Mayor Addresses Anticipated Revenue Shortfall Due To Crisis


During the Vermilion City Council Meeting on Monday, April 13, 2020, Mayor Forthofer reported that, like all governments, the City of Vermilion is expecting a revenue shortfall because of the crisis impacted economy.

“Finance Director Hendricks cannot estimate the loss at this time,” stated the mayor, “but suggests it will be in the hundreds of thousands of revenue dollars. As a proactive measure, I have met with the Administrate Departments to review which planned projects will go forward and which are put on hold.”

Projects going forward: 

• Vermilion Road reconstruction phase II 

• Highbridge Road reconstruction 

• Haber Road Bridge replacement 

• Sanford Street sidewalk project 

•  Vermilion Firehouse I construction 

• City wide water meter replacement

“Some of these projects are partially or wholly funded by grants which we would lose if the project does not proceed,” said the mayor. “Others are partially or wholly funded by bonds which are already in place.”

Projects the Administration has put on hold:

• The Fulper Parking Lot project. 

• Decommissioned water tower maintenance 

• Road crack sealing

“These projects come directly out of City funds,” stated Mayor Forthofer. “We can always restart these projects once the financial picture comes into focus and the City has the funds. As Mayor, I believe it is important to take quick proactive measures to minimize the stress on our city budget created by the current crisis. We will continue to look for other cost reduction opportunities. Once our new level of income can be predicted, we will examine restarting those projects that Council has already funded. 

After consultation with the City Engineer, the mayor has suspended two projects due to safety concerns during the current crisis. Replacement of the Sanford Street waterline and the Haber Road Bridge and waterline will be temporarily suspended.

“While our residents are ordered to shelter in place, children are ordered to stay home and everyone is supposed to wash their hands frequently, I do not want to deprive them of their city water source,” said the mayor. “When the crisis is over, and our residents can freely move about, we will resume these projects.”