YOUNGSTOWN — While the city is getting $88,629,500 from the latest federal COVID-19 relief bill, its finance director said he has concerns about how it can be spent.

Finance Director Kyle Miasek told city council Tuesday during a meeting on the city’s budget that the administration is working on a plan it will unveil shortly regarding recommendations on spending some of the money.

In response to a question from Councilman Julius Oliver, D-1st Ward, about reimbursing the general fund with the federal dollars, Miasek said only a portion of the money can be used for that.

“There will be opportunities for that,” Miasek said. “I don’t believe the bulk of what we’re going to receive can be used in that manner. We’ll bring to you soon” details about where some of the money should be spent.

The $1.9 trillion federal stimulus includes $350 billion for state and local governments.

That money can go toward revenue loss, preventing cuts to government services and cover premium pay of up to $13 per hour above regular wages for essential employees as well as infrastructure projects such as water, sewer and broadband.

Miasek said he is hopeful that the federal government will allow local governments to use the money for other purposes as it did with prior COVID-19 relief packages.

The city received $5.3 million last year in federal COVID-19 relief funds with much of it used to subsidize the general fund by paying salaries for essential workers that would have come from income tax revenue. The city saw a $2.35 million decline in income tax collected last year than what was budgeted.

“We’re going to earmark funds to be used how it’s been outlined, and if we can use some of those funds to subsidize some of our expenditures, we’ll figure that out,” Miasek said.

The administration in early April will start discussing with council how some of the $88,629,500 can be used, Miasek said.

Government entities have until Dec. 31, 2024, to spend the money. It will come in two separate payments.

CITY BUDGET

Council members and Miasek met for about an hour Tuesday to discuss the city’s finances, particularly the 2021 budget, which must be approved by March 31.

Council will meet 4 p.m. Monday to adopt the proposed $176 million budget.

Council approved a $182 million budget last year. That approval came March 16 at a special meeting that was the last time council met in person because of the COVID-19 pandemic. Since then, council has met virtually.

There are no capital improvement projects in the 2021 budget except the continuing payments on a fire truck and two additional snow-plow trucks from the past few years, Miasek said.

Because of declining revenue, the surpluses in each fund will be lower at the end of this year than at the start, Miasek said.

The general fund started the year with a $6,907,322 surplus. Between expenses and lost revenue from the 2.75 percent income tax, it’s expected to lose $2.3 million this year and end 2021 with a $4,607,322 surplus.

The funds that it subsidizes — police, fire, street, park, emergency 911 center, health and road improvements — are expected to lose $2,212,750 combined and each is projected to be left with very small surpluses by the end of the year.

Also, the water fund started the year with a $532,094 surplus and is projected to end with only $119,594.

That fund would have a deficit if council had not raised the water rate by $10 per month, starting last July, and reduced the environmental sanitation fund by the same amount for city residents.

The $10 change reversed what city council did in 2015 to lower the water rate and increase the environmental sanitation fee. That generates $2.5 million annually.

Before the $10 change in 2015, the water fund had a $14,428,000 surplus.

The environmental sanitation budget started this year with a $2,639,656 surplus and is expected to finish the year with a $2,530,156.

The wastewater fund started the year with a $2,639,656 surplus and is projected to end 2021 with a $2,530,156 surplus.

dskolnick@tribtoday.com