Marietta leaders will use $3.7 million the city has in reserves to prevent city layoffs and cover budget shortfalls brought on by the COVID-19 pandemic.
The city will use $1.2 million in unassigned revenue to cover the shortfalls that occurred in March, April, May and June to close out its current fiscal year, which ends June 30. Another $2.5 million will keep the city running for the first six months of the fiscal year that begins July 1.
Mayor Steve Tumlin, who said the city has seen its “money evaporate,” said using the reserves will pay for essential operations residents rely on: police and fire services, filling potholes and maintaining parks.
“We are very blessed to have other sources of income,” he said.
City Council members on Tuesday unanimously approved the funding allocation during a called meeting.
City Manager Bill Bruton said 2020 started out as a good year for Marietta, with its expenditures down slightly and its revenues coming in at the projected level.
However, the pandemic has negatively affected several of Marietta’s special revenue funds. Some of the hardest hit include franchise fees, which utility companies pay to operate in the city; business license fees, which companies pay each year; recreation rental fees, which are paid by citizens who rent city facilities; court fees and fines and forfeitures, which come from police and court services; and tourism fees.
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With the reallocation, Bruton said the city now has about $12.5 million in reserves, which could cover the city in an emergency for a little more than two months.
“So we are in great shape,” he said, adding that government recommendations are to have one to three months worth of revenue in the bank to cover operations during emergencies.
Marietta staff members will reevaluate the city’s financial position this winter, Bruton said.
Councilwoman Michelle Cooper Kelly said she hopes that once the city’s finances stabilize, Marietta will be able to build its reserves back up to enough to sustain the city for three months.
“That’s what the rainy day fund is for,” she said. “And I would say it’s raining all over.”
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