Finalizing budget, city considers future parks needs

In the midst of an economic setback associated with the COVID-19 pandemic, city commissioners opted to dip into reserve funds to avert proposed cuts to parks and recreation offerings.

After approving a budget for fiscal year 2021 on first reading Sept. 10, some board members want a plan in place to avoid a similar dilemma next year, when the county is scheduled to stop making $881,000 in annual payments to support city parks.

“Next year it’s going to be a real problem,” Commissioner Shelli Freeland Eddie said.

Freeland Eddie proposed a possible solution that drew support from a majority of the board but concern from others and city administration. The city has a revenue stabilization fund of $2.53 million set aside for general fund operations in case of an unforeseen hit to city revenues. So far, COVID-19 hasn’t triggered the threshold the city established to spend stabilization funds: The city must experience a 3% decline in revenues, and Finance Director Kelly Strickland said city revenues are down about 1.5%.

Freeland Eddie moved to amend the restrictions to allow the spending of that money for parks, a proposal that passed 3-2 with support from commissioners Hagen Brody and Willie Shaw.

Assistant City Manager John Lege said the revenue stabilization fund was set up in case of emergency, describing it as an extra layer of security should other sources of money prove insufficient. City Manager Tom Barwin said that, although COVID-19 has created challenges for the city, he did not believe it warranted a focus on revenue stabilization funds right now.

“It's your ultimate backup,” Barwin said.

City Commissioner Liz Alpert questioned why the city would consider using revenue stabilization money when the 2021 budget includes $19.8 million in unassigned general funds.

“I just don't like the idea of raiding this rainy-day fund and lowering the percentage that we have to get to before we can use that,” Alpert said. “It seems like it would make a lot more sense to just take it out of our regular reserves.”

Freeland Eddie said she did not make the proposal lightly, but felt COVID-19 represented a significant threat to city revenues and questioned whether a more appropriate time to spend the funds would arise.

"It's a restriction that we have placed on ourselves, and if ever there were an emergency where we were having issues, where we were going to take a major hit in the budget year, this is one of them,” Freeland Eddie said.

Although a majority of the commission backed Freeland Eddie's push to allow more flexible spending of stabilization funds, the board did not commit to using the money for parks operations in the future. Barwin said city staff would prepare more formal language regarding changes to the revenue stabilization fund for discussion at a future meeting.