LEXINGTON — The Village of Lexington was in good financial shape at the end of the first quarter of 2020, Mayor Brian White told village council members Monday evening.
“We are about where we always are (this time of year),” White said during a “virtual” online meeting conducted via Zoom conference technology. “We are in good financial shape.”
Many municipalities around Ohio are struggling financially due to the expected loss of income taxes related to statewide shutdowns due to the COVID-19 pandemic.
The City of Mansfield, for example, is expecting a 20 percent loss in revenue during 2020, according to Finance Director Linn Steward.Â
About 80 percent of the village’s revenue comes from income taxes.
“Our cash position is in good shape, as is our rainy day fund,” said White, in his first term as mayor after a long tenure on council. “Our revenue streams are tracking correctly. Our large businesses are working, which is a good thing.”
White said the village recently had a certificate of deposit come due at the end of March, worth about $380,000.
Due to interest rates being low, White said the village decided to move the money into its general fund. He said two additional CDs are coming due soon and those funds may also be moved into the general fund.
“That’s probably what we will want to do until get onto the backside of this (pandemic),” White said.
The mayor said some village officials remember the recession of 2008 and that Lexington has done a good job building up its cash reserves over the past decade.
White told council that work is underway in Washington, D.C., on another coronavirus relief package that could make funds available to smaller cities. The $2.2 trillion package approved earlier earmarked money specifically for cities larger than 500,000 population.
He said the village is tracking expenses related to the pandemic in the event reimbursement becomes available.
“If and when that happens, we will be in queue,” White said.
Also on Monday:
— Police Chief Brett Pauley reported a “slight uptick” in crime since council’s meeting two weeks ago. “People are getting a little antsy,” the chief said of residents under the stay-at-home order from Gov. Mike DeWine. The chief also said he ordered the new cruiser, approved by council at its most recent meeting, though a delivery date is uncertain.
— Council approved placing a sign at the village square on June 4 in honor of the 106th birthday of Ed Harpster. Council members believe he is the oldest person in the history of the village.
— Administrative Director Andy Smallstey reported that road paving and resurfacing projects will begin on schedule in early May.
