Mobile mayor expects city will lose 50% in revenue per month due to COVID-19

Coronavirus

MOBILE, Ala. (WKRG) — While speaking about hazard pay in Mobile, Mayor Sandy Stimpson brought up the fact that the City is losing money and it may not be able to handle the additional costs.

At Tuesday’s press conference, Mayor Stimpson said the City expects to lose more monthly in revenue than originally anticipated. Before April 1, some city officials believed Mobile would lose between $7-$7.5-million per month in revenue due to COVID-19.

On Tuesday, Mayor Stimpson said, “We now think that we will have a $12-million loss in revenue on a monthly basis. Our revenue is about $22-$23-million, so we’re talking about a 50-percent hit in revenue.”

Mayor Stimpson said the City will run out of money if they start doing it now and has to pay the additional costs for an indefinite period, especially with the big hit in revenue. He thinks the City would last for about five months before going through all of its reserves.

The mayor said dealing with the Coronavirus outbreak is different than a hurricane where first responders get hazard pay. Mayor Stimpson explained the City pays for a hurricane by going through its reserves first and hopes to get reimbursed by FEMA. He said FEMA doesn’t reimburse everything from hurricanes.

In the case of this pandemic, he said he does not know if FEMA will pay the City back for any hazardous pay. At this point he told reporters there is preliminary discussion on hazard pay ongoing, but at the city council has not approved the measure.

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