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We have been watching City finances carefully since the onset of COVID-19. Only essential purchases have been made. Only projects with grant funding have gone forward. Non-union city employees took 5 percent pay cuts. Some workers were furloughed.
Berea as well as other cities and the state have made similar decisions based on predictions that revenue would see a significant decline. So far, the results are encouraging,
Through August, our overall operational revenue is up $9,000. This figure would be higher but the county is behind processing property tax and special assessment collections.
Income tax collections are up by $750,000. The top 50 business tax payers have remained consistent and September figures look favorable.
Water and sewer collections are on target and the number of delinquent water and sewer bills is below last year’s figure. Monthly state and county tax collections are beginning to climb back to normal.
Building permits continue to be down as well as collections at the recreation center.
Overall operational expenditures are down $1.3 million. Benefits for city employees are down $500,000; operations down by $400,000 and payroll is down by $400,000.
We’re doing really well but we should remain cautious. I’m still concerned about next year. The economy remains volatile and COVID is still with us.
The City did receive more than $500,000 in CARES money from the federal government. It can be used only to offset expenditures due to the pandemic. We spent that money on cleaning supplies, sanitation for the rec center, including a new air filtration system and PPE for police and fire.
There is a possibility that we could receive a second round of CARES funding but that is very much up in the air right now.
We will continue to be vigilant and careful watchdogs of your tax dollars.
