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WARREN -- City council is looking to approve a 2021 initial general fund budget that is nearly $600,000 more than the measure passed at the end of 2019, according to city records.
The 2021 budget proposal set to be approved by city council has the city earning $28.9 million in general fund revenue compared to $28.2 million passed at this time last year -- before the coronavirus pandemic took a toll on the U.S. and local economies.
The city is projecting it will lose about $39,000 in total income tax revenue it projected to have by the end of 2020, compared to the end of 2021. When this year's budget was approved, officials expected the city to collect $20,513,000 in total income tax revenue. Next year, the city is expected to collect $20,552,000 in income tax revenue.
As of Wednesday, the city has collected $19,588,862 in taxes.
City Treasurer Thomas Letson said he expects the city to collect just more than 95 percent of the projected tax revenue by the year's end.
Letson was not always confident the city would be so close to its original tax collection projection for this year. The city was as much as $2 million off in income tax collections in April.
Although tax collections picked up in late spring and early summer, Letson described a second dip in collection by the time schools opened in September. But since then, collections steadily have been rising.
"While I would like to have no deficit in collections, being only 5 percent down, I believe the city is in good shape," Letson said. "I believe part of the reason we have been able to maintain our tax collections at this level is we have a significant population of residents that work outside the city."
POLICE AND FIRE
The city's police department uniform division was expected to have $7.7 million in expenses this year. Next year's budget is projected to be $8.4 million in expenses for the police uniform division.
The city recently approved wage increases for its police department that provide members of its patrolmens' unit 75 cents per hour in 2020 and again in 2021. The gold officer unit received 3 percent in 2020 and another 3 percent raise in 2021.
Police earned $4.2 million in wages in 2019. The department was projected to earn $4.1 million this year, earning $3.9 million as of mid-November. The city is projecting its officers will earn about $4.5 million in 2021.
Some of the expenses accrued by the police department in 2020 will be offset by the more than $3 million the city received in coronavirus relief funds from the federal government.
The city's fire department is spending more in building maintenance and repairs this year and next year than in prior years. In 2019, the department spent nearly $70,000 in maintenance and repairs of its stations. Through mid-November, the department has spent $164,348 and is expected to spend an additional $87,660 in 2021.
"The fire department received upgrades to the heating and cooling system including condensers, compressor, thermostats and new controls for $64,250," fire Chief Ken Nussle said. "Also the fire department is receiving 65 metal gear lockers installed on four inches of concrete at all three stations. That was approximately $34,000. We are in the process of building individual cubicles in the central station dormitory for $32,000."
The department received turnout gear washers and dryers for the Parkman Road and Atlantic Street stations, with the plumbing included for approximately $38,000.
The fire department is planning to remodel four offices at the central station, plus some modifications to the locker and shower rooms to accommodate women. Additionally, the department is getting new LED lighting at all three stations.
"We will be wrapping the cooling pipes to prevent condensation at the central station," Nussle said. "We are also looking at touchless faucets at all three stations as well as a temperature scanner all stations."
Much of the money being spent for the improvements will be compensated though coronavirus relief funds.
"The fire department to date has spent over $150,000 on overtime due to the fact that firefighters are in segregated stations (due to COVID-19 precautions) and we are planning on this to continue for some time," Nussle said. "The reason for the overtime increase is only firefighters assigned to particular stations can work in them, which drives up overtime costs."
MUSIC HALL
In spite of Packard Music Hall being closed for much of the year due to the pandemic, city records indicate it had revenue earnings of $286,711.66. In 2019, Packard Music Hall had earnings of $392,200.17. Next year, the city is projecting the music venue to earn $370,000.
The city pays JAC Management Group $250,000 for management of the hall. The two parties agreed to a reduction in payment of about 40 percent that did not take effect until its Sept. 1 payment. Two payments of $88,000 already were paid to JAC by the city at the time.
JAC's current five-year contract with the city began in January 2019 and is scheduled to end in 2023, unless terminated. Each side has the ability to extend the contract for an additional three years.
The last program inside Packard Music Hall was "Menopause the Musical" on Feb. 10.
JAC Management Group did receive personal protective equipment loans as part of the CARES Act because both Packard Music Hall and the Covelli Centre, which JAC also operates, were closed most of the year.
PURCHASING, OPERATIONS
Costs in the city's purchasing department declined significantly this year from the $48,025 projected in this year's budget to $16,255.08 spent through mid-November. The city expects spending in the department to increase to $50,943 in 2021.
The reduction in spending in that department comes from the March firing of former city employee Kisha Jackson, who had been accused of taking funds from a nonprofit organization.
Jackson was the sole employee in the city's purchasing department and so far, the position has not been filled. Safety Service Director Eddie Colbert expects the city to hire a new person to fill the position sometime in 2021.
The city also is expected to add two to three new employees in the operations department to work in the city's parks.
"It was determined that this department can use more employees and, at this time, (city auditor) Vince Flask believes we will have the funds to pay for the new employees," Colbert said.
The positions in the operations department have been vacant since 2018, according to Flask.
Colbert emphasized the city's ability to fill the positions will be based on whether the pandemic worsens or eases.
SUPPORTIVE
Councilmen Greg Greathouse, D-3rd Ward; John Brown, D-at Large; and Councilwoman Helen Rucker, D-at Large, have said they can support the current budget proposal.
"There is nothing that jumped out at me that would prevent me from supporting this budget," Rucker said. "I would like to see more money placed in the budget for road and sidewalk repairs."
Greathouse suggested the administration has taken a reasoned approach to the budget, especially considering funds are expected to be limited next year.
"Everyone is walking around with their fingers crossed," Greathouse said.
Flask said he is fiscally conservative when forecasting revenue coming into the city and budgeting how to spend it.
"My recommendations are that we continue to be cautious with our expenses as we see how revenue begins in the first quarter of 2021," Flask said. "We have positioned ourselves well financially ending 2020 to be able to handle a slow start to 2021 if that would occur."