Following a lengthy discussion with administration officials during its finance committee meeting, the Fall River City Council last night voted 8-0 to approve Mayor Paul Coogan’s proposed one-month appropriation to pay city expenses for the month of July.
Cities and towns across the Commonwealth were given the option to begin the new fiscal year by adopting a one-month spending plan while the legislature decides how the COVID-19 pandemic will impact aid distributed to cites for government services and education. The total amount of the appropriation for July is $24.75 million.
During the council’s finance committee meeting, Director of Financial Services Mary Sahady laid out the current state of fiscal affairs for the city and projected deficits if state aid is level-funded, or cut by as much as 20% over FY 2020. Under the level-funded scenerio, the city could see a deficit for FY 2021 of over $12.6 million. The state has already announced that it will be providing level-funded state aid to cities and towns for the months of July and August.
Mrs’ Sahady stated that the state legislature is planning to vote on a full FY 2021 state budget sometime next month. Depending on the timing, the council may be asked to approve another one-month appropriation to cover expenses for August. The administration hopes to present a full FY 2021 city budget to the council by July 31.
Under the one-month appropriation, the city will not impose any layoffs and will also delay the filling of positions currently open in city government.
The council last night also approved full FY 2021 budgets to fund the city’s Emergency Medical Services and its Water and Sewer Divisions. The water and sewer budget calls for rate increases to city residents costing the average household an extra $20 for the year.
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