Plymouth Clerk-Treasurer Warns City Officials about Spending

Plymouth Clerk-Treasurer Jeanine Xaver warned city officials and department heads to do what they can to limit spending in 2020 during Monday night’s Plymouth Board of Public Works and Safety meeting.

With non-escrow property tax payers given a two-month extension on paying taxes, the loss of property tax cap revenue, the same shortfall of funding from last year, and the effects of the fall-out of the COVID-19 pandemic, the city may have to dip into cash reserves when determining the 2021 budget. 

She read aloud from a letter from Baker Tilly who stressed that the late payment of property taxes will affect Tax Incremental Finance (TIF) revenues and the draws will be delayed two months which will effect 2020 spending.

Xaver requested a hiring freeze and capital spending freeze until at least after the first property tax draw and the completion of a five-year comprehensive capital plan by Baker Tilly.  She said a better outlook on how the COVID-19 pandemic will impact finances will be realized at that time and the freezes could be reevaluated. 

Xaver also stated that utility revenues could also be impacted due to the closure of businesses, industries and schools. 

City Attorney Sean Surrisi and Mayor Mark Senter spoke about the issue with Xaver prior to the meeting where the draft of a resolution was proposed, but Surrisi said during the meeting that they recommended speaking with department heads first to go over the issues as opposed to a resolution. 

Surrisi commented that an early look at budgets for 2021could occur with a committee of council members and department heads to review projected revenue to fit the budgets. 

The board members did not take action on a resolution, but discussions will be held with department heads this week to go over funding implications due to COVID-19.