By JAN LARSON McLAUGHLIN
BG Independent News
Ten months ago, Bowling Green officials asked city government to tighten its belt and asked local residents to comply with health precautions against COVID-19.
No one knew how COVID would damage local businesses, and how much it would eat into the city’s finances.
Last April, council member Greg Robinette spoke about the future that may be facing Bowling Green. While the full health and economic scope of COVID-19 was unknown, he predicted the current closure of businesses would grow in number and in duration.
The city should prepare now for its tax revenues to be down – “very likely, significantly so,” Robinette said.
The city will have to concentrate its efforts on safety issues, utility services and on helping those citizens hit the hardest by the pandemic, he said.
“A crisis of this magnitude requires new thinking,” Robinette said.
Ten months later, Robinette applauded the city’s ability to navigate through the crisis.
“I think we’re starting the year off on solid footing,” Robinette said earlier this week. “We have been a very good steward of our taxpayers’ money.”
On Tuesday, City Finance Director Brian Bushong presented a quarterly financial update to the finance committee of City Council.
“We’re feeling good. We’re finally putting 2020 behind us,” he said.
“We had a better 2020 than any of us would have guessed.”
Early actions by city officials helped save jobs, Bushong said.
“We appreciate the unions working with us,” when asked to freeze or reduce their budgets, he said.
When COVID first hit, Bushong worried about the two biggest revenue sources for the city – income tax and electric use.
Before coronavirus became a household word, the city’s financial projections called for $21.6 million in income tax revenue for 2020.
“Then COVID occurred,” Bushong said.
Businesses closed for a period, and some never returned. Those that did re-open, saw their revenues affected.
But by the end of 2020, the city’s income tax revenue had rebounded to finish out the year at $20.5 million – just 6.7% less than projected.
Another lifesaver for the city budget came from CARES Act funding that added up to $2.4 million. Though limited in how the money could be used, the city was able to fill in some areas with the CARES money, such as:
- Salaries and fringe benefits for police and fire divisions, $1.7 million.
- Provisions for employees so they could telework from home, ambulance equipment and touchless features, $613,623.
- Barriers, cleaning supplies, masks and wipes, $20,344.
- Mobile equipment, license fees, software, $16,000.
“That was a huge help,” Bushong said.
Also helping the city finances was a $1.75 million refund from the Bureau of Workers Compensation.
“We had a very good year thanks to the CARES Act and refunds from workers compensation,” he said.
Meanwhile, the city offices did their best to cut expenses, Bushong said. Expenditures predicted at the beginning of the year to be $19.1 million, came in at $15.5 million.
“It’s hard to put a negative spin on this – even for the finance director,” Bushong said.
Some departments were affected more than others, such as the parks and recreation department, he said. Programs had to be canceled, rentals were halted, and the pool was shuttered for the summer.
“COVID was really tough on parks and recreation,” Bushong said.
That department made difficult decisions.
“They had to react and the chart shows they reacted very well,” he said.
“We’re hoping that 2021 will look much better,” Bushong said.
Though Bushong credited the CARES Act funding and workers compensation refund for saving the city budget, Robinette suggested that actions by city officials made a huge difference.
“It’s also you and everyone else in the administration just being good stewards of the taxpayers’ money,” Robinette said.
Council member Sandy Rowland said the citizens of Bowling Green should realize that the city has been “exceptional in managing their monies.”
The city continued to provide all of its core services throughout the year, “and yet we are able to keep our budget in check,” Rowland said.
