YOUNGSTOWN Budget is tight, mayor says
Budget challenges must be dealt with this year, Mayor McKelvey said.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- City council is expected to approve a balanced budget tonight for 2002, but the document almost doesn't matter.
That's because finances are so tenuous that the spending plan will be in flux almost weekly.
"This document is going to be very much a living document," said Mayor George M. McKelvey. "We will have some challenging times ahead of us."
Passage recommended: City council's finance committee recommended 3-0 Wednesday that the full council, which meets tonight, pass the budget as proposed by the administration. James E. Fortune Sr., D-6th, council's finance committee chairman, said he and his colleagues support the administration's efforts.
The budget contains $35.8 million in spending in the general fund and an additional $32.8 million in spending for the police, fire, streets and park departments. It calls for a $13,000 surplus at year's end.
Finance Director Barbara Burtner concedes that revenue could swing wildly up or down during the year from her projections. However, she isn't optimistic that revenue will increase.
Income taxes: Problems started with income tax revenues that dropped all through 2001, Burtner said. The city had a $2.5 million surplus from 2000 that was transferred to the 2001 budget. At the end of 2001, however, there was just a $13,000 surplus for this year's budget because of falling revenue.
Meanwhile, wages and health insurance expenses both increased substantially for this year.
For next year, the news only gets worse. The city's workers' compensation premiums are unusually low this year, but will increase in 2003, Burtner said. That's $3 million more that the city will have to pay.
That's why the city must do everything it can to end 2002 without a deficit, McKelvey said. The budget challenges this year, if ignored, will become a crisis next year, he said.
A constant watch: City officials will update council constantly as they work with department heads to raise revenue or cut costs further, McKelvey said.
City government is under a hiring freeze, travel will be strictly limited and overtime will only be allowed in true emergencies, McKelvey said.
The city will consider paying a lump sum to employees retiring this year who move up their retirement dates, he said, which could save some money.
Layoffs will be the last resort, and the city wants to avoid them, McKelvey said.
Rufus Hudson, D-2nd, expressed concern that fewer houses will be demolished and fewer streets paved this year. People understand the economy is down and money is tight, he said. Nonetheless, they expect those services, Hudson said.
"They aren't accepting excuses," he said.
McKelvey said council will have to decide how to allocate the money for such services. The city will do the best it can with the money it has, he said.
"We can't do anything more and we won't do anything less," McKelvey said.
McKelvey was joking to councilmen, but the frustration in his voice was clear.
"If you find money, call me, " he said.
rgsmith@vindy.com