Financial woes rise in Campbell

The mayor doesn't want layoffs, but cuts in services are likely.
By WILLIAM K. ALCORN
VINDICATOR STAFF WRITER
CAMPBELL -- The city's financial problems appear to be intensifying.
And, for the second time this month, city workers did not receive their paychecks Thursday as has been the custom for several years.
Instead, they were to be paid today, which is the official payday, said John J. Leskovyansky Jr., assistant finance director. Leskovyansky will replace Finance Director Dennis Stephens, who has retired effective Dec. 31.
The city is going back to paying Fridays, as it used to be, said William J. VanSuch, director of administration. He said he knows of no contractual requirement or documentation that requires employees be paid Thursdays.
Despite the tight financial situation, Mayor Jack Dill said there is enough money to meet the next payroll in two weeks. However, he said cuts in services are likely in January.
Dill said laying off employees is the last thing he wants to do. Other cuts will be made first, he said.
Dill said he will know the city's financial condition more precisely in mid-January when he expects reconciliation of the 2002 and 2003 accounts to be complete.
Voters' trust
What is ironic, Dill said, is that based on how they voted in the spring and fall, the residents actually trust the administration.
In May, city voters approved on the first try a 3-mill, five-year tax levy that will generate about $220,000 a year, which the city will start collecting in early spring. After the levy passed, the city borrowed against future revenues and brought back laid-off safety forces.
At the November general election, voters renewed the 2.5-percent income tax, again on the first try, Dill said.
But, the financial woes continue. Besides the continued stagnant economy, and the increase in the cost of health insurance for employees, several events have combined to hurt Campbell financially, VanSuch said.
When Youngstown raised its income tax from 2.25 percent to 2.75 percent, effective this year, it cost Campbell about $70,000 a year. Campbell's income tax rate is 2.5 percent, VanSuch said.
As of Dec. 1, income tax collections were about $129,000 behind compared with the same time last year, and the city lost about $160,000 a year in tax revenue when Cold Metal Products closed in 2002, Stephens said previously. Also, the state reduced Campbell's Local Government Fund allocation by $30,000.
With the biweekly payroll normally about $85,000, those losses alone represent about two months of employee wages for the city's 61 full-time and 12 part-time workers.
Reconciling accounts
Leskovyansky said state auditors are reconciling accounts for 2002, which means they are balancing city checks against bank statements.
Dill said he brought in the state auditors in late October. The cash situation was getting low, and the city needed a better handle on the entire financial situation.
Also, Leskovyansky, who has 17 years' experience with the state auditor's office, is working on reconciling accounts for 2003.
In addition to its financial problems, city officials are in the midst of negotiations with all city employee unions, whose contracts expire Dec. 31.
Dill said he believes city employees understand the financial crisis is real and not a negotiation ploy.