Melfi: Defeat of tax is setback

James Melfi says some jobs will not be filled.
By JOHN W. GOODWIN JR.
VINDICATOR TRUMBULL STAFF
GIRARD -- Despite failure of a proposed additional income tax, Mayor James Melfi says the city will balance its budget and emerge from fiscal emergency -- it's just going to take a little more time.
City officials, in Tuesday's election, asked voters to consider a 0.25 percent income tax over a five-year period for police services. About 56 percent of voters turned it down.
Melfi said the tax failure will directly affect the general fund, which is already operating in the red. He said money for operating the police department is taken from the general fund.
The city, Melfi said, has been doing a good job of reducing the deficit and will continue to do so. The state placed the city in fiscal emergency in 2001 with a general fund deficit of about $2.4 million. The most recent figures, Melfi said, show the deficit has been reduced to about $805,000.
"This is going to be a challenge," he said. "There is no doubt that if the income tax had passed, we would be out of fiscal emergency a lot sooner."
Melfi had once predicted that the city could emerge form fiscal emergency "much sooner" than 2011. He said that prediction will be a little more difficult to keep with the failed income tax.
Spending restraints
In an effort to continue reducing the city deficit, Melfi said, officials will have to be cautious in spending. He said no currently vacant positions in the city will be filled in the foreseeable future. He also said any retirements in 2006 will go unfilled.
Melfi said any layoffs resulting from the failed income tax would be determined by year's end. He said the best course of action is to wait on reports from the city and state auditor to determine the city's full financial picture for 2006.
"I have been down this road for the last four years and the goal hasn't changed: reduce the debt and balance the budget. We are not going to make any rash decisions. We will have to see how the year ends," he said.
"The challenge is going to be next year. We will obviously need to look at police and fire personnel. The court will also need to look at its budget and not challenge the general fund any more than it already has," the mayor added.
Post-vote analysis
Melfi said the income tax issue may have fallen victim to its ballot language and perceptions of the general public.
Many people, Melfi said, have a negative perception of police in general -- seeing them as individuals who hand out expensive tickets and don't deserve support.
He said such a perception is unwarranted for a department that does such good work.
Melfi also said some residents are less likely to vote for an increase in income tax. He said another option could be to present the issue to voters as a tax levy.
The money request, Melfi said, will likely appear before voters again. It will be up to city council to determine if it appears before voters as an income tax or tax levy.
jgoodwin@vindy.com