COLUMBIANA COMMISSIONERS Revenue projection for 2005 takes a hit

Sales tax collections for the last two months are running behind 2004's pace.
LISBON -- Columbiana County commissioners have formally accepted a lower revenue projection for 2005 while bracing for a tight budget.
The commissioners separately approved a pair of emergency road repairs Wednesday in St. Clair and Salem townships.
Jim Hoppel, chairman of the commissioners, said he hopes to vote on next year's spending plan next week. The latest revenue estimate, slightly less than $17.8 million, represents a $376,013 reduction from July's $18.2 million forecast.
Commissioner Sean Logan said the cut is based largely on the loss of one month of revenue from the county's half-percent sales tax, which expires in August. Since collections lag behind by several months, the county will continue to see revenue from the levy until December 2005.
The shortfall makes the gap between anticipated revenues and budget requests even larger. Logan estimated that requests exceed projected revenues by close to 12 percent.
Hoppel said it will be "real tough" to shave about $2 million from the funding requests.
Tax revenue sagging
Commissioners had hoped to ask voters to renew the half-percent tax in May, which would have prevented a disruption of revenue. But when voters last month rejected a 1 percent continuous sales levy, Hoppel said commissioners decided to focus on persuading voters to approve the 1 percent tax in May.
The result is that commissioners will not be able to place the half-percent levy on the ballot until November at the earliest. Even if it passes, collections would not begin until April 2006, he said.
It's not just the elimination of the half-percent sales tax that has commissioners spooked. Hoppel cited a disturbing sag in revenue generated by existing taxes. County figures show sales tax collections for November and December are running about 11 percent behind last year's pace.
"We're hoping that the trend doesn't continue, but it very well may," he said. "That's got us a little worried."
Road repairs
The commissioners' vote to continue emergency authorization for repairs to Old State Route 558 in Salem Township and county Route 430 near the state line in St. Clair Township allows county Engineer Bert Dawson to hire contractors without a formal bidding process.
Davis said he plans to lengthen the culvert and reduce the slope on Old State Route 558, also known as township Route 741. The road, which is closed, could reopen in a couple of weeks, he said. The project will cost $62,000, he said.
The other project involves stabilizing Route 430, also known as Calcutta-Smith Ferry Road, in five spots and building up the berm. He said he expects the project to cost $100,000 to $250,000 and take about two weeks. He said it will require closing the road.
Davis said work should start in a week to 10 days.
In other business, the commission:
UApproved a new contract for 36 unionized employees of the county Department of Job & amp; Family Services.
Director Eileen Dray-Bardon said the three-year pact is similar to the one that expires at the end of this year. Workers will receive a 3-percent raise in each of the three years.
Beginning Jan. 1, 2006, employees will have to pay 2 percent of the costs of family health insurance. That comes out to about $21 per month, up from a flat rate of $12 for family coverage now.
Single coverage, which now costs employees $7 a month, will be free under the new pact.
Reimbursement for job travel will increase from 31 cents per mile to 33 cents per mile.
UVoted 2-0 to authorize the county prosecutor's office to try to collect on a $9,975 loan given to a pair of county residents who defaulted. In 2002, John Minerd and Amanda Bowman got the loan to start a store in East Palestine called Psycho Skates. But the store went out of business.
Minerd and Bowman could not be reached for comment.
The Columbiana County Micro Loan Program, administered by the nonprofit Community Action Agency using federal funds and money from the county's revolving loan program, provides low-interest loans to entrepreneurs who do not necessarily qualify for commercial loans.
Logan said this is the first time a borrower has defaulted. Missy Ammon, financial services assistant with the agency, said about eight such loans have been granted in the two years since the program was created.
"It's intended to help the moms and pops, if you will," Logan said.