Monroeville Council is faced with a $3.1 million shortfall in the municipality’s 2021 spending plan.

The upcoming year’s budget stands at $36.5 million, which represents a 1.2% increase from 2020.

Manager Tim Little said most communities across the country will experience losses in revenue because of the pandemic.

“The good news is that we can weather it, hopefully, because we have a decent fund balance,” Little said.

That’s why Little proposed during council’s Oct. 13 meeting to use $5.9 million from that account to balance the budget. He has suggested the extra $2.8 million to go toward purchasing capital items.

Under Little’s plan, property taxes will hold the line at the current millage rate of 4 mills.

The $3.1 million hole is coming from a loss in collected taxes, namely the business privilege and mercantile taxes. Combined, Monroeville is looking at a decrease in $2.8 million from that revenue stream.

Another loss in tax revenue is found in the earned income tax, amounting to around $250,000.

The capital items Little proposed for next year include a $663,000 purchase for body and vehicle cameras for police. The expense will also cover the purchase of new computers to be placed within police vehicles.

Around $200,000 will go toward purchasing four new police vehicles. Other expenses include $1 million for the municipality’s paving program, a project to rebuild a retaining wall on Old Ramsey Road and $185,000 for expenses within the Emergency Management Services department.

Another big item in the upcoming year is the municipality’s pension obligation, which has climbed to $972,000. Little said the reason for that is hiring additional employees for the MS4 program, which was established in 2018.

Little has said revenue loss is to be expected because of the coronavirus pandemic, but that the losses aren’t as large as he anticipated. This year, the revenue lost amounts to nearly $1 million.

But the effects of the pandemic will continue through 2022, Little said. He estimated losing approximately 9% of the municipality’s revenue that year, around $3 million.

Council will continue to discuss the 2021 budget during public meetings scheduled for Oct. 29 and Nov. 5 at the municipal building, 2700 Monroeville Blvd.

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