Cedar Point's reopening softens budget blow

SANDUSKY — The situation compares to a two-hour-long wait before boarding Millennium Force. It's not great, by any means, but the situation could be way worse — like, say, a four-hour wait in 90-degree heat or the attraction breaking down, making it unrideable. The area's two largest governments can empathize: They both avoided a financial doomsday scenario thanks to Cedar Point announcing it will open later this summer. COVID-19-related guidelines have kept and will keep the amusement park closed until July 9. Though some feared the area's premier entertainment venue wouldn't open at all this year. Had that happened, it would've effectively paralyzed these government entities, hamstringing each from carrying out vital public services thousands of residents depend upon. Officials representing Erie County and Sandusky both prepared for a worst-case scenario but can pare back on those dire projections. Erie County Had Cedar Point not opened this year, Erie County stood to lose about $9 million from its $31 million everyday operating budget. The figure represents about 29 percent of county income levels. Now, with the amusement park opening next month, it stands to lose "only" about $5 million this year. Erie County benefits from Cedar Point through tax streams like lodging (people staying in hotels, motels or lodges), sales (people buying taxable goods at restaurants and stores) and disposable income spent elsewhere, which supports local jobs. Officials earmark these funds on services such as for courts, sheriff, jail and many more operations. To counteract the $4 million difference, county commissioners previously mandated workers in non-union positions, about 250 full- and part-time employees, must take furloughs. Commissioners stipulated impacted workers need to miss two weeks' worth of pay. They also implemented a hiring freeze and asked fellow elected officials to hold off on any purchases not deemed necessary. Just because the amusement park will reopen doesn't mean all is well with Erie County's finances. These cost-cutting measures will remain in place at least through the end of 2020 and possibly into next year. "With the opening of Cedar Point in July, we will not reach the worst-case scenario we planned for," county commissioner Matt Old said. "That being said, we are still in a pretty bad spot. We are expecting a $5 million hit to our general fund. These budget shortfalls are going to last for, at least, the next couple of years." Sandusky Had Cedar Point not opened this year, Sandusky stood to lose about $10.5 million from its $24.5 million everyday operating budget. The figure represents about 41 percent of city income levels. By a wide margin, Cedar Point represents Sandusky's top revenue source. Now, with the amusement park opening next month, it stands to lose "only" $4.8 million this year. Sandusky benefits from Cedar Point through admissions taxes, fees tacked onto all amusement park-related ticket sales. The city also collects taxes when people stay in city-based hotels. It also reaps financial advantages when people spend disposable income elsewhere, which supports local jobs. Officials earmark these funds on services such as for streets, police, fire and many more operations. To counteract the losses, city officials approved workforce reductions. All told, through layoffs and position terminations, the government employs 18 fewer people today than it did in March. When factoring in other recent cost-cutting measures, such as reducing administrative employees' salaries and freezing projects that lack a dedicated funding source, officials have saved about $3 million thus far. "We are fortunate that Cedar Point is opening in July," city ex officio mayor Dick Brady said. "We have dodged the worst-case scenario, however, a $5 million hit is more than just a bump in the road. No one can predict how quickly the tourists will return and our revenue is restored. We still have to be prepared for a very tough year."