Concho Valley News

There are only six cities in Texas that qualify for direct aid from the federal government, and they benefit from laws like the CARES Act because they have populations over 500,000.  

San Angelo, with a population of 100,000 is one of many communities in Texas that are trying to figure out how to survive two events that are drastically impacting the city's economy simultaneously, the oil bust and the COVID-19 pandemic, without getting help from the federal government, according to San Angelo Live.

"The scary part is that this is unprecedented,” San Angelo City Manager Daniel Valenzuela said. “Not even the recession of 2008 had everything happen at the same time.”

The city's general budget is funded by property taxes and 1 cent of the 8.25 percent sales tax collected by the state, according to San Angelo Live. Valenzuela is expecting a 50% drop year-over-year in sales taxes, with the city forecasting sales tax revenues at $18.6 million for fiscal year.

San Angelo has already found ways to raise money without assistance from the federal government, including a $338,000 Community Development block grant from the State of Texas. Some other possible grants to be allocated to the city include a Bureau of Justice Assistance grant worth almost $78,000 and aid from Texas Health and Human Services totaling about $96,000.  

Funding the police department, fire department, and maintaining the water department are a top priority for Valenzuela, according to the San Angelo Live. Property tax revenues fund the police and fire department by about 75% and the rest is paid with sales tax revenue.

Valenzuela said he may instate a hiring freeze for city vacancies or move existing employees to new positions to enhance productivity and save money for the city, according to the San Angelo Live.