CLINTON — The City of Clinton is facing the loss of $740,000 in revenue due to closures during the coronavirus pandemic, Finance Director Anita Dalton told the city council Tuesday.
“We’re not in a crisis situation,” Mayor Scott Maddasion said Wednesday. “We were able to move some funds to cover that.”
The shortage is in addition to a $1 million deficit the city expected in fiscal year 2021, a deficit that prompted the city to approve a franchise fee to cover the shortage.
Dalton walked the city council through a resolution Tuesday which transfers money from other city funds to the General Fund to cover shortages projected “mostly based on COVID-19.”
“Everybody knows the casino was closed for … 75 days,” Dalton said. “We’re anticipating a shortage of $95,000 from that.”
With the lack of travel during national stay-at-home orders and the shutdown of businesses, Clinton’s hotel/motel tax revenue will be about $161,300 less than anticipated.
Revenue from recreation is down, Dalton said. “Some of it’s from Eagle Point Lodge. We did have to issue some refunds.” Lodge rentals will be about $40,000 less than anticipated, she said.
The pool will lose about $20,000 in revenue. Though the facility opened recently, it has limited its use to lap swimming and swimming lessons, Dalton said.
“The adult sports leagues generally start by now, so there’s some revenues there that I’m predicting … to be short.”
The city has lost revenue from the lack of youth sports as well, Dalton said. “Spring soccer’s one of the biggest programs … that the recreation department runs, and that did not happen that year,” she said.
The loss of revenue to from recreation will total about $126,400, Dalton said.
The closure of the campground will cost the city about $23,324 in revenue.
“These are shortages based on what we’ve budgeted,” said Dalton.
Building and Neighborhood Services revenues will be down about $200,000, said Dalton, though that’s not COVID related. “There were some industrial and commercial permits that were budgeted for that haven’t occurred yet,” she said.
Ambulance revenue will be down about $100,000. Police protection fees charged during school events — which did not take place this year — will be about $30,000 less than budgeted.
The library lost about $7,500 while closed.
Dalton expects a total budget shortage of $740,583.
To keep the General Fund from being depleted, the city will move money from other areas such as the Solid Waste fund, which has about a $1.4 million balance, Dalton said. A couple of years ago it was showing a deficit, “so that fund has really turned itself around.”
A half million dollars will come form the self-insured health insurance fund. “We made some changes for our prescription drug plan last year,” said Dalton, “and we’ve seen some savings there, and we’ve built some equity. … There’s plenty of money to transfer $550,000 out of there to support the general fund.”