GIRARD FINANCES Melfi: City is on the road to recovery

Increased revenue from the inheritance tax gives finances a needed boost.
By TIM YOVICH
VINDICATOR TRUMBULL STAFF
GIRARD -- The city is turning the corner in its effort to ease its financial woes, Mayor James J. Melfi says.
Melfi's assessment was made after Monday night's city council session at which auditor Sam Zirafi said the city's deficit for the end of this year has decreased from $1.9 million to $1.3 million.
Zirafi cautioned lawmakers, however, that 2003 will be as difficult as 2002 because of the lack of revenue.
Melfi and Zirafi's comments came as lawmakers approved a $3.5 million balanced budget for 2003.
"We're on our way to recovery," the mayor said.
Here's why
There are two primary reasons for the deficit reduction.
Revenue from the inheritance tax increased from a normal $160,000 to $500,000. Also, fees paid to the city by LAS Recycling Inc. from the money it charges customers to dump there increased from an estimated $80,000 to $130,000.
Melfi also called attention to $250,000 in spending cuts made during the year.
The city was forced into fiscal emergency August 2001 by the state auditor's office because it couldn't pay outstanding loans. It was brought about by the city spending more money than it was taking in.
Zirafi said the large increase in the inheritance tax is a historic high for the city, but it's a one-time phenomenon.
"You can't determine when rich people are going to die," the auditor said before the meeting.
Zirafi said the city will have to eventually increase revenue.
Code of conduct
In another matter, council postponed creating a code of conduct at youth sporting events on city-owned property and appointing a conduct committee to enforce it.
The code pertains to any spectator who acts inappropriately. It prohibits spectators from initiating a fight, threatening physical abuse, using obscenities or running onto the playing surface.
It also prohibits obscene gestures and racial, ethnic and sexual slurs.
Although up for passage, it was postponed after Mark Zuppo, recreation director, complained that although the code of conduct was his idea, he was never asked for his input.
Kathleen O'Connell Sauline, D-3rd, said that since the legislation has been held up for a long time anyway, Zuppo should be able to comment on the legislation.
Council did approve rental fees for recreational facilities.
The small pavilion will rent for $35 per day for residents, $45 daily for the large pavilion and $100 for the Scout cabin.
Rentals for nonresidents are $70 and $90 for the pavilions and $150 for the cabin.
Melfi reported the water level of Lower Girard Lake is decreasing with the opening of a 24-inch valve.
The water is being let out because of a concern about the stability of the aged dam and to allow the Army Corps of Engineers to determine if the dam can be partially breached and rehabilitated.
yovich@vindy.com