OROVILLE, Calif. -- City budgets are based off the revenue they earn the previous fiscal year.
Oroville's budget for next year is expected to decrease because of the coronavirus.
City council members project there will be a fifteen percent decrease to next year's budget.
Its drop comes from the massive decrease in sales tax revenue with businesses staying shut down during the pandemic.
Fiscal Director Ruth Duncan says at least forty percent of the city's revenue this year will come from sales tax.
This leaves community members uncertain, but still optimistic.
Oroville Business Owner and Resident Joey Tomlinson says, "I know that our city will get through it for sure. We've overcome a lot of things just this past couple months with the pandemic and everything and I know that's probably a big hit on what's going down with the drop, but i do believe in our city i know we'll get through it."
Action News Now spoke with Councilman Eric Smith earlier this afternoon.
He believes that Oroville, unlike many other cities in California, can still be in good shape next fiscal year.
Smith says, "I think the council as a whole, when it comes to fiscal issues, takes a pretty conservative approach and very careful. In this particular situation I think it's going to pay off great dividends.
Duncan and the council made it clear in today's meeting that their projections will be based off of worst-case scenario numbers.
Additionally, Duncan said the city is working with sales tax experts who will provide advice and information as time progresses.
The next city council meeting will be next Tuesday on May 5th, 2020.