Lorain City Council delves into 2024 budget

LORAIN — Lorain City Council's first budget hearings for 2024 saw a deeper dive into the city's revenue. The city predicts about $38.3 million in revenue this year for its general fund, according to a budget submitted to Council by Auditor Karen Shawver. That revenue comes in part from income taxes — about $25 million, including collection on delinquent accounts — and other fees for permits, inspections and petroleum sold to Lorain Schools. Lorain has a 2.5 percent income tax that funds street repairs, police operations and general operating costs; of that, 0.25 percent is up for renewal this spring. The 0.25 percent generates about $3 million each year, and was first passed to make up for the closure of Ford's Lorain Assembly Plant in the mid-2000s. It has been renewed every five years since then. A specific fire levy on residents' property taxes generates about $1.5 million per year, used specifically for the fire department's operations, Shawver said. The city also has an approximately $8 million carryover from 2023 for its general fund. That $8 million cushion was in part due to revenue replacement from American Rescue Plan Act funds, CARES Act funds and workers' compensation refunds totaling about $13 million in 2021 and 2022, Shawver said. "Had we not received all those dollars because of the pandemic, we would probably be facing an entirely different situation," she said, adding that Council may not have been able to pass the recent raises afforded to police, fire and dispatchers without the one-time windfall. Mayor Jack Bradley said the city has about $1.3 to $1.8 million that could be used for revenue replacement from its remaining ARPA funds this year. It anticipates receiving some interest on its remaining ARPA funds, which will need to be spent before 2026. Shawver said the city is anticipating to spend about $5 million against its cash balance this year. Finance chair Joseph Koziura, D-At Large, urged his fellow council members to carefully review the city's expenses before a March 11 committee meeting. For the general fund alone, the city anticipates its expenses at about $43.8 million. Lorain has until the end of March to pass a permanent 2024 budget. Shawver reminded Council that even once the permanent appropriations are passed, the budget is still a "living, breathing document." Council President Joel Arredondo echoed her sentiment. "Nothing's set in stone, things change," he said, noting there are often unanticipated items on both the revenue and expense side that Council must work through during the year. "We're all here to work together, not only for the citizens of Lorain but also for ourselves," he said. "If we can do that, the city is going to be a lot better off than if we have agendas on the side and people making comments." Contact Carissa Woytach at (440) 329-7245 or cwoytach@chroniclet.com.