Amid the COVID-19 pandemic, there are many unknown factors, including economic impacts. Perry Mayor Randall Walker and Assistant City Manager Robert Smith discussed with the Houston Home Journal regarding the local economy, from the perspective of the city, under the virus situation.
When posed the question of challenges that involve aspects such as the municipal budget and the maintaining of the city’s services and work force, Walker explained that he didn’t want to say that the city was not having difficulty at all, but “It’s limited, because most of the city’s tax base is built on property tax.” Walker further stated that the one area that has suffered decline is the hotel/motel tax, which Walker said was expected.
“That funds a number of activities in the city, but a number of those activities have also been canceled because of COVID-19. So there is some offset there, but we have not seen a dramatic impact in the city,” Walker expressed, and added that he is waiting to know, if the federal government does not continue with the next proposed stimulus, what impact that will have on the spending in local economies.
Smith added that as far as operations are concerned, the city is doing whatever they can to ensure that city employees are safe while continuing to provide city services.
“We assess our employees every morning, check for the symptoms, make sure they weren’t around people that were ill; that type of thing. We adhere to all CDC guidelines in regard to proper cleaning and sanitation of our facilities and social distancing. We wear masks in our meetings… So, we think we’re doing everything we can to keep our folks safe and still ensure they are able to provide those services, because that’s what it’s all about,” Smith said.
On the subject of the impact on things like local infrastructure, capital expenditure projects, job creation and economic activity, Walker shared that during the city’s recent budget process for the fiscal year 2021, the city eliminated all of the capital expenditures for the fiscal year.
“We do not know what long-term impact this pandemic is going to have on the city of Perry, and we thought that a conservative budget would be the best approach—that we could go into 2021 with all the unknowns that are in place,” Walker said, with Smith ensuring that there was a hard look taken at the budget, and it was made sure that all unnecessary expenditures were eliminated.
Walker explained that the majority of large capital projects are SPLOST funded, and there has not been a downturn in those funds seen at this point in time, expressing uncertainty as to whether the dollars spent during the second quarter were of a stimulus nature. Walker said that they would have to wait to see what the long-term impact on sales tax would be.
In regard to the current CARES package that is being negotiated, Walker shared that he would like to see more flexibility in the use of the allocated dollars that would be coming to Perry. Walker said that the funds would be allocated to pay for additional costs that were incurred by the city with things like hazard pay—given to city departments such as the police, fire fighters, and public works employees during the high risk period, for the periods of time that they worked—cleaning costs, personal protective equipment for employees and other costs that come from doing things to protect citizens and employees.
Walker explained that, as he read the CARES Act, the act applies to those things that are being incurred that were not budgeted for in the 2020 budget.
“It’s actual cost that we incurred that’s being driven by the effect of COVID-19, and things that we’re having to spend to protect our citizens and our employees,” Walker explained.
Smith further offered that the city is also incurring overtime costs for city employees, due to regulations that the city has to follow regarding the virus. Smith gave the example of the restrooms of public facilities, which Smith said must be cleaned three times a day, including Saturdays and Sundays, for those facilities that are open during those days.
“Making sure that we can cover those operations … it’s been a bit of a cost for us as well,” Smith stated.
HHJ News
