Here’s how the coronavirus economy has affected the city of Belleville’s finances
The city of Belleville’s revenue is down about $580,000 because of the coronavirus’ disruption to the economy this year, but employee furloughs, layoffs and other budget cuts have kept the city from going into deficit spending.
When the virus first hit the economy in the spring, city officials feared the drop in revenue could hit $1.5 million. But revenue loss did not reach that estimate and most of the 56 employees who were furloughed in May have been able to return to work. Eight part-time library workers were recently laid off and four part-time city employees and three full-time employees remain on furlough.
The $580,000 in lost revenue was caused mostly by lower sales tax and income tax. This is revenue would have gone to the $29 million general fund, which is used to pay for the day-to-day operations.
“We originally didn’t know what to expect,” Mayor Mark Eckert said. “I hate to tell you but I’m happy we’re only (down) $580,000. We could have been a million and a half.
“Everything we do is based on revenue projections. These people were laid off because of revenue concerns. They weren’t laid off because they weren’t performing their jobs.”
Library cuts
The cost-cutting measures have included closing the city’s two library buildings to the public while maintaining curbside services during the pandemic.
Eckert said the buildings at 121 E. Washington St. and 3414 W. Main St. are not open to the public because the city didn’t have the funding to keep the place sanitized after people walk around, use the computers and handle books.
Library employees and residents who support the library have criticized the city for not reopening the library. But Eckert said the city doesn’t have the custodial staff that would be needed to make sure the library was safe for people to visit.
“When people come into the library, they touch a lot of different things,” he said.
Economic outlook
While many bars and restaurants have had to reduce services or even close during the coronavirus pandemic, other places that generate sales tax revenue have performed well.
Eckert said the city’s sales tax revenue has been supported this year by grocery stores, large retailers and home improvement stores that have kept up brisk sales this year.
One area of concern is the amount of income tax revenue the city will receive this year and in the future, according to Jamie Maitret, the city’s finance director.
“And that’s a revenue that we’re really worried about over the next year that it’s going to continue to be down as a lot of these businesses report less income to the state, individuals who are out of work report less income to the state,” she said. “That will have a trickle down effect on us for the next year plus.”
As far as the Christmas shopping season, Eckert said he is disappointed that large downtown events such as the Santa Parade had to be canceled in an effort to help prevent the spread of COVID-19 cases.
He still encourages residents to support businesses in the city.
“We’re hoping that the people, as we decorate, as we encourage people to come shop Belleville, we ask that they shop Belleville with a very careful set of values and rules because they’re very vulnerable,” he said. “Wear your masks and shop in small groups and keep your distances.”
