MAHONING VALLEY Lowellville mayor warns village of possible money problems

Tri-Span Inc. recently bought 15 acres in the village for a new building.
By MARALINE KUBIK
VINDICATOR STAFF WRITER
LOWELLVILLE -- Mayor James Iudiciani Sr. has declared a "budget watch" and warned village council and department heads that Lowellville could be on the verge of a cash crunch.
Income tax collections this year are down almost $20,000 from the same time last year -- $77,783 compared with $96,698.
Lowellville's annual budget is about $230,000, so a $20,000 drop in collections could have significant repercussions, Iudiciani said. He asked department heads to scrutinize their spending, buying only what they absolutely must to keep operations running smoothly.
Some of the decline is because construction of the new school, which houses grades K-12, and demolition of the old school was completed last year, the mayor said, and the village collected income taxes from the construction workers. "But I don't think all of the decline can be attributed to that," he added.
Another reason
Also contributing to the decline, Iudiciani said, are businesses in the village, such as Aluminum Color Industries, that have hit hard economic times and have laid off workers. Fewer workers, he explained, means an automatic reduction in income tax collections.
Aluminum Color began laying off workers last July, according to Tina Spinosa, one of the owners. "We have a great many layoffs, but we are working," she said. Not all of those still on the job are working a full 40-hour week.
When Aluminum Color's entire labor force is working, the company generates about $27,000 in annual income tax revenue for the village, the mayor said.
On the bright side, Iudiciani said, a handful of companies have expressed interest in locating in the village.
Tri-Span Inc., a bridge contracting company based in New Middletown, recently bought 15 acres on McGaffney Street, where it will build facilities to house its office staff, mechanics and construction equipment.
The new building, Iudiciani said, should be completed by the end of this year.
Another company, now based in Youngstown, is also expected to relocate to Lowellville this year, Iudiciani said.
Declining to specify the name of the company or type of business, Iudiciani said the relocation could result in as many as 20 new jobs in the village.