Challenger disputes mayor's financial picture for city

The councilman said the general fund will be in the black only 'temporarily.'
By JOHN W. GOODWIN JR.
VINDICATOR TRUMBULL STAFF
GIRARD -- A councilman who hopes to be mayor says claims of a soon-to-be debt-free Girard made by the current mayor were shortsighted and a little irresponsible to residents.
Mayor James Melfi announced last week that, after fighting through the difficulties of fiscal emergency for more than six years, the city's general fund will be in the black as of May 11. Residents, last week, were sent correspondence explaining the mayor's pronounced change in the city's financial picture.
Melfi attributed the positive uptick in the financial outlook to a myriad of changes in the way city government is handled, including cuts in hospitalization and employee costs, purchasing and new management of resources.
Quotable
Councilman Dan Moadus, who is running against Melfi in the upcoming primary election, called the mayor's comments misleading.
"I am out in the community, and people are under the impression that we are coming out of fiscal emergency, but we are a ways away from that," he said.
Moadus agrees the city's general fund will likely be in the black sometime in May, but he said that will only happen because the city is expecting a large amount of income tax revenue from the Regional Income Tax Agency.
Moadus, however, said those funds will not keep the general fund in the black permanently.
According to Moadus, several things could send the general fund back into a deficit. He said Melfi is counting money from traffic camera fines currently held in escrow as actual general fund dollars. Should those funds be refunded to those who were ticketed, Moadus said, it would impact the general fund.
Moadus also said the city is currently negotiating with four unions that have seen a pay freeze for the last several years. If raises are given in those negotiations, he said, they also would have a major effect on the general fund.
"We have turned a corner, but we have a long way to go. I thought in his exuberance [Melfi] had made an error, but he is sticking to that statement," he said. "You don't pray false hopes, especially when you are still in negotiations with four unions."
Response
Melfi said the figures used to determine the city's financial picture are accurate and that no camera fine money was used in those calculations. He stands by his announcement of a debt-free general fund and said that with proper management it will stay debt free.
"What is important to note is that five years ago the general fund and city were 2.5 million in debt. In early May, that 2.5 million debt is gone, erased, eliminated. That is a fact," he said. "I have said all along that we must move cautiously and make decisions that are sound and reasonable."
Moadus said his decision to publicly address the claims made by the mayor is not politically driven. He claims Melfi's statements were blatantly inaccurate, forcing him to speak out.
To view The Vindicator editorial board's full election interview with the two mayoral candidates, & lt;a href= & quot;http://www.vindy.com/more/girard2007/index.php & quot; target=blank_window & gt;Click here & lt;/a & gt;.
jgoodwin@vindy.com