GIRARD Panel votes for monthly budgets

The mayor may eliminate the ambulance service and lay off firefighters.
By TIM YOVICH
VINDICATOR TRUMBULL STAFF
GIRARD -- The city will be forced to live within monthly budgets beginning Oct. 1 if its financial problems continue to fester.
The Girard Financial Planning and Supervision Commission voted unanimously Tuesday to impose the restrictions.
The seven-member commission was formed by the state auditor's office in August 2001 to provide guidance to the administration and council after the city was placed in fiscal emergency.
Despite commission warnings, the city's anticipated general fund deficit has increased from $1.3 million to $1.66 million, including $43,000 in the past month.
Nita Hendryx, the financial supervisor appointed by the state auditor, said income tax receipts have fallen by $250,000, compared to the same period in 2002.
Hendryx projected an anticipated deficit of $270,000 by the end of this year, in addition to the $1.66 million.
Statements
Although commission chairman Joe Gray wanted to impose the monthly budgets immediately, Mayor James J. Melfi, a commission member, and Frank Rich, city safety director, asked for the extension until Oct. 1.
Until then, the mayor will submit monthly financial statements to the commission. Also, the 2004 general fund budget will be sliced 15 percent.
Gray pointed out that the city will have to cut costs or increase revenue by $70,000 monthly to balance the general fund.
Gray termed the commission's action as laying a "paper trail" to support any legal action it may take against the city to live within its annual appropriation.
Gray said the commission may have to test its authority to show that it's "not just fluff."
In asking for a 60-day delay, Rich indicated that revenue may rise with help from the municipal court fund and that the city is receiving a $45,000 one-time rebate in hospitalization costs for one city employee.
Prevention
Gray said he thinks the city is going to run out of money before the end of the year. To prevent it, the commission may have to take the city to court as required by state law.
"This is the reality, Frank," Gray told Rich.
Melfi said his administration is working with the commission and has reduced expenses.
The mayor has said he may eliminate the city-operated ambulance and lay off firefighters to reduce costs.
Commission member John Masternick said the city should have been reducing expenditures throughout the years instead of putting itself in a position to make larger cuts now.
"Waiting hasn't worked," Masternick added.
"We're going to be the gatekeeper," Hendryx said, noting that when the city runs out of money in the general fund, checks, including payroll, can't be written.
yovich@vindy.com