Officials: City’s finances on track

Current projections say city will end 2020 with $500K surplus

The city of Lorain is in a solid financial position in weathering the impact of novel coronavirus.

City Auditor Karen Shawver said on June 8 in a finance committee meeting that current projections suggest the city will end 2020 with a $500,000 surplus assuming no further setbacks.

While other cities have been forced to take more aggressive action, Lorain’s revenues have been relatively stable.

“Fortunately for Lorain, we’ve been able to hold our own,” Shawver said.

For Lorain’s economy in general, Lorain has fared well, with some businesses seeing an uptick. Shawver believes the expanded unemployment benefits of $600 extra per week from the federal government through the CARES Act could be having an impact.

The city has been expressing some worries about the July 15 tax filing deadline, with concerns that some people may forget to file or believe they are not required to file.

As of now, the city is currently down 11.11 percent in revenue ($288,000) compared to 2019, most from the line item ‘income tax finals’ where they normally would have about $1.8 million.

With revenues expected to recede in July and August, further action could be needed at that time.

Treasurer Terri Soto said the city would be sending out email reminders instead of mailers this year and it is hoping to get the word out to residents about the need to file by July 15.

She stressed that the city needs to stop holding the hands of their taxpayers, referring to people who know they have tax estimates but are still waiting until the end of the year to file.

Finance Chair Mitchell Fallis made clear the city would not be granting abatements on late fees.

Lorain Mayor Jack Bradley reported the Ohio House of Representative had approved House Bill 310 which if passed, will bring an estimated $3.3 million in funding to the city of Lorain as part of a $350 billion package for local governments.

The funding would be for COVID-19 relief and must be used by the end of the year.

While Bradley said the funding cannot be used as direct relief to residents, he is hoping to develop some creative solutions in moving the city’s economy forward to provide some help to businesses and residents.

“If we’re creative and we use those funds appropriately we’ll be able to generate more funds for the city of Lorain,” the mayor said. “That’s a positive for Lorain.”

The city will analyze the regulations and look at ways to bring relief to Lorain residents.

“Hopefully, we can be creative and use the regulations that are set out by the Department of the Treasury so we could give some relief to people.”

While the city is expected to get through 2020 mostly unscathed, 2021 is expected to be tougher, requiring more adjustments and planning.

Shawver said the city will feel the full impact of the loss of U.S. Steel and a loss of net-profit taxes.