Saturday, December 22, 2007
The city still may face some challenges.
By JOHN W. GOODWIN JR.
VINDICATOR TRUMBULL STAFF
GIRARD — City officials are happy to start the coming year in the black for the first time in 10 years, but with the potential closing of a major city business and coming financial demands, they say they must remain frugal.
City officials met with members of the state fiscal oversight commission, put in place to oversee finances in the city until the city emerges from fiscal emergency, to discuss the $300,000 surplus the city will reportedly have entering 2008.
Mayor James Melfi said city and state officials are pleased with the city’s progress.
“The bottom line is this, the city, in the general fund, has not had a positive balance since 1998, so when we start 2008, it will be the first start of the year in the black in 10 years,” he said.
According to Melfi, the city’s debt was $2,450,000 at its peak in 2002 and $265,000 at the start of 2007. Melfi said the city has managed to create a surplus each year to dig its way out of debt.
One issue that may eat up at least part of any surplus the city currently has is the purchase of new police cars.
The city last bought a fleet of police cars in 1996. At that time, 18 were purchased. One of those vehicles was destroyed in an accident, three are now being used for spare parts, and 14 are still patrolling city streets.
Police officials have been asking the city to replace the aging fleet for a great deal of time, citing constant maintenance problems with the cars. Melfi said he is not in favor of replacing the entire fleet, but he is willing to address the issue.
“We got to this point by being very cautious to cost, and we are going to continue to be cost-cautious,” the mayor said. “I am not for buying an entire fleet of cars. There is no cost benefit to buying a fleet. I am in favor of my plan — three cars purchased with cash and no interest.”
Melfi said one of those cars would be used on each of the three shifts. The three current cars with the most mileage would be removed from service.
The mayor said the city does have enough money available to purchase three police cars.
Another issue on city officials’ minds is the potential loss of a major employer and source of tax revenue in the city.
Indalex Aluminum Solutions said it is likely to close its Girard plant because of a slowdown in new home construction nationwide.
There simply isn’t enough demand for the window and door frames that are produced from the company’s aluminum extrusions, a spokesman for the Chicago-based company said.
About 300 workers would lose their jobs, starting in February, if the plant is closed.
Melfi said the city has had an average surplus of more than $400,000 in the last several years. The city collects about $300,000 in taxes from Indalex. He said loss of the company will not force the city back into the red, but it will make city officials continue to operate with extreme caution when it comes to spending.
He said officials may have to forget about some extra services that would have been started or brought back since the city is now in the black.
“That is what puts a damper on this season,” he said. “There won’t be much breathing room if we lose Indalex operations.”
jgoodwin@vindy.com