HUBBARD Budget plan has no tax increase

Hubbard's auditor doesn't see the need for a tax increase next year.
By TIM YOVICH
VINDICATOR TRUMBULL STAFF
HUBBARD -- The proposed 2002 city budget is a dull beige -- unexciting at best -- but its beauty is in the eye of the beholder.
To auditor Michael Villano, the $12.5 million budget is pleasing to the eye since it doesn't require a tax increase or a cut in services.
"I don't think that [a tax increase] will be an issue in the coming year," Villano said. He added, however, that revenue is just meeting expenses.
In formulating a new budget, Villano conservatively estimated in June the revenue expected in 2002.
At the same time, department heads submitted what he characterizes as "very reasonable" budget requests.
In some cases, overall department budgets were reduced from what each got this year to help offset employee pay raises.
The 2002 budget Villano is proposing is $220,000 less than for 2001.
Revenue has been decreasing, while money has been spent in the past three years to update equipment and construct a water department building.
"We're now beyond the point of spending big money in acquisition areas," the auditor said.
Some council members have indicated they aren't interested in getting the city into debt.
They point to neighboring Girard, which has fallen under a state-imposed fiscal emergency because it took on too much long-term debt. That city expects to end the year $1 million in the red.
Million-dollar grant: Villano pointed to a $1.1 million federal grant Hubbard has to pay for either construction of a new police headquarters or remodeling the aged one.
Lawmakers have indicated they won't spend more than the $1.1 million and less if possible. That financial decision will determine what is done with the police building.
Villano said there still will be capital improvements next year.
A waterline along North Main Street, from downtown to the city limits, will be replaced.
That project will be instrumental in providing water to the proposed Flying J Travel Plaza near Interstate 80 in Hubbard Township.
To help pay for the line, the city has a $201,989 state Issue 2 grant and a $600,000 Issue 2 no-interest loan. The city will pitch in just $99,123.
Other projects: Usually, Villano said, the city spends $70,000 to $80,000 a year for street resurfacing.
For next year, $95,000 is allocated.
An additional $140,000 will be spent to extend electric lines, allowing service to Flying J, Deer Creek Golf Course and Bell-Wick Bowl.
Villano said the long-term sale of electricity will pay the cost of the extension.
Because of the slowdown in the economy, Villano said, the city will have to continue looking for new ways to guard against falling into debt.