As city of Bellefontaine leaders brace for the economic fallout resulting from closed businesses and stay-at-home orders issued to curb the spread of the coronavirus, City Auditor Fred Brentlinger compares the situation to rowing a canoe towards an approaching waterfall.
“It might seem calm at the moment, but you can hear the rumblings downstream and can tell that waterfall is on the horizon,” Brentlinger said Tuesday during a finance committee meeting ahead of a regular session of the Bellefontaine City Council. “We just don’t quite yet know how steep that waterfall is going to be.”
City officials are projecting lost income tax revenue upwards of $1.5 million, and as a result have frozen capital spending projects for each city department. Spending initiatives to upgrade or replace equipment that were previously approved as part of council’s permanent appropriations budget have since been put on hold as city leaders wait and see just how turbulent the forthcoming waterfall will prove to be.
Decreased tax revenue consistent with what’s currently being projected would put the city’s General Fund balance in line with 2015 numbers, Brentlinger said, noting that while not ideal, it would not pose an immediate financial threat to council’s overall General Fund balance.
Recreation programs such as summer ball teams that are currently on hold because of COVID-19 have also meant that fewer people are being employed through the city. There’s been a freeze on part-time, seasonal hires that usually are made in the summertime to help with beautification projects and to do things like line ball fields.
Myeerah Nature Preserve has also been wildly impacted because of the forced closures. Camp Myeerah is entirely self-sustaining and operating revenue comes from facility rental for large gatherings, and weddings.
Facility reservations for special occasions such as weddings have been entirely refunded, and the current fund balance in the Myeerah account currently is about $300, finance committee members were told.
“As an accountant we’re also under-projecting revenue and over-projecting potential losses, and so I really am hoping that my projections (of lost tax revenue) are way over and they won’t be that bad,”
Brentlinger said. “We’ll start to know more with collections starting in May.”
One improvement project to improve the health and safety of local first responders was completed Tuesday afternoon.
A diesel fuel extraction system has been installed at the Bellefontaine Fire Department to help reduce the amount of potentially harmful fumes ingested by city firefighters. That system cost about $72,000 to install, but was paid for nearly entirely by federal grant dollars.
Matching grant funds cost the city $3,600 and the balance in excess of $68,000 funded by grant funds, council members were told.
As part of the continued precautions against COVID-19, council chambers remain closed and Tuesday’s meeting was broadcast online via Facebook live.
Mayor Ben Stahler indicated that he expected the next regular council meeting on May 12 to also be closed to the public, and broadcasted online via social media or another platform.