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Covid impact and town budget

July 7, 2020 by Guest Post

By Tonya Eckert, Stevensville

Mayor Dewey is proposing to push through a budget in early July, prematurely asking for extreme increases that are irresponsible and frankly make no sense at all in light of the economic impacts of Covid. Last year the Mayor did not even present a preliminary budget until Aug. 12th, the budget isn’t due until the first of September.

Impacts of Covid: Most communities are delaying budget action for the following reasons: Many communities are projecting a significant increase in delinquent property taxes. Some towns are projecting instead of typical 6-8 percent delinquency rate up to 18% because of the Covid Virus fall out.

Taxes are not due till July 15th, there is no way to project revenues at this time. Down the road there may be a potential of some businesses not being able to survive the Covid and those entities may drop off the tax rolls. This would put people out of work and make it harder for them to pay taxes as home owners. This could come as late as November.

Travel is down due to Covid restrictions. This will reduce the amount local governments get in gas tax revenue. Events are being cancelled such as Heritage Days and Creamery Picnic, that not only bring in revenue but draw people from out of town who spend money.

Many communities are trying to keep budgets neutral. They are proposing no new positions and no new capital projects. Some are actually making cuts, including summer staff and recommend hiring freezes. Finally, they are calling for no increases in taxes or fees.

Mayor Dewey, on the other hand is proposing some large pay raises for certain employees as high as 20%. He is asking to double the town’s attorney compensation from what was budgeted last year. He is asking to increase his own salary from $12,000 a year to approximately $20,000 a year. On raises, employees last year got a 2 percent raise. This year some businesses are having to do layoffs. The mayor is requesting new employees. He is asking for money to purchase another vehicle that is not needed, money for leasing additional building space, while requesting to increase fees on local citizens.

Please contact your council members and the Mayor and ask them to be fiscally responsible to all the taxpayers of Stevensville. Ask them to please delay action on the budget until we know what the projected revenues are. Do not spend money we do not have in order to prevent possible future cuts, layoffs and increased taxes due to economic impacts of Covid.

Many of our citizens are hurting, due to Covid; lack of jobs, income etc. This is not the time for any increased spending or premature budget approval without knowing what the revenues are.

 

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Filed Under: Opinion

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