Lacey adjusts budget after slower economy tied to COVID-19 blows $6 million hole in it
Facing a $6.32 million shortfall in its general fund budget for 2020, Lacey City Manager Scott Spence outlined to City Council on Thursday the steps the city is taking to fill that hole.
Although the adjustments and savings will prevent the need for full-time city staff to be furloughed or laid off, there were still some casualties in the details.
And Spence cautioned the council that if the COVID-19 pandemic stretches into summer, the general fund budget may have to be adjusted again.
Spence teed up his presentation by pointing out what the pandemic has done to the national economy, including putting an estimated 26 million people out of work.
Lacey has not been immune to those changes, seeing steep drops in sales tax and business and occupation tax revenue, plus other sources of revenue as well, all of which has resulted in an 11 percent drop in its general fund budget, or $6.32 million. The city’s general fund budget for 2020 was $52 million.
To address the shortfall, the city has frozen hiring, suspended capital projects, furloughed part-time staff — primarily in the parks department — tapped operating reserves and suspended equipment purchases.
Among the budget cuts: $150,000 for new playground equipment at Bush Park, $60,000 for a neighborhood grant program, $50,000 for Midtown amenities, $50,000 for a northeast Lacey market study and $10,000 for Lacey’s sister city program.
The Woodland Square Loop area, near Huntamer Park, is now known as Midtown. The spending cuts mean that area won’t immediately be adorned with banners and logos identifying it as such.
Spence also told the council the city’s July 3 fireworks show at Rainier Vista Park, an annual event that attracts thousands to watch fireworks before the July 4 holiday, is probably not feasible, he said.
“We are making plans to cancel the event,” he said, adding that decision is being driven by the uncertainty surrounding whether social distancing will still be necessary.
He said as many as 7,000 people have gathered to watch the fireworks in the past.
This story was originally published April 24, 2020 at 5:45 AM.
