Vandergrift is coping with the loss of borough income due to the covid-19 pandemic.
Income from taxes, parking meters and several other revenues are less than what they were at this time last year, calculations from Borough Secretary Steve DelleDonne show. Much of the loss is due to “the covid problem,” officials said.
The first eight months of 2020 generated $56,000 less in tax revenue than the same period last year, DelleDonne’s calculations show. DelleDonne included tax revenue from property, delinquent property, realty transfer, wages and local services.
Of those different tax revenues, only income from realty transfer taxes was greater than it was in 2019.
The borough also has collected less in fines this year. Combining magistrate and parking fines, the borough collected more than $9,000 by Aug. 31, 2019. As of the same date this year, the borough has collected only a little over $5,000.
Royalties and meter income also have decreased by more than $5,500 and $4,700, respectively.
Councilman Casimer Maszgay, chair of the borough’s budget and finance committee, said the covid-19 pandemic and resulting shutdown of area businesses are to blame.
“The covid thing cut a lot of things down, and that’s the main reason why we’re not getting what we need,” Maszgay said. “Some people are going to have to tighten their belts and hope that this doesn’t last further than this year.”
DelleDonne said he hasn’t yet evaluated the borough’s expenditures for the rest of the year, but he is hopeful the revenue shortage won’t result in a budget shortfall.
At council’s meeting Tuesday, he asked council members to avoid any unnecessary spending from now until the end of the year, and be wary while planning their expenses for 2021.
Municipalities across the United States are struggling with budget issues because of the pandemic, as loss of employment and business closures decimate local tax revenue. The city of Pittsburgh is anticipating a budget shortfall of $100 million as officials work on a preliminary spending plan.
