LIBERTY TOWNSHIP Audit done by state forecasts deficits

The audit makes a number of suggestions to increase revenue.
By TIM YOVICH
VINDICATOR TRUMBULL STAFF
LIBERTY -- The health of the township's general fund has eroded and will run with red ink next year without added income and cost cutting.
Those conclusions are made in a performance audit released Monday by the Ohio Auditor's Office.
The audit was requested by township trustees in an effort to improve fiscal accountability and services and help measure efficiency and effectiveness.
Auditors said the general fund that had a balance of nearly $1.4 million in 2002 will have only a $188,580 balance by the end of this year.
The fund will have negative balances of $496,550 by the end of 2005, almost $1.3 million in 2006 and a little more than $2.1 million in 2007. Because of the projected deficits, decreases in employee expenditures may be necessary to help achieve fiscal solvency, the audit says.
For example, the police department received $1.8 million in 2003 from 12.3 mills in levies. It's forecast to end this year with a $161,897 deficit, which will increase to $756,314 in 2006 and nearly $1.2 million by the end of 2007.
A positive note
The audit is not entirely critical of the township. It notes the township has established a Community Improvement Corp. to promote industrial, economic, commercial and civic development.
Auditors recommended the township spur economic development, such as offering tax abatements by establishing Joint Economic Development Districts with other communities and working with the Youngstown/Warren Regional Chamber of Commerce and Ohio Department of Development. Such initiatives could generate $357,400 in added property tax revenue, although the audit notes that the lack of water and sewer systems have hindered growth.
The audit made suggestions and comments in a number of other areas:
UThe township has not established a formal and consistent financial planning process, including financial forecasts.
UThe township lacks adequate internal controls for its budgetary and expenditure process.
UConcerning full-time police officers and firefighters, the audit pointed out they receive "more generous" supplemental benefits such as health care than those of comparable communities. The audit noted that the township does not collect for health-insurance premiums for its full-time workers. According the State Employment Relations Board, 70 percent of employers require full-time employees to contribute to family plans.
UPolice salaries are in line with their peers in other communities. While longevity pay and annual wage increases are higher than their peers, benefits such as vacation, personal days and holidays are lower.
Dispatching center
The audit also reviewed the emergency dispatching center, which will go into the red over the next three years. Without added revenue, the center will be unable to operate with current expenses. Alternatives to in-house dispatching are rejoining the Trumbull County 911 emergency system or consolidating dispatching with other communities, such as Girard.
Because the post office in the township administration center is operating at a deficit, the audit suggested the township renegotiate its contract with the U.S. Postal Service. It should also consider decreasing hours to reduce expenses.
yovich@vindy.com