FALL RIVER — Coronavirus pandemic or not, a city has to run and that includes moving ahead to pass the 2021 budget.
“As of right now, I have met with each of the department heads, both with the mayor and individually," said Mary Sahady, director of financial services and interim city administrator. "We’ve met all of the departments' needs and, to some extent, their wants."
Sahady has assembled what she referred to as a "rough draft" of the budget. "It will be well-balanced," she said.
By order of the charter and state law, Sahady said Mayor Paul Coogan must present the new budget to the City Council by May 15.
“If the mayor does not submit his budget by that date, the City Council can then submit their own budget,” Sahady said.
The administration has reached out to councilors and is scheduling either in-person briefings or remote calls with them to discuss highlights of the budget and any needs they believe should be included.
As for the current state of affairs in the city and the current budget, Sahady said she had worries about the city’s revenue stream in the fourth quarter.
“For 2020, my real concern is motor vehicle tax revenue,” said Sahady.
Residents who failed to pay vehicle excise tax bills in the first billing cycle should be getting demand notices from the city, but the company that mails those notices has been closed due to the coronavirus pandemic.
The bills in the second excise tax cycle have not been mailed because much of the city’s staff is working remotely from home, although some employees have agreed to go to Government Center to help with the matter, Sahady said.
“That’s a $1 million commitment. To put this all in perspective, last year during the fourth quarter we collected almost $1.9 million,” said Sahady. “Right off the top, we’re going to be $800,000 to $900,000 short by June 30.”
Based on a talk with the city collector, Sahady said Fall River will be lucky to collect $1 million of last year’s amount owed before the end of the fiscal year.
The city also is dealing with the loss of recreational marijuana revenue after Gov. Charlie Baker closed all nonessential businesses through the end of the month. While other states have classified the sale of adult-use recreational marijuana as essential, Massachusetts has not.
Prior to the closure, the city was collecting an average of $100,000 a month from recreational marijuana dispensary Northeast Alternatives.
Parking fines are down as people stay home and the city temporarily suspended parking fines. In the fourth quarter of last fiscal year, the city collected $380,000 in parking fines.
“This year I’m predicting we’ll be lucky to collect $125,000,” said Sahady. “So we have some big areas of receipts that are going to be of concern to me in the FY2020 budget.”
Sahady said she isn’t too concerned about collecting real estate taxes because many owners pay the taxes through their mortgage.
The administration has pushed the real estate tax due date from May 1 to May 15 in the hope that by then, Government Center will be open again and able to accept cash payments from residents.
Coogan said the city took advantage of Baker giving communities some flexibility.
“We’re trying to stretch it out, but even then we’re going to work with people,” said Coogan. “This needs to be a very forgiving time for everyone, and we’re trying to make sure that people are doing what they’re supposed to do, but with some empathy.”
City Council President Cliff Ponte said he has scheduled an April 14 council meeting.
“At that point we will be having our quarterly budget meeting,” said Ponte. “We’re going to have it in the atrium and allowing city councilors to sit 6 feet apart from each other, and it will be closed to the public.”
Ponte said he’s working with FRGTV to broadcast the meeting and with the administration to ensure the meeting area is sanitized.
“We are making sure we are preserving our obligations with social distance,” Ponte said.
At the meeting, councilors will determine how to proceed with the 2021 budget. A joint meeting with the school department will be scheduled before the council votes, Ponte said.
Email Jo C. Goode at jgoode@heraldnews.com.