The city of Augusta closed the financial books on the 2020 budget showing a near $4 million surplus for the General Budget, making it the second year in a row that the city’s bottom line was filled in with black ink instead of red.
At a time when many cities are facing severe financial shortfalls and even looming bankruptcies caused by the pandemic, it appears Augusta has so far weathered the COVID-19 storm.
According to Finance Director Donna Williams in Augusta, the surplus could not have happened without the Coronavirus Aid, Relief and Economic Security Act (CARES) that came directly from the federal government.
In her official report, Williams outlined that the city saw only 70 “old normal” operating days when the pandemic turned everything upside down, with businesses being forced to shut down and the city government forced to take drastic new health measures to stay functioning.
“Businesses were closed, public facilities closed, (city) employees worked in staggered shifts or remotely, and the world started to feel the impact of COVID-19,” her report stated.
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As the local economy screeched to a halt, the postponement of the Masters Tournament in 2020 meant that the annual financial boost the city was accustomed to wouldn’t happen in April like normal. When the event was held in November, the throngs of fans were not present and from a spectators’ point of view, the 2021 Masters crowds are about the size one might have seen in 1975 before the tournament was a bona fide worldwide event.
Also, various income streams for the city from utility payments, licenses, and court-related transactions all slowed to a trickle and the halt to all recreation programs cut off that income as well.
On top of that, all city government buildings had to be outfitted with plexiglass and other protective equipment to keep the public and city workers adhering to CDC safety guidelines.
“We were facing an increased expenditure with lowered revenues. Not a good place to be in,” she said. “Were it not for the CARES Act funding, we would have faced at least a $4 million shortfall.”
Williams equates the CARES Act with “bringing in the cavalry.”
The Act, passed by Congress in March of 2020, directed $10 million dollars into Augusta’s coffers, making it possible to not only balance the books, but to finish paying off debts and offer relief to the businesses hit hardest by the pandemic.
Commissioners also agreed to allow the finance department to offer refunds to bars and restaurants with on-premise alcohol licenses that were mostly shut down during 2020. For those bar owners, that’s around $4000 wiped off of their books.
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The money received through the CARES Act was just Phase I of the aid package and it accounted for only 30% of the $1.23 billion that was allocated by Congress to the state of Georgia.
However, the city found out that the CARES Act funding was only good while it lasted. The city was notified in October that Phase II and Phase III disbursements would be kept at the state level and not distributed to the cities directly.
“I’m still kinda miffed about that,” Williams said. “But what can you do?”
The $4 million dollar surplus will stay in the General Fund for the city to get a little ahead on maintaining a balanced budget for the current year.
Governor Brian Kemp this week relaxed the social distancing and crowd limitation requirements across the state and that makes Williams cautiously optimistic.
Meanwhile, the Augusta Commission seems to be favoring a return to social and economic normal as they have greenlit a James Brown birthday block party to take place in May and are vowing to bring back parades and other public events despite any anticipated pushback from Sheriff Richard Roundtree.
“Hopefully things are getting better, but the added expenditures caused by the pandemic are not going away anytime soon,” Williams said.
Scott Hudson is the Managing Editor of The Augusta Press. Reach him at scott@theaugustapress.com.
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