Pullman expresses caution with 2021 budget

Pullman’s City Administrator said Tuesday that city departments have prepared their budgets this year under the assumption that 2021 will look a lot like 2020, when the COVID-19 pandemic forced significant budget cuts.

They are also preparing under the assumption that revenue-generating Washington State University football games will only allow fans at half capacity.

Mike Urban spoke about these topics and other ways the COVID-19 pandemic has affected the city budget during a League of Women Voters of Pullman meeting.

Pullman has weathered a year of uncertainty amid the COVID-19 pandemic by cutting expenses and receiving assistance from the CARES Act. Urban said city departments have been asked to curtail their expenses much like they did last year when the COVID-19 shutdown began.

The city’s 2021 general fund budget anticipates a total of $24.6 million in expenses.

Through expense reductions and with the help of $1.6 million in CARES Act money from the federal government, 2020’s general fund revenue came in slightly higher than anticipated at just less than $24 million.

Total sales tax revenue was also higher than anticipated at $5.4 million, largely because of sales tax dollars from construction activity. The retail sales tax was down 6 percent during a year when Pullman lost out on WSU events and six home football games.

Months away from the start of another college football season, Urban said the city is preparing for Martin Stadium to be at half capacity in 2021 and three-quarters capacity in 2022. Urban said the city is optimistic Martin Stadium will allow full capacity by 2022, but it is choosing to remain cautious.

Urban also told the League of Women Voters on Tuesday that he expects stimulus money from the federal government’s American Rescue Plan to be available in the next couple weeks, as well as more information about how to spend it.

“Again, it’s still very vague,” he said. “We can use the dollars to respond to COVID. That’s great as long as the state auditor agrees that our response to COVID is within the terms of the money that was given.”

He noted that while Pullman has received financial assistance from the federal government, the state has not offered any help.

“There is a rainy day fund with the state and we haven’t heard a thing if that’s going to be distributed or how that’s going to come help our local communities,” Urban said. “So we sit and we wait.”

Urban also addressed the city’s obligation to refund $600,000 in sales tax money to Washington State University. Urban assured that he is finding ways to close that gap without having to disrupt city services. For example, he said money can be saved by not filling open positions or by cutting back on travel expenses.

Kuipers can be reached at akuipers@dnews.com.