HUBBARD Officials figure out revenue distribution

The councilman said he is happy with the compromise.
By JOHN W. GOODWIN JR.
VINDICATOR TRUMBULL STAFF
HUBBARD -- City officials have reached a compromise on how income tax revenue will be distributed to various city funds starting in 2006.
Officials said the city had to acquire a bond to pay for projects such as curb and sidewalk upgrades, work at the service center, work at Maple Grove Cemetery and the new police station. Now, officials say income tax allocation restructuring is needed to pay off the bond.
The breakdown
Monday, council decided the new revisions will allocate 47 percent to the general fund, 28 percent to pay off the debt, 6 percent toward capital improvements, 16 percent toward streets and 3 percent toward parks and recreation.
An allocation plan proposed by council last month would have given streets an 18 percent allocation, but would have left the parks and recreation fund with only a 2 percent allocation and capital improvements a 5 percent share.
Councilman Patton Gilliland said the initial allocation of 2 percent was unacceptable and would have been detrimental to the parks' five-year plan. He wanted 4 percent, but said the 3 percent is a fair compromise.
"Had we kept the 4 percent over the five years I think we would be in good shape," he said. "We are deviating from the plan a little, and I don't want to deviate too much."
With the 3 percent allocation, Gilliland said the parks will generate about $58,000 annually instead of the $40,000 that would have been generated with a 2 percent allocation. He said the parks spend $32,000 annually in operating costs.
Main items
Gilliland said the 3 percent allocation will allow officials to finish most of the 13 main items in the parks' five-year plan. The plan includes paving in some areas, demolition of a building, new swings in the two parks, a new basketball court and work on restroom facilities in the parks.
Gilliland, however, said some items may not be completed. He said plans for a new park in the 2nd Ward have been put on hold. The park, he said, would have cost about $100,000.
Council also passed a motion Monday authorizing the control board to seek bids for complete insurance packages for the volunteer fire department and other city insurance needs. The current insurance contract expires at the end of the year.
jgoodwin@vindy.com