Girard's financial woes becoming less woeful
Girard Mayor James J. Melfi was downright giddy as he talked about the city's 2003 general fund budget. Words such as "balanced," and "recovery" passed through his lips with machine gun rapidity. There's light at the end of the tunnel, Melfi said.
The reason for his good mood? Girard's $3.5 million operating budget is balanced and the $1.9 million long-term debt, which resulted in the state auditor declaring the city to be in fiscal emergency, has been reduced to $1.3 million.
But that isn't all. The mayor and city council have taken a major step toward achieving the goal of transforming Girard Lakes from an economic liability to a revenue-producing public asset. The city has hired Diversified Evaluation Co. of Pittsburgh to conduct a study of the lakes and assess its economic development potential. A report could be ready in about 30 days.
Finally, Melfi intends to ask council for money to conduct an independent appraisal of the city's water distribution and sewage treatment systems so the administration can determine whether Ohio Water Co.'s $8 million offer for the purchase of the two systems is fair.
Such a cautious approach to Ohio Water's proposal is not only proper, it is warranted. It was Ohio Water that sold the lakes to the city for $2.51 million, which has resulted in an annual debt payment of $234,900 and negligible financial benefit.
Filtration plant
The idea of developing the lakes into a source of drinking water for Girard and the surrounding communities never materialized because the city has not been able to come up with the money for a water filtration plant. In addition, the question of what to do about the dams has never been answered in full. The structures have been declared structurally unsound by the Ohio Department of Natural Resources and about $10 million is needed to bring them up to safety standards.
In Melfi's no-holds barred opinion, the city bought a pig in a poke. Girard does not now have $10 million, and the prospects of its securing a federal or state loan for that amount are not good.
That's why he has been adamant about having a study done on the economic viability of the lakes.
"Resolving the lakes issue should be a city priority," a state audit recommended. "The city must determine whether to sell the property or develop the lakes into a potable water source. Alternatively, the city should consider whether the surrounding property should be developed into a residential area."
The mayor, who has spent a great deal of time evaluating the options, says he has some ideas but is withholding public comment until Diversified Evaluation Co. has completed its assignment.
On the other hand, Melfi is adamant about one thing: He will not tolerate trespassing on the city-owned property. We think he's right and would suggest that the only way to stop such abuse of the public lands -- trees have been cut down to provide those who live around Upper Girard Lake a better view and individual sewage systems are being emptied into the water -- is to take legal action against the perpetrators.
The mayor and city council, along with the state oversight commission, are attempting to lead Girard out of fiscal emergency. They should not have to contend with irresponsible private citizens.
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