistent with the percentage declines <br /> experienced during Great Recession FY 2009 in Table 2 below. <br /> TABLE 1-FY 2019-20-PROJECTED 4-MONTH IMPACT FROM COVID-19 <br /> Economic Activity Sales Tax Revenue Financial Impact <br /> December March Not Applicable <br /> January April Not Applicable <br /> February May Negligible; minimal social distancing <br /> March June -12%due to COVID-19 economic crisis <br /> April July -12%due to COVID-19 economic crisis <br /> May August -12%due to COVID-19 economic crisis <br /> June Sept -12%due to COVID-19 economic crisis <br /> TABLE 2-GENERAL FUND SALES TAX ARTICLES DURING THE GREAT RECESSION <br /> 39 40 42 <br /> FY2008 $7,407,395.81 0.7% $5,555,760.05 2.0% $5,517,245.09 2.0% <br /> FY2009 $6,202,897.12 -16.3% $5,047,888.55 -9.1% $5,002,534.31 -9.3% <br /> FY2010 $7,149,075.19 15.3% $4,839,459.49 -4.1% $3,804,507.95 -23.9% <br /> Sales Tax Financial Impact:The General Fund FY 2019-20 sales tax revenue was forecasted at$28.3 million prior to <br /> COVID-19.The pandemic and economic crisis financial impact is forecasted to range from $1 million-$1.4 million <br /> based on four months of sales tax declines at 12%/month.The revised forecast for Articles 39,40 and 42 ranges <br /> from $26.9 million to$27.3 million. One positive sales tax note is NCDOR enforcement of online sales which <br /> curtailed an even larger negative impact from COVID-19. <br /> Revenues-General Fund <br /> General Fund revenue collections through the end of March represents 82.9%of total budget as compared with <br /> 80.9% in the prior fiscal year. Property taxes consists of real, personal property and motor vehicles which <br /> represents 97.2%of revenue collections as compared with 98% in the prior fiscal year.There remains three <br /> months of motor vehicle taxes and delinquent collections to meet the budget. Property taxes represents 72%of <br /> the revenue budget and sales tax represents 12%of the revenue budget. <br /> Expenditures-General Fund <br /> General Fund expenditures represent 71.2%of total expenditure as compared with the prior fiscal year of 72.2%. <br /> Expenditures are projected to be within budget primarily attributed to personnel savings and prudent <br /> management of non-personnel expenditures. The Finance Department established a COVID-19 project account to <br /> track pandemic expenditures for eligible FEMA reimbursement. As of March 30, a total amount of$36,659 has <br /> been spent and encumbered by front line departments for medical supplies and social service client needs. <br /> Orange County Government I www.orangecountync.gov 1 919.732.8181 <br />