Officials put forth fiscal plan

Commission members are waiting to see if the tax issue is passed.
By JOHN W. GOODWIN JR.
VINDICATOR TRUMBULL STAFF
GIRARD -- Officials have a plan that will bring the city out of fiscal emergency by 2011, but members of a state fiscal emergency commission are waiting until after November to accept the plan.
A large portion of the plan is contingent upon voters accepting a 0.25 percent income tax increase for police services, which is on the Nov. 8 general election ballot.
Commission members are waiting to see if that increase is accepted by taxpayers.
The additional income tax is expected to generate about $375,000 annually.
The city was at a deficit of $1,154,000 at the end of 2004. Mayor James Melfi said that figure will be reduced by more than $300,000 by the end of this year.
Melfi told commission members that a court decision allowed $102,000 worth of timber sales money to be transferred to the general fund from the water fund, an additional $125,000 in gas-well royalties was transferred to the general fund from the water fund, gas-well royalties increased and income tax collections this year are higher than expected.
Those factors, he said, are largely responsible for the $300,000 deficit reduction.
"This is good news, but we are still going to have challenges along the way," Melfi said.
The remaining city deficit this year includes the budgets of several departments that are projected to outspend their appropriations by year's end.
The police department is expected to be over budget by more than $130,000, and the municipal court is expected to be over budget by more than $100,000.
Commission members are hoping to meet with Judge Michael Bernard to discuss the court's budgetary issues.
Commission members asked the mayor to be ready with a contingency plan should voters reject the 0.25 percent income tax increase. The mayor said any contingency plan would likely include laying off city workers.
Melfi said if voters accept the income tax, the same level of personnel in emergency services will be maintained and there may be consideration given to bringing on an additional police officer.
Should the income tax be rejected, however, more jobs will be on the line, he said.
John Masternick, commission member, said the mayor's plan is acceptable, but he said changes in spending starting with minimal staffing agreements in the fire department and police staffing issues should be addressed before there are any tax increases.