City of Chico loses money in first and second quarter because of pandemic

More Chico businesses are going under after months of forced closures and restrictions, causing the city to lose money.

Local businesses going under -- after months of forced closure and then restrictions.

New at 5 -- action news now reporter amy lanski is live in chico with the potential long- term impacts of the pandemic -- on the local economy.

Today i spoke with the city manager about the pandemic& he tells me that the impact on the city is quote "gross."

Chico city manager mark orme "it's devastating, one of the things we know to be true, is small businesses are the life blood of any community."

Chico city manager mark orme says they can't project how many businesses could close in chico because of covid-19..

"we're hopeful that they are able to hang on and get reopened, obviously one of the biggest highlights here recently is that we have moved into the orange.

That will allow for a lot of the businesses to expand their business capability."

Orme says in the first and second quarter the city has lost tax sales revenue.

"we saw a 10.6% decrease overall from the year period, that equates to $1.3 million we contribute that fully to the pandemic."

Amy: "what does this mean for police, fire, roads and overall safety of the people of chico?"

Orme: "we have limited staffing, however they are pulling through they are doing an amazing job, we are hopeful it will not have an impact on those public safety responses.

At this point in time we don't foresee that.

However, when the economy goes down, sales tax goes down, there's always a risk that there's going to be some symptom infatuated in the city, and that usually means our ability to respond."

Amy standup: "case and point, because of the pandemic this chico spa had to close their doors for good."

Don thatcher: "we've been doing this for eight years, been voted best of chico several times, just had a great relationship with the community just sad to see that's gone."

Thatcher says he's sad they're hoping to try and re-open but are not sure because of the uncertainty of the economy..

They can't sign a new lease right now.

Reporting from chico.

Amy lanski.

Action news now.

Coverage you can count on.