The Warrenton city administration is preparing for the possibility that tax revenue will drop in the near future and examining potential budget reductions, City Administrator Terri Thorn said at a …
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The Warrenton city administration is preparing for the possibility that tax revenue will drop in the near future and examining potential budget reductions, City Administrator Terri Thorn said at a recent public meeting.
Thorn told the Warrenton Board of Aldermen on Jan. 19 that the ongoing COVID pandemic may finally start to impact city revenue in the near future.
“This pandemic has extended on, and on, and on. ... Originally, there was a rush and everyone was out making purchases of items they were in fear might not be readily available,” Thorn explained. That buoyed the city’s sales tax revenue in 2020, and actually put the city above budget for revenue by about $250,000, Thorn said.
But now those sales, and the sales tax, have dropped back to normal, exposing the other areas where the city’s revenue has fallen significantly.
“Things like the revenue for the pool, as an example. People are not going out and doing the things that they did previously, and spending those types of dollars that they were before,” Thorn said. The city has also lost significant revenue from not being able to hold municipal court and collect fines for things like traffic tickets or building code violations.
Thorn said her staff will do a deep dive on upcoming public works projects and operating costs to look for funding that can be trimmed, and will likely propose cutting the operating hours at the Warrenton Aquatic Center.
Despite the creative efforts of Aquatics Director Lisa Kramer, Thorn said customer activity has not increased at the pool. Thorn said it’s possible customers won’t return during the pandemic.
“It is unknown how long the pandemic will continue. I think everyone’s hopeful that soon it will be over with the vaccines, but I think it’s such an unknown that we’d be wise to take a look at any actions we might need to take to ensure ... that we are in a good position financially,” Thorn said.
• The final property easements for sidewalk construction on North Highway 47 have been acquired by the city. The city did not have to proceed to eminent domain lawsuits on any of them, said Director of Operations Brandie Walters. Construction is expected to begin in late spring and continue into the fall.
• Aldermen approved a site plan for One Stop Smoke Shop on Highway 47 south of I-70, with a condition that the shop advertise no drug paraphernalia which might be sold there. Aldermen discussed whether future stores of that nature should be allowed in such a visible, high traffic area of the city.
“You pull into Warrenton and the first thing you see is this smoke shop, and then you next see a cannabis place. ... What does that say about the town of Warrenton?” Alderman Gary Auch asked.
• The city made an additional $2 million payment on its loan for construction of the west I-70 interchange. The city currently owes $9.6 million for the $15 million project. Making extra payments has shortened the payoff date of the loan by five years, Thorn said, from 2037 to 2032.
• Engineering has begun to increase capacity at the city sewer plant, a large project that is expected to take until 2027.
