TROY, Ohio (WDTN) – The impact of the COVID-19 outbreak on the economy is hitting local cities and municipalities hard.
The City of Troy is facing an estimated $3.1 million shortfall in its 2020 budget because of revenue shortages caused by the outbreak, according to Director of Public Service and Safety Patrick Titterington. The amount is roughly 15 percent of the city’s total budget.
“There are three primary areas that affected our revenues,” Titterington told WDTN.com on Thursday. “One was our income tax, reimbursements we get from the state through the local government fund and money we get from the state on gas tax revenues.”
Titterington said the city estimated a 12.25-percent reduction in revenue income taxes. He said Ohio Auditor Keith Faber’s office said the city should expect reductions of 40 percent from the state in local government reimbursements and another 45 percent less in state gas tax payments.
The city will cut $2.2 million from departmental spending and use $830,000 of its reserves. Right now there are no plans for layoffs.
“We’re blessed to have a pretty healthy reserve in our general funds,” Titterington said. “We identified as much as we could without cutting essential services like safety, refuse, streets and others. Where we had training, travel or professional development that wasn’t required to keep credentialing or certifications, we cut all of that.”
Troy Main Street, the Troy Area Chamber of Commerce and the Troy Development Council have given around $100,000 in grants to local businesses to pay for rent and utilities. He said whatever impact the re-opening the economy will have is an unknown at this point.
“A lot depends on how quickly (Ohio Gov. Mike DeWine) rolls back his directives,” Titterington said. “We do know the economic impact has been great here in Troy but probably worse in other areas.”
DeWine announced on Thursday the state’s stay-at-home order would be extended past its Friday, May 1 deadline. Healthcare systems will be allowed to re-open procedures with the exception of those with overnight stays on Friday while construction, manufacturing, office and distribution companies will be allowed to open on Monday with restrictions. Retail will open May 12 while DeWine has formed groups to determine when restaurants, barbershops, salons, bars and other service businesses will re-open.