YOUNGSTOWN Finance director expects deficit but has plans to erase it in 2004

The city's deficit has been cut by about $400,000 in a year.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- Weather-related costs and revenue shortfalls will combine to leave the city with a $1.2 million deficit at year's end.
The finance director, however, says he can erase the deficit next year without cutting city services.
Finance Director David Bozanich told city council's finance committee Wednesday he expects to end the year with the deficit.
City income tax that's paid quarterly and arrives in December can vary by up to 10 percent, so Bozanich said he won't be sure of the deficit until January.
The city finished 2002 with a $1.6 million deficit.
Despite having about 30 workers who remained on layoff, that deficit has been cut by only about $400,000.
Why it's there
The deficit lingers for two main reasons, Bozanich said.
One is inheritance tax, which he said is notoriously unpredictable. Receipts are about $500,000 less than expected for the year, he said.
Second is winter and summer weather costs that Bozanich called unavoidable. The city spent about $300,000 more than expected on road salt, he said. Overtime costs related to summer flooding and a tornado that blew through the East Side cost about $200,000, he said.
The city could lay off more workers to erase the deficit now, but that's not necessary, Bozanich added.
The deficit should be gone next year as older, more-expensive workers retire, he said. Their replacements will have lower salaries, he said. That approach also avoids cutting city services, he said, which is important to residents.
Bozanich said he is in constant contact with state auditors. While not condoning the deficit, state auditors see that the city has made great strides, he added.
In comparison, Youngstown is faring better than many cities, Bozanich said. He pointed to Cleveland and Pittsburgh. Each is laying off hundreds of city workers and gutting services.
"We think other cities would like to have our outlook," he said.
rgsmith@vindy.com