Geneva to offer financial relief for residents, businesses impacted by COVID-19

Recognizing the toll the coronavirus has taken on the local economy, Geneva officials are implementing two initiatives aimed at providing some financial relief to businesses and residents.

The first waives all liquor and business licensing renewal fees from May 1 through April 30, 2021. The measure does not apply to new licenses, but rather is intended to support existing license holders directly impacted by the stay-at-home order, city Administrator Stephanie Dawkins said.

Businesses that have already paid their renewal fees for this fiscal year are expected to receive a full refund.

"Some might see it as a hit to the community," Mayor Kevin Burns said. "I think all of us agree that this is an investment in those who have a license."

The second ordinance attempts to help a broader range of community members by suspending the city's 5% water utility tax for all customers - residential, commercial and industrial property owners. The tax break will be in effect from July 15 to Dec. 14.

The relief efforts are expected to result in roughly $350,000 of unrealized revenue for Geneva, officials said. Both measures were unanimously approved Monday by aldermen during their first city council meeting in nearly two months.

The economic insecurity caused by the pandemic has impacted the community in a variety of ways, from the vitality of local businesses to access to housing, medical care, food and other resources, city leaders said in a memo. As a non-home rule community, the city is limited in the type of assistance it can offer, Finance Manager Rita Kruse said.

The city is facing financial uncertainties of its own, with leaders projecting a roughly $3 million general fund shortfall in fiscal 2021. Though information is limited so far, Kruse presented aldermen with a preliminary outlook on how COVID-19 could impact primary revenue sources.

About one-third of the anticipated budget gap will be covered by cuts or deferrals in capital expenses, as well as some operating reductions, such as delays in filling vacant positions, city spokesman Kevin Stahr said. The remainder will be covered by city reserves.

Geneva officials have identified $5.7 million in deferred capital projects and equipment across all funds, he said, including the $1.2 million purchase of a replacement fire engine.

City officials do not plan to implement mandatory employee furloughs, Dawkins said, though department leaders are being encouraged to practice "mindful spending."

"Expenditures should only be made when absolutely necessary," Stahr said. "We will continue to monitor and revise financial forecasts as the economic landscape continues to evolve."