By CHARLENE LOVETT
By Charlene Lovett
As in all crises, the first order of business is to respond to the immediate situation. Once platforms and processes are in place to do that, there comes a time when the focus transitions to recovery. Our calls with the White House Office of Intergovernmental Affairs, members of our federal delegation and Gov. Sununu suggest we are in that transitional phase. Developing a coordinated plan to re-open the economy while simultaneously protecting public health and safety will be challenging, but critical for both the private and public sector.
In the public sector, recovery plans will be reflected in upcoming budgets. Municipalities across the state are accounting for unanticipated expenses and lost revenue resulting from COVID-19 and, at the same time, creating budgets that will facilitate recovery. Here at home, City Manager Morris will present his proposed budget for fiscal year (FY) 21 to the council in May. Given the unknowns regarding revenues, budget discussions this year will be particularly challenging. However, there is some good news.
On April 23, the city manager and I participated in a conference call hosted by the governor with the mayors. There was a concern whether the one-time funds allocated in the state’s approved budget to municipalities for FY21 would remain intact. The governor assured us that he had no intention of withholding those funds. This was well-received given the city of Claremont is slated to receive over $341,000 for capital improvement projects and approximately $2.5 million in education funding in FY21.
The other piece of good news is that the governor confirmed that the city will be reimbursed for all COVID-19 related expenses. Approved federal funding assistance packages provide the monies needed to reimburse municipalities for expenses incurred during the pandemic.
Therefore, the city administration will be tracking all COVID-19 related costs and submitting requests for reimbursement. By utilizing these federally released funds, the costs will not be absorbed by local taxpayers.
What is unclear at this time is whether there will be federal funds to address the loss of state and local revenue due to COVID-19. Revenue streams such as the meals and rooms tax, the gas tax, various fees and block grants are being negatively impacted. To date, approved federal funding packages do not provide for such assistance. Fortunately, our governor and federal delegation are aware of this critical need and strongly advocating for a federal funding package that will mitigate revenue losses.
This unknown will make budget discussions challenging. However, the assurance of receiving our state approved one-time funds and reimbursement of COVID-19 related expenses will help facilitate recovery. Additionally, as our auditors noted in their report for FY19, our unassigned fund balance is healthy and well within our established policy, giving us yet another tool to navigate the current environment. This, coupled with an aggressive approach to mitigating revenue losses, will ensure that we go into FY21 with a budget that supports resiliency and fosters recovery.
Charlene Lovett is the mayor of Claremont and a 22-year Army veteran. She welcomes your feedback. Please email questions, comments or concerns to her at [email protected].
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