When the Fall River City Council meets tomorrow night, it will again have before it a one-month budget from Mayor Paul Coogan to cover expenses for July, the start of the new fiscal year.
At its meeting on June 9, the council voted 8-1 to wait to approve the mayor’s proposed $24.7 million one-month budget, seeking more information on what a full-year spending plan may look like.
In its packet for Tuesday’s meeting, the council received a more detailed explanation of what a city budget may look like, with a focus on revenue projections but no details on what may need to be cut if revenue for the year falls short.
The administration continues to argue that there are too many unknowns about how revenue will be calculated for the new fiscal year. given that the state has not come to an agreement as to what state receipts will look like. The legislature will also consider a one-month budget in the coming week.
In its report to the council, the administration said prior to the pandemic, revenues and expenditures were on track to meet budget projections for FY 2020. Since the pandemic, the city estimates it las lost approximately $1.5 million in local revenue from parking fees, meals excise taxes, and taxes from medical and recreational marijuana sales.
Even though the city has received slightly over $12 million in federal and state COVID-19 aid, few guidelines have been issued as to how the city can spend the money on pandemic vs. non-pandemic-related expenses.
The administration presented three budget scenarios for the council, one with a level-funded state appropriation based on FY2020, one with a 10% reduction in revenue, and one with a 20% reduction in revenue. The comparisons were shown against what Governor Charlie Baker had proposed for FY 21 revenues for Fall River prior to the pandemic. Here is a rundown on what the city could expect to lose in revenues under the three budget scenarios;
- Level funded revenues: A decrease in funding of $11.8 million
- 10% reduction revenues: A decrease in funding of $14.6 million
- 20% reduction in revenues: A decrease in funding of $29.2 million
Much of the revenue deficit will impact the school department, which had been anticipating an increase in funding from the newly-implemented Student Opportunity Act. The administration is also projecting a decrease in local revenue receipts for the new year of nearly $750,000.
Without providing specifics, under a level-funded budget the city is anticipating an $11.2 million deficit in the school department, $794,00 in public safety and $823,000 in the general government. The cost of financing existing negotiated union contract raises will impact the city to the tune of nearly $900,000.
The administration did provide a list of 28 current employee vacancies within city government that, if unfilled, could save $1.355 million. Among the vacancies are 13 police officers and four firefighters.
The city also listed capital projects totaling $533,000 that could be shelved. Capital funding for police and fire department needs may be covered by pandemic-related funding sources.
Currently, the city has reserves totaling $7.4 million. There were no details as to any plans to use any of these funds for FY 21.
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