LARNED — At the special called meeting of the Larned City Council last Monday night, members revisited the April 6 discussion regarding efforts the city could take to provide relief to residents and businesses affected by the COVID-19 pandemic. Concerns about predicted tax shortfalls resulted in the council once more delaying action on the topic until May.
City Manager Brad Eilts presented background on the issue so far. While federal and state focus efforts on direct payments and benefits to individuals, businesses and institutions, he said, “local governments are trying to get a grasp on the effect the pandemic and subsequent mitigation efforts will have on the local economy and the resulting impact on property and sales tax revenues, utility sales and receipts, and ultimately on their ability to operate effectively for its citizens with potentially decimated budgets.”
Essentially, tax dollars and the money brought in from the sale of utilities make up the majority of income cities receive. Larned also provides residents with sanitation services. With many businesses closed, utilities usage is down, as is sales tax collection.
State reports in mid-April reflected collections in March, which showed only a mild decrease, but local governments are bracing for April’s figures, which will be out in May. Record low oil prices are expected to be a factor in lowering property tax values in the near future as well.
Eilts boiled down Larned’s present strategy for preparing for budget shortfalls, which has involved analysis of measures under its direct control. For now, departments have temporarily frozen major purchases, most hiring, and projects slated to start later in the year. Projects that are already underway, including Moffet Stadium, Schnack Fountain, the golf course parking lot and the swimming pool renovation, will be completed. The administration has also been looking at operational approaches it can take to deal with revenue shortfalls. All together, the city can shave $558,655 of the current year budget, according to Eilts.
Four policy options council members briefly considered for local assistance included: temporarily waiving utility charges, temporarily reducing rates of charges, amortizing outstanding balances on utilities and allocating additional monies to aid agencies such as the Ministerial alliance, and even extending assistance to local businesses.
Mayor William Nusser liked the idea of funneling assistance through the Ministerial Alliance’s Helping Hands program. Already, the city provides money every year which the program administers to those in need of help paying utility bills. Council member Sharon McGinnis agreed that the organization does a good job of assessing needs. But, the program is designed to help residents only.
Dennis Wilson advocated for the small businesses he said are being hit hard by closures. He wondered what it would take for Helping Hands to administer to small businesses as well as residents.
But, Kim Barnes wondered if there was truly a need at this point, with businesses like grocery stores and drive-in restaurants and hardware stores appearing to be very busy. Larned City Clerk Kara Rath noted that the city had seen fewer red bills in April than the past. And, refunds from the Midwest Energy overcharges will be sent to customers beginning in May.
Jason Murray opposed the Helping Hands suggestion.
“It essentially means there is no recourse to get the funding back in the future,” he said. He preferred deferring payments or late fees over giving money away.
Barnes noted many who are eligible for unemployment will also be getting a $600 a week bump, so they may end up making more than they normally would during normal times.
McGinnis advocated for senior citizens. She said Social Security recipients were not receiving the bump. They only received the $1,200 disbursement from the Cares Act.
“Some people are getting a little more help and some a little less help,” Sharon said.
And, while Barnes reported Farmers Bank had received 266 applications for Paycheck Protection Program loans, it was uncertain how many small businesses received approvals.
Murray and Nusser suggested the council should track the data for a few more weeks and table the discussion until the upcoming May 4 regular city council meeting. The rest of the council agreed.
Noting that the governor’s executive order to stay at home is scheduled to lift on Sunday, May 3, the council agreed to meet once more via Zoom rather than in person out of an abundance of caution. The public will be provided with instructions for attending the meeting through the city’s website.
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April 26, 2020 at 02:15AM
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Larned City Council discusses pandemic assistance - Great Bend Tribune
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