Republic City Council adopts plan of action in response to COVID-19 economy

In an effort to be proactive against a possible revenue shortfall in coming months—thanks to pandemic-hindered sales tax returns—the Republic City Council is preparing for what may lie ahead. At the April 7 Republic City Council meeting, which was viewed online only, the council voted in favor of a resolution outlining the city’s COVID-19 Sustainability and Recovery Plan.     
The resolution calls for money to be moved from existing accounts, including police and fire, to a “Financial Sustainability Account.” The plan of action also call for some inaction, including the halt of all hiring.
Lastly, the direction ends with a recovery phase, which will attempt to return to a normal operation. The following is an outline of the plan accepted by council:

Sustainability Phase
1. Create a special “Financial Sustainability Account” to be utilized in the event revenues decline. The account will transfer over the balances from the following accounts though a Budget Amendment:
a. Police Department Equipment & Vehicles $34,216
b. Fire Equipment and Vehicles Fund - $76,749
c. EMA Equipment and Vehicles - $6,205.00
d. Capital Replacement - $318,687.40
e. Operating Reserve - $219,348.00
f. Building Safety Reserve - $65,000

2. Suspend all (except for seasonal) hiring through third quarter of Fiscal Year 2020; possibly remainder of the year, and re-evaluating sales tax receipts upon receiving report from Missouri Department of Revenue.
3. Phase 1 - Reduction in operating costs in General Fund related expenses by a minimum of $600,000.
4. Phase 2 - Utilize 2019 General Fund Unrestricted Cash minus $50K for US 60 Corridor Study - $378,939. Utilize the Capital Replacement portion of the Financial Sustainable Account in the amount of $318,687.40.
5. Phase 3 - Utilize the following cash amounts from the Financial Sustainability Account:
- Police Department Equipment & Vehicles $34,216
- Fire Equipment and Vehicles Fund - $76,749
- EMA Equipment and Vehicles - $6,205.00

Recovery Phase
1. Phase 1 - Utilize existing positions to backfill departments in need of additional assistance as workflow and volumes begin to increase.
2. Phase 2 - When sales tax receipts are equal to or greater than Fiscal Year 2019 tax receipts, then the following expenses will be considered:
- Re-establish step and merit increase.
- Rehire certain vacant positions starting with the Financial Officer.
3. Phase 3 - Remove capital spending freezes.
4. Phase 4 - Determine cash position for adding staff originally approved in Fiscal Year 2020.
5. Phase 5 - Prepare Fiscal Year 2021 budget and reconsider all expenditures as a result of the financial impact
of COVID-19.