Savannah council reviews FY2020 budget and capital plan amid COVID-19 revenue uncertainty

Savannah Mayor Van R. Johnson II presided over a May 7, 2020 City Council work session held by Zoom where staff presented the city’s FY2020 operating budget and five-year capital plan and warned that COVID-19 had made revenue forecasts uncertain.

Director of Budget Management Melissa Carter and Director of Finance David Maxwell outlined the budget timeline, fund structure and fiscal policies and explained how members of the public can review the city’s budget documents online. Staff said only four months of data are available and it is too soon to make definitive financial projections; they flagged particular caution on hotel/motel tax receipts and said any formal budget adjustments may not appear before August.

The presentation and follow-up discussion centered on several contested fiscal assumptions. Mayor Pro-Tem Dr. Estella Edwards Shabazz questioned whether the projected 1.8% tax revenue increase is viable given pandemic-driven unemployment and asked whether current and delinquent tax collection rates might decline. Alderman Nick Palumbo warned that raising taxes could drive businesses away. Council members sought a regular revenue update: Dr. Shabazz specifically requested monthly reports on impacted revenues.

Alderwoman Alicia Miller Blakely and Alderman Palumbo pressed staff on whether the city would collect developer impact fees during the pandemic and asked for clarity about prior assessments and naming of those fees. Staff said impact fees and the treatment of reserves would be considered as part of fiscal planning, but no definitive action was taken at the session.

Compensation and spending choices drew sustained scrutiny. Mayor Johnson described a restructuring of the city’s compensation plan as a major improvement for FY2020. Alderwoman Kesha Gibson-Carter raised questions about the scope of a nine-million-dollar increase tied to a pay and compensation study and whether pay increases were being applied equitably across classifications, specifically asking for a survey of the top 10 paid positions in the police department by pay, education and tenure. Gibson-Carter also pressed on pay levels for sanitation workers and expressed concern about reductions to funding for nonprofits and social services.

Alderwoman Bernetta B. Lanier warned the city will likely face a budget shortfall in the fall and said the council will need to consider difficult staffing and spending decisions. Mayor Pro-Tem Dr. Shabazz urged the administration to prioritize contracting opportunities for disadvantaged business enterprises (DBEs) and minority- and female-owned firms and criticized issuing bonds concentrated on downtown projects rather than across districts.

On capital funding, staff reviewed the Capital Improvements Program and the City’s SPLOST projects for 2020–2024. Council members, including Alderwoman Miller Blakely and Alderwoman Lanier, asked detailed questions about SPLOST VI funding and the city’s lobbying efforts to secure external funding. Alderwoman Lanier asked whether a proposed $45 million bond tied to arena-related work included drainage improvements at the northern end of the Springfield Canal; staff discussion did not produce a final determination at the meeting.

City Attorney Bates Lovett was asked to outline options for unused SPLOST dollars and Alderman Palumbo questioned whether drawing from reserve funds had been contemplated; staff indicated those are considerations but provided no vote or formal action during the session.

No motions or votes were recorded during the work session. Mayor Johnson adjourned the meeting at 5:53 p.m. and confirmed the next work session and regular meeting for May 14, 2020. The clerk noted the audio recording and the city’s budget materials are posted to the city website.