City puts hold on $5.2 million in projects
By Neal A. Shipman
Farmer Editor
With the city expecting to see its Gross Production Tax (GPT) revenues falling due to low prices, as well as an expected drop in its city sales tax collections, the Watford City City Council has begun tightening its belt on planned projects in 2020.
During its regular meeting on Monday, April 6, the council approved trimming over $5.243 million from its 2020 capital improvement project list.
“We want to be proactive and take care of our budget,” states Laura Dokken, city finance director.
According to Dokken, while the city was budgeting to receive $16 million in GPT revenue in 2020, she is estimating that the city will be receiving $4.8 million less due to the low oil prices. In addition, she is expecting to see a $1 million drop in city sales tax collections due to the slowdown in the oilfield, as well as less business activity due to COVID-19.
“We are forecasting that we will start to see our GPT funds decreasing in June,” states Dokken.