The Morning Journal (Lorain, OH)
Mayor, auditor look to trim costs
Lorain public spending is on lockdown until local officials get a better idea of the health and economic effects of the novel coronavirus.
On March 24, Mayor Jack Bradley and Auditor Karen Shawver published a joint memo outlining ways to save money in the short term.
The memo came a day after Lorain City Council approved the 2020 budget.
Council had discussion about measures to take during economic recession due to illnesses, people working from home and businesses shut down due to COVID-19.
“By working together, we can all ensure that the impact on our citizens and employees is kept at a minimum whenever possible,” Bradley and Shawver wrote.
The mayor and auditor’s suggestions generally followed along with Council’s comments from the night before.
Shawver emphasized the points again March 24.
“It is imperative that we take immediate, proactive steps to curtail spending until we get through the current health crisis,” she said. “We know that key general fund revenues will be reduced, we unfortunately, do not know how long this is going to last.
“We are already three months into 2020 and the longer you wait to take any actions, the more severe and dramatic steps will be needed if we wait too long to deal with it.”
Even as people feel the economic downturn now, the city officials won’t see some effects for another two months, Shawver said.
That’s why the city must act before it is too late, she said.
Shawver predicted reductions in interest revenues, local government funds, state excise tax and permissive license tax.
Depending on how many businesses have been forced to shut down, there will be an impact on the withholding taxes.
Unemployment compensation is not taxable at the local level, Shawver said.
Cutting back
City workers who are not needed in City Hall or other offices will continue to work from home unless they are directed by a supervisor to report for duty in person. The other suggestions:
• Only use overtime under exceptional circumstances.
• Only purchase items that are essential and absolutely necessary.
• Consider a temporary freeze on hiring of all nonessential employees.
• Plan no capital outlays or projects without meeting with Shawver to determine the financial effects on the city budget.
• Clear all purchases with Safety-Service Director Max Upton to determine the financial effects on the city budget.
And generally, “everyone make every effort to conserve resources to whatever resources to whatever extent possible during this public health and financial crisis,” Bradley and Shawver said.