When it comes to finances, dealing with a global pandemic has taken its toll nationwide. While it has had an impact on the City of Bradford’s 2020 budget, the effects are not impeding the city.
“2020 was a year unlike any other. It presented plenty of challenges for those of us at City Hall to work around, but it also presented many opportunities to steady and guide our city through these unprecedented times,” said City of Bradford Mayor James McDonald. “Not only is the police department on track this year as far as the budget goes; every single department is coming in under budget this year and there will be no tax increase in 2021.”
Revenues and expenditures both show the effects of dealing with COVID-19 and related measures.
“We are in the same position as many municipalities, 2020 has proven to be a difficult year for revenue streams. The Current year General Fund had anticipated revenues at $10,071,659.00 we are currently at $8,906,981.43 for a difference of $1,164,677.57. With an anticipated end figure of approx. $9.6 to 9.8 million dollars,” City Administrator Chris Lucco said Monday.
Lucco explained that, while the difference of over one million might seem daunting, there are multiple factors that contribute to the number. This includes approximately $400,000 that is budgeted to be moved from the Capital Reserve Funds to the General Fund.
“This is done most years to fund operational costs through the end of the year, we have not had to do this as of yet and are hopeful it will not have to take place. This money is then paid back into the Capital Reserve typically in the first quarter of the new year,” Lucco said. “Capital Reserve is the City’s ‘savings account,’ so to speak.”
Another area contributing to the deficit is the $150,000 in revenue that the City receives from timber sales on the water shed. Lucco explained that city officials have not yet asked for nor received this revenue, as it is typically deposited closer to the end of the calendar year.
“Outside of those two figures — which account for 50 percent of the shortfall — we are down about 6 percent in expected revenue,” Lucco said.
According to Lucco, the largest declines were in the following areas:
— Miscellaneous taxes: including but not limited to – Business Privilege, Mercantile, LST, and — Earned Income Taxes: Although this was not expected it is understood that being in the midst of a pandemic that unemployment is up, payrolls are down, and the sales and service industries are struggling.
— Ice Rink and Pool Rentals and Concessions: However, the offset of labor and operational costs offset this cost well above the experienced loss.
— Parking Meter Fines and collections as well as other City Fines are well below normal: again, a clear result of the pandemic.
— Realty Transfers, Code Enforcement, Building Permits, other permitting and licensing costs saw a large reduction as well, again this is a national trend that is being driven by COVID-19, and efforts to mitigate the virus.
“The last area that we saw a large decrease was in ambulance revenues. Calls were down substantially this year; experts have also said this is a trend throughout the country as people have not been utilizing the ambulance and hospitals as normal during the pandemic,” Lucco explained.
Meanwhile, a bright note for the times: the city’s expenditures are coming in below projected.
“On the Expenditure side of things, the City of Bradford has fared quite well when all things are considered. The end of year anticipated expenditures will likely come in close to one million dollars below the $10,071,659.00 budgeted expenses,” City Administrator Chris Lucco said. “The city of Bradford had the foresight to make adjustments at the onset of the pandemic and took steps to reduce staffing, and non-essential services. The reduction in budgeted salaries for the City in 2020 was nearly $400,000.00; a large portion of this was from the forward thinking of City Council to furlough the non-emergency service workers.”
Lucco explained that the reduction in staff created savings in other expenses as well, such as less fuel and repairs to vehicles. The closure of the pool as recommended by the Department of Health saved in utility, chemical, and other expenses.
“Several costs that were above normal were some overtime in the police department and fire department; they were about 7 and 9 thousand dollars over. The police department was hit with COVID, and an internal investigation, and the Fire Department has been plagued with injuries and illness this year,” Lucco said. “Outside of some overtime issues and unexpected increases in insurance and pension payments, every department in the City came in under budget.”
The current status of the city budget is the result of careful fiscal efforts of many.
“I can not say enough about the department heads and their employees for being watchful of spending and maintaining budgets in a year that very well could have been fiscally catastrophic,” Lucco said. “I believe that in a year that is likely to cripple so many small governments that we are on track to finish the year in a better place than we have been in recent history.”
Mayor McDonald was in agreement, noting that things look promising for the year ahead as well.
“City Administrator Chris Lucco and all of the department heads have done a phenomenal job of reducing expenses for this upcoming year while planning on maintaining a top-rate level of service to the public,” McDonald added. “The department heads each submitted realistic budgets that have shown them to be good stewards of the hard-earned dollars that the city receives from taxpayers.
“I am optimistic that 2021 will provide even more opportunities for the city to flourish and prosper under the watchful eyes of our elected and appointed officials,” McDonald concluded. “The city of Bradford truly has a great team in place to deal with whatever comes our way.”
