Appropriations for '06 accepted

Commission members want to keep a close eye on the city's spending.
By JOHN W. GOODWIN JR.
VINDICATOR TRUMBULL STAFF
GIRARD -- Members of the Girard Financial Planning and Supervision Commission approved the city's 2006 appropriations, but the city may find itself on a commission-imposed monthly budget.
The commission is charged with overseeing all spending decisions while the city is in fiscal emergency, which it has been in since 2001.
The city has three funds that will be in the red at the end of the year. Paul Marshall, commission chairman, said all three accounts must be balanced and have a five-year forecast in the black before the city can emerge from fiscal emergency.
The general fund will be $600,000 in the red, the agency reimbursement fund will show a $42,000 deficit, and the capital improvement fund will be $461,000 in the red by the end of the year.
According to the approved budget, the general fund deficit will be reduced to $524,381 by the end of 2006 providing there are no increased demands on the city's overall budget.
Concerning the court
Mayor James Melfi and council members have shown concern that the municipal court, which is funded by the city, may demand more money from the general fund than it was appropriated for 2006. Judge Michael Bernard demanded additional appropriations from the city via court order this year.
The court was appropriated $600,000 to operate in 2006. Commission members said if the court demands additional comparable funds next year, the general fund deficit could be increased by more than $250,000.
Sam Zirafi, city auditor, told the commission that Judge Bernard has agreed to again start putting $16,992 monthly and $27,379 annual payments into the city's general fund. The payments cover the cost of some court employees and a portion of the debt owed on the building housing the court and police.
The payments had been made regularly until the judge stopped them after a financial dispute with city leaders in November. Zirafi said the payments will resume in early 2006.
According to Marshall, the commission is considering a move that will keep tabs on spending in the city, including court spending, on a monthly basis. He said the commission will meet in January and vote on placing the city on a monthly budget based on last year's revenue.
Marshall said the city cannot deviate from a monthly budget set by the commission.
"This commission has the power to set up a monthly revenue and expenditure schedule. If the city violates that, then the financial supervisor has the power to say you have to stay within this budget," he said.
Earlier this year, Judge Bernard took the city to appellate court to demand more funding. Marshall said the city could be forced to fight the matter in court should the judge take similar action in 2006.
jgoodwin@vindy.com