GIRARD Officials disagree over finances

The mayor says the court's contribution to the city could increase.
By TIM YOVICH
VINDICATOR TRUMBULL STAFF
GIRARD -- The city's financial picture varies, depending on who's doing the talking before the state commission overseeing spending.
Though Mayor James J. Melfi says the city could nearly balance this year's general fund budget, the state-appointed fiscal supervisor said the city could end the year $100,000 in the red.
Those were the views expressed Tuesday during a meeting of the Girard Financial Planning and Supervision Commission. The commission was named to oversee city finances after it was placed in a state-imposed fiscal emergency in August 2001.
Nita Hendryx, fiscal supervisor, told the commission the city general fund deficit is projected at $279,782.
However, Hendryx added, a contribution to the fund from municipal court and transferring cable franchise fees and capital improvement money to the general fund could nearly eliminate the deficit.
Melfi countered that Judge Michael A. Bernard has told him that $39,000 the judge is giving the city in unspent court funds this year could be as high as $90,000.
This is in addition to $125,000 from court funds this year.
Warning about transfers
Melfi asked for the commission, of which he is a member, to have patience and to support him, but Hendryx said such money transfers are "one-shot" increases to the general fund and can't be depended upon in the future.
Hendryx warned Melfi that moving money from another fund source to the general fund will eventually catch up with him.
Councilwoman Kathleen O'Connell Sauline, D-2nd, chairwoman of council's finance committee but not a commission member, agreed with Hendryx.
She termed the administration irresponsible for transferring money from other funds because their balances will eventually be depleted.
Melfi countered that there has always been transfers and they will continue. The mayor said he will have to "take appropriate action," a reference to eliminating the city-operated ambulance service and laying off firefighters, if the general fund isn't balanced as the year comes to a close.
Commission member John Andrews pointed out that if nothing is done to curb spending or increase revenue, the accumulated deficit will rise from $1.6 million to $1.7 million in 2004.
Selling assets
Another member, Robert Delisio, said he doesn't think the commission's recommendation of selling off city assets is being heard.
Delisio said the city needs to look at selling assets like the upper and lower Girard Lakes. "If not, there will be a reduction in services," he said.
After the meeting, commission chairman Joe Gray said the mayor isn't prepared to make the "hard decision" of reducing services.
If there had been layoffs earlier in the year, the city wouldn't be faced with a large number of layoffs this year, he said.
Gray said the administration is focused on month-to-month solutions rather than looking at the long-term solutions to the city's financial woes.
yovich@vindy.com