A Message from Mayor Stimpson - August 26
Aug 26th, 2020
Good evening,
It is 8:30 p.m. on Wednesday August 26, and I am writing to give you an update from the City of Mobile.
Today, the Mobile County Health Department reports 11,958 COVID-19 positive cases an increase of 188 cases. The Health Department is reviewing the data to find the cause of this increase. To review the daily report click here.
We all know a friend or family member who has at some point overborrowed or overspent on non-essential items. Not only does that mean there is no money for savings or perhaps home improvements, but there is no margin for error if that person experiences an emergency or a job loss. Over the last seven years, Mobile has deliberately set out to avoid finding itself in that position. We have paid off debt and paid down unfunded liabilities. We have put aside a rainy-day reserve fund of at least two months of expenses.
The pandemic has become our rainy day. On August 13, the National League of Cities released its annual City Fiscal Conditions report which shows that nearly 90% of cities will be less able in fiscal 2021 than in 2020 to meet their fiscal needs. On average, cities anticipate a 13% decline in revenues.
Because of our strong financial position, we do not have to cut services or lay off employees as other Alabama cities have had to do. In fact, for 2021, we will be able to increase public safety resources and to allocate more funding to repair and improve our infrastructure and parks than ever before.
Despite the challenges related to the economy due to the COVID-19 pandemic, the FY2021 Proposed Budget includes a 2.5 percent raise for all employees with no cuts to services and level funding for performance contracts. In the words of our Executive Director of Finance Paul Wesch, "Mobile has weathered the storm a little bit better than most."
We have exciting developments on the horizon with the approach of a new budget season, including and not limited to providing funding to: build the Africatown Heritage House; make major renovations to four of our parks; and continue street resurfacing and sidewalk improvements.
This is not accomplished by accident. We have been able to weather the storm of COVID-19 as a result of intentional stewardship of city funds over years of examination and strategic planning.
As unfortunate as COVID-19 has been for our citizens, it is times like these that expose the benefits of preparation and the failures of a lack of preparation. We must stand ready to confront and recover from future challenges; whether hurricanes, economic downturns, or as yet unknown tests of our resolve.
In closing, Dave Ramsey once said "A budget is telling your money where to go instead of wondering where it went." We will continue the hardwork of stewarding taxpayer dollars so that we are able to weather the storm of 2020 on sound financial footing!