McKelvey warns cut in funds could have a major impact

The amount budgeted won't last long, the mayor says.
By DAVID SKOLNICK
VINDICATOR STAFF WRITER
YOUNGSTOWN -- Mayor George M. McKelvey told city council that its decision to significantly cut community development agency funding for code enforcement officers could have major consequences.
At a special meeting Tuesday, council approved its $5.26 million CDA budget by a 6-0 vote. Councilman Michael Rapovy, D-5th, was unable to attend the meeting.
What budget includes
The budget includes $101,121.95 for salary and benefits for seven code enforcement officers from this July 1 to June 30, 2006.
But McKelvey said that amount would run out at the end of the year.
In comparison, the 2004-05 city CDA budget provided $459,000 for the officers.
Once the 2005-06 money runs out, council has a number of options, McKelvey said.
UCouncil can adjust the CDA budget to fund the code enforcement officers.
UCouncil can adjust the city's general fund budget to fund the officers.
UCouncil can use a portion of the $650,185 it is estimated to receive in payments from July 1 to June 30, 2006, from businesses that borrowed money from the city's CDA low-interest loan program.
UCouncil can provide no additional funding for the officers.
The city's CDA budget is funded entirely through the federal Community Development Block Grant program. Like other cities with declining populations, Youngstown has experienced deep cuts in CDBG funds over the years.
One problem the president and federal officials have with the program is cities use CDBG money for other purposes than its main goal: to provide assistance to low and moderate income people.
Why cuts are wanted
That is one of the main reasons why city council wants to cut items not essential to the program's main goal, said Councilman Richard Atkinson, chairman of council's CDA committee.
"I intend to wean people away from this," Atkinson, R-3rd, said about city departments that get funding from the CDA budget.
That means no money for code enforcement officers' salaries and benefits from the CDA budget in the future, he said.
"We've gotten comfortable with this money filling in holes," said Councilman Rufus Hudson, D-2nd. "We have got to get back to the central focus of what the funds are to be used for."
The city's public works department, which oversees the code enforcement officers, had requested $558,000 in CDA funds. The CDA committee had originally recommended giving $325,000 for the officers.
But in March, it eliminated the entire amount. After being told that eliminating CDA funds for the officers would cause major cuts, council agreed to take $101,121.95 from housing rehabilitation for low and moderate income residents and use it to partially fund code enforcement officers.
The CDA budget's line item for housing rehabilitation has almost $300,000 left over from 2004-05. The 2005-06 budget, approved Tuesday, puts another $100,000 toward housing rehab.
Atkinson said that is still plenty of money for that program.
skolnick@vindy.com