Members of the Abilene City Council have crafted a budget for the 2020-21 fiscal year they say could likely weather the storm caused by the COVID-19 pandemic.
By using a $3.4 million “Minor Improvement Fund,” the city could avoid having to tap into the city’s General Fund reserve. The budget ratification following a public hearing is expected to take place on Aug. 13.
A report on the Abilene Chamber of Commerce website said City Manager Robert Hanna told Council members that even if the economy tanks, the city has a little flexibility built in thanks to the MIF fund as a backup. The General Fund reserve was described as “substantial.”
However, Hanna warned that another long shutdown of area businesses because of the coronavirus could cause the city to have to seriously deplete the MIF.
Bargaining units representing city police and firefighters have been asked to delay a pay raise from October of this year to April of next year, and a projected 2% cost of living adjustment (COLA) for city employees could also be put on hold, the report said.
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