As we continue to navigate through uncertain times we will continue to deliver as much pertinent information as possible regarding the City of Macedonia.
The corona virus is becoming one of the most challenging incidents to our health and finances that we have ever seen. As a result of these challenges, the economic impacts can be devastating to families and businesses in our community. Those challenges are shared with the city budget and we must look for ways to minimize the impact to our operation by planning for recovery.
As you are aware, income tax revenue is our main source of income. We are currently projecting a loss of 3.5 million dollars and that number may increase depending on the length of the pandemic. This creates a shortfall that must be accounted for.
We will begin to formulate a budget reduction plan for the remainder of the year which will be presented to council this week. We are making up for the losses by:
1. Hiring freeze for all non–critical vacancies
2. Reduction of FT employee hours that are not safety
3. Overtime is only approved for urgent needs
4. Layoffs of part time employees that are not safety
5. Operating cost reductions
6. Postponement of capital projects
We will still execute our road program since our road program is dedicated dollars only to
those repairs. There are a handful of other projects that were budgeted for and executed prior to the pandemic that will be carried out as well.
By the fourth quarter of this year we will address the projected operating shortfalls through the 2021 budget development process. The tax filing deadline was extended to mid–July. At that point we will have a much clearer understanding of the COVID–19 impact as we analyze our income tax withholding, net profits and individual filing numbers.
Macedonia has always held a high level of service but now we will need to sacrifice in order to prepare for our losses. I ask for your patience and understanding as we work through the difficult times ahead.
Mayor Nick Molnar
The Crossroads of Northeast Ohio 9691 Valley View Road. Macedonia, Ohio 44056. www.macedonia.oh.us. 330 / 468–8320 • Fax: 330 / 468–8392
