Councilman Mark Scharringhausen said there are a few exceptions, but wants to see the 2020 amended budget carried over through the first quarter of 2021. But he would like to see a few additions, such as funding the two police positions council decided not to fill, authorizing overtime for the fire department and providing raises to city employees.
“They certainly deserve to be made whole in 2020, but in my view, they deserve to be made whole starting Jan. 1,” said Scharringhausen, adding the city will also have to account for a transition cost to a new healthcare plan with Butler Health.
In June, City Council cut 3.8 percent, or $2.86 million, to its then-$75.6 million 2020 operating budget.
Councilman Tim Abbott said it would be “prudent” to wait until April “until we have a better idea of the budget," but would also like to have City Manager Mark Wendling to prioritize the major projects as either “critical” or “other.”
City Council is projecting 2021 revenues to be $84.58 million, an 1.07 percent increase over 2020, and proposed to spend $74.75 million, which is down from 2019 but up from the amended expenditure budget passed in June.
The projected revenues take into account the Community Arts Center inability to hold shows and performances due to the COVID-19 virus restrictions.
"With the restrictions that went into place in 2020, revenue for the Community Arts Center was virtually evaporated,” said Finance Director Scott Timmer. When shows are able to resume, the cost estimates can be amended and the budget revised.
The proposed 2021 general fund expenditure budget is set for $29.7 million, which is less than $1 million more than the amended 2020 budget. Most of the general fund budget comes from the city’s income tax, which was filed later this year due to the pandemic.
“In April, two things will happen," Scharringhausen said. “The guessing game will be over and we’ll have a good handle of what the number of requests for credits based upon remote workers will be, and also, we’ll know what the legislature and the courts have to say about the whole matter. ."
The Ohio Senate and House are considering companion pieces of legislation that would change a decades-old income tax structure to allow municipalities to tax remote workers if they work outside the city but work for a business within the borders. House Bill 754 and Senate Bill 352 would modify income tax withholding laws for pandemic-related work-from-home employees. They would be taxed based on their home residency as opposed to their employer’s location.
City Council voted Monday to oppose the Statehouse bills.
City Councilman Chad Oberson said increasing the budget “is not OK” given the pandemic.
“I just can’t see that we can spend more money," he said.
Councilman Bill Woeste said the city should use its flexibility to amend the budget and should not move forward without more investigation.
“Let’s take that time and use our best wisdom and have those discussions,” he said.
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