Carmel facing financial challenges due to COVID-19

CARMEL, Calif. (KION)

Talks are set to happen today between city officials in Carmel to discuss matters in slowed revenue and other ideas regarding businesses.

As of now, revenue projections have been revised downward, according to statements in the city's public agenda.

Mayor Dave Potter said he wanted to begin the process of reopening but the city says it is unsure of what is to come.

Mayor Potter's plan is to have an area in Downtown Carmel blocked off to traffic and turned into a dine-in area that allows people to have an outdoor eating experience with regulations like separating chairs and tables to maintain safety guidelines.

He says the goal of this plan is to allow businesses that may be struggling to reopen and give people a unique dining experience.

Local businesses say this plan could make a difference and hope it is a approved.

"We built our business around people that we want to work with. When your friends and family members are suffering, there is no pleasant way to go through that," said Seventh and Dolores Steakhouse executive chef, Todd Fisher.

The city agenda states slow downs in businesses like restaurants and hotels have contributed to their loss of revenue as tourism is influenced by the services businesses are able to offer.

It states that even with efforts like freezing hiring of vacant positions and reducing professional services and materials, the city could be looking at a deficit of $1.4 million.

Another issue pointed out was the decline in sales tax, which they say is attributed to things like stock market losses and unemployment.

The city states it originally had a positive projection for this year before the pandemic began to cause business reductions and closures.

They say revisions to the fiscal expectations were made and they are changing the framework to come up with a budget for the upcoming year.

The city meeting will take place later this afternoon.