Mayor reveals fiscal recovery plan

Officials hope to clear the city of fiscal emergency status by year’s end.

By JOHN W. GOODWIN JR.

VINDICATOR TRUMBULL STAFF

GIRARD — A new financial recovery plan, much more pleasing to city officials who have watched the city struggle through fiscal emergency since 2001, was given to the state-appointed fiscal commission overseeing city spending.

Mayor James Melfi presented the plan to commission members after reviewing it with Auditor Sam Zirafi and Fiscal Supervisor Nita Hendryx. Melfi said if all aspects of the plan are met, he hopes the city can begin taking the necessary steps to release it from fiscal emergency this year.

Members of city council have not yet voted on the plan.

The plan comprises five revenue-generating actions and four expenditure-reducing actions.

The plan, as part of a revenue-generating measure, calls for the drilling of more gas wells in the city limits. The drillings are expected to generate $50,000 in 2007, $125,000 in 2008 and 2009, and $50,000 in 2010 and beyond.

The plan also calls for the cutting of more timber on city property in 2009, generating an anticipated $50,000. The plan also says the city must deposit the anticipated $5,000 annual interest from the Girard lakes/dam fund and any inheritance tax into the general fund.

Expenditure-reducing measures in the plan include maintaining drug free policies for employees, which will result in workers’ compensation savings to the city; reducing other areas of workers’ compensation expenses; and working to reduce health insurance costs.

Key elements for success

The plan includes renewal of a 2004 fire levy and favorable union contracts as key elements in the city’s success. Hendryx said both things will be major factors in whether the city is released from fiscal emergency this year.

“It is imperative that the city renew the upcoming fire levy. That is almost $400,000 in revenue,” she said. “The city is in [union] negotiations right now, and in order to get out of fiscal emergency, they are going to need some concessions from the unions.”

Paul Marshall, head of the oversight commission, said he hopes to see the city out of fiscal emergency in 2007, but said a lot will depend on what comes out of the contract negotiations.

The city, to be released from fiscal emergency, must cover its deficits, produce a five-year plan detailing how it will remain out of fiscal emergency and fix any accounting problems that may have been in place when it entered fiscal emergency.

According to Hendryx, the city had a deficit of $284,000 in the general fund at the end of April, but May and June are heavy income tax generating months.

jgoodwin@vindy.com