VTDigger posts regular coronavirus updates on this page. You can also subscribe here for daily coronavirus news. Please send your Covid-19 questions to coronavirus@vtdigger.org
Burlington is expecting a dramatic reduction in city revenues over the next 15 to 24 months and will be adjusting its budget for the next two years in response to the coronavirus pandemic.
The city expects $15 million in lost revenues over the next two years, $5 million in fiscal year 2020 and $10 million in fiscal year 2021, in a “bad case” scenario. Revenue-generating taxes and fees from economic activity are projected to be slow to return.
The City Council discussed the city’s financial position at its meeting Monday, including a portion in executive session to discuss labor-related issues. The council also approved a request from the airport for authorization to accept an $8.7 million grant from the federal stimulus bill.
Burlington Mayor Miro Weinberger presented an initial financial plan and said the city would be cutting expenses, replacing revenues and borrowing to make up the difference.
“We do think that getting through this massive challenge, this really unprecedented challenge, is going to require shared sacrifice,” he said.
The city has already started to cut expenses, Weinberger said. It has instituted a hiring freeze and cut back on discretionary line items in the city budget like travel and training, he said.
The city has nearly $13 million saved in its reserves, or “rainy day fund.” Weinberger said that the city’s reserves were at historic high levels.
“We should definitely be looking to reserves to help us get through this turbulence, this difficult period with the city and the city team intact, and without losing these municipal services the Burlington public has shown and told us year after year they want,” he said.
Weinberger said that he believed the city should use its reserves to cover half the $15 million gap, but should not drain the funds in case they are needed if the virus were to linger or come back in a second wave.
Weinberger said that the city was cognizant that many taxpayers have been dramatically affected by the pandemic and are not able to pay increased taxes. He said that the city would treat city employees fairly and ensure that budget adjustments do not hurt vulnerable residents.
The city could get funding from the federal government to help cover the gap, a measure Congress is discussing. Weinberger said that it would be remarkably unjust if the federal government did not provide financial help to municipalities after bailing out industries.
“It would be totally unjust if the federal government, having recognized this emergency is having unavoidable impacts on the revenues of those other industries, then says, sorry, we’re not going to do anything for local governments that are being hit by exactly the same pressures,” he said.
Councilor Brian Pine, P-Ward 3, said he hoped the city could pursue a balanced approach, using reserves, borrowing and some spending reductions to help the city get through the crisis.
Pine said that the city should make sure it doesn’t reduce staffing and services to “starve our local government and cause harm to our citizens and workforce” during the shortfall.
Weinberger said that the virus had been “absolutely devastating” on the city’s budget already.
“This is a challenge that those of us who have been working with the city’s finances in recent years have really not faced over the last eight years,” he said. “We’ve been fortunate to have a stable and growing economy. … That all changed quite dramatically in mid-March with the arrival on our shores of the coronavirus and the associated illness of Covid-19.”
Weinberger said that the city’s finances depend on income from fees and taxes from restaurants, bars, hotels and other economic activity. This income has taken a serious hit during the coronavirus-related shutdown, he said.
The city is also anticipating substantial delayed revenues, Weinberger said, as the council extended property tax deadlines after the start of the pandemic.
The council approved the airport’s request for authorization to accept an $8.7 million grant under the federal Coronavirus Aid, Relief, and Economic Security Act, in an 11-1 vote with Councilor Perri Freeman, P-Central District, voting against.
Gene Richards, the director of aviation, said that the $8.7 million was much more than the airport had anticipated, and said the funds would be used for salaries, utilities and to pay off some debt.
The council unanimously passed an updated social media policy following the Burlington Police Department’s social media scandal last year.
Former police chief Brandon del Pozo resigned in December after he admitted he had operated an anonymous Twitter account that criticized local activist Charles Winkleman. Former deputy police chief Jan Wright also resigned after she admitted she had used anonymous social media accounts to attack critics and defend the department.
The policy states that employees “may not intentionally mislead or misrepresent themselves to any member of the public with the intention to influence any official or member of the public regarding City business.”
The policy states that employees are expected to be “truthful, courteous, and respectful” when using social media.
“Employees must avoid posts that contain content that is regarded as bullying or threatens violence, that have the effect of harming, insulting, degrading or defaming others, including work colleagues, or that the employee knows to be false to harm another’s reputation,” according to the policy.
Violation of the policy can result in discipline up to dismissal.
Get the latest statistics and live updates on our coronavirus page.
Sign up for our coronavirus email list.
Tell us your story or give feedback at coronavirus@vtdigger.org.
Support our nonprofit journalism with a donation.
