The City of Blue Ridge expects an $873,000 shortfall in revenue for the year.
During a special called meeting Tuesday, May 19 department heads gave updates in which Finance Director Alicia Stewart presented the city’s financials.
The General Fund will see a shortfall of 13% or $375,000, but a reserve of 25%, about $700,000, of the year’s budget is available.
With contingencies budgeted into the General Fund and a “revenue addition to fund balance” to the 2020 budget, $111,000 is left as “wiggle room,” Stewart said.
“Other things that have been discussed is delaying capital outlays which is the purchase of a new police car, tax collections on delinquent taxes, decreasing expenses by, of course, closely monitoring expenses and only buying the things that are necessary, the unemployment savings ... also apply to the General Fund,” Stewart said.
A 21% decrease in Hotel Motel Tax revenue, or $31,000, is estimated.
A 14% decrease equaling $56,000 is projected for SPLOST.
The water fund is projected to have a total decrease of 9% or $405,000.
These figures are rough estimates, Stewart said.
City Hall re-opened their drive-thru Monday, May 18.
As for the lobby, it remains closed to the public. Court Clerk & Office Manager Barbie Gerald said the staff would prefer a plexiglass barrier be incorporated across the front counter before re-opening.
Court will resume in June, but extra protocols will be enforced.
City employees have seen a reduced work schedule since the city’s COVID-19 virus related closures began, but most of them are currently up to 20 to 25 hours per week.
Since the beginning of the pandemic, the city has been processing the same amount of transactions. Work orders, 911 calls and citations are down, however, according to Gerald.
City workers have been supplied with masks, sanitizers, Lysol and disinfectant wipes.
“We sold 8.6 million gallons less water over a two month period,” Utility Director Rebecca Harkins said, which results in a $124,000 loss in revenue.
The water and sewer plant is seeing six less work orders per day, according to Harkins.
Due to less demand, the plant has issued partial lay offs, which has saved the plant $21,000.
“There are five and a half pay periods left through July 31, when the federal money kicks out, we could potentially save $117,796, leaving us only short $6,257,” Harkins said.
She said a few employees are in the office every day, and they are making sure customers needs are still being met.
“If somebody’s saying we’re not doing something please have them call us here because we are doing, Jeff will tell you, that we’re doing everything the customers ask for,” she said. “There’s nothing that we’re not doing. New taps, developments, we’ll be glad to set up a meeting if we need to set up a meeting with somebody.”
The sewer plant is currently at 40% capacity, but is in need of substantial work.
The city was recently approved for a $5 million grant through the Clean Water State Revolving Fund.
Total, the plant needs $9 million dollars worth of improvements to the infrastructure.
Mayor Donna Whitener said the United States Department of Agriculture is not doing any deferments or loan forgiveness at this time, which she had hoped for.
Planning, Zoning and Project Manager Jeff Stewart said they have gotten nine building or special use permits come in during the pandemic, totaling 27 currently, which is about half of what it usually is during the time frame.
Downtown Development Authority (DDA) Chairman Cesar Martinez gave an update on the DDA as well as the Blue Ridge Business Association.
“We (DDA) are a year old,” Martinez said. “We were a year old in April. The intention of doing the DDA from the beginning was to get funding. To this date, we have yet to be funded by this council. We cannot do our job without it, so I’m asking this council fund us. Otherwise, what do you need us for?”
Martinez explained that the authority is frustrated by not being able to take any kind of action as a result of a lack of funding.
“We’re not gonna have anybody to serve on it, to have one, if we don’t try to get it up and get it going,” Councilman and DDA Vice Chairman Nathan Fitts said.
The Pack property would be beneficial for the DDA to use for city parking, Martinez said.
DDA is unable to get a loan to purchase the property because they have no income, Martinez said.
“Somewhere along the line, somehow, the city has to be able to do that, to be able to say ‘okay this income stream, we’re gonna give the DDA X percentage’, and that is something that we can go with because it’ll be an ongoing revenue stream,” he said.
The council agreed to work something out to fund the group.
The business association’s annual Old Timers Fourth of July parade will not be held this year, according to Martinez.