The city of Emporia is working diligently to assess the potential financial impacts to the city due to the ongoing COVID-19 pandemic.
City Treasurer Janet Harouff presented a financial update and review to city commissioners during their recent study session Wednesday morning. Harouff explained she has conducted a thorough review of all city funds and departments to gain a better insight to potential impacts.
This is no easy task, however, as Harouff explains there is a significant lag time for tax collections in the city.
Due to the uncertainty surrounding the financial impacts which could be the city is planning to hold off on capital purchases when possible to help preserve cash and considering deferring capital outlay expenditures for certain city projects. Another adjustment that could be made in the near future is a shift to the 2021 budget cycle, a suggestion made by commissioners Rob Gilligan and Jon Geitz.
With this being the time of year where budget discussions typically begin, Gilligan stated that doing so without knowing the full scope of impacts would be a “exercise in futility.” Geitz echoed the sentiment and also recommended the city sending out a letter to all organizations which gain yearly appropriations requesting them to provide their 2021 budget request “as if nothing has happened” as well as their 2020 budget request if they were forced to take a 25 percent cut.
Geitz says this would give commissioners a more thorough understanding of what impacts these organizations could be facing if the city were not able to meet the original requests.
Harouff says pushing back the budget process is possible, however, it could put the city on a time crunch as budgets, as of now, still need to be submitted to the state by August. According to Harouff the city will continue assessing the financial situation on a weekly basis and make adjustments as needed.
The Emporia City Commission will hold a virtual action session next Wednesday at 7 pm.
