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Tight city funds in store for 2009
The city should end this year with a $100,000 to $500,000 surplus, its finance director says.
YOUNGSTOWN — The city administration is seeking city council’s approval today to spend money during the first three months of 2009 while work is done to avoid a $3.5 million projected deficit for next year.
The city typically passes a quarterly budget in December for the first three months of the following year, said Finance Director David Bozanich. The administration then gives council a proposed full-year budget in early January. After budget hearings with department officials, council approves a final budget in March.
“I’m very concerned about 2009,” Bozanich said.
He’s projecting a $3.5 million shortfall for next year. “I’m looking at ways to reduce that,” he added.
Without cuts or revenue increases, the city would have to lay off about 60 to 80 employees to make up that projected deficit.
At the start of 2008, Bozanich said he expected a deficit of more than $3 million by the end of the year and about $6 million by Dec. 31, 2009, if cuts weren’t made and revenues not increased.
But the city made up that amount through a firefighter buyout program, the sale and lease of some assets, keeping some jobs vacant and filling some positions with employees at lower salaries than their predecessors.
The city should end this year with a $100,000 to $500,000 surplus, Bozanich said.
City council will have a special meeting Dec. 30 to reconcile the 2008 budget. Approval of the 2009 quarterly budget may have to wait until then as well.
Council plans to discuss the quarterly budget today. But “if we find we’re not satisfied” with the answers to questions about the financial plan, council will wait until Dec. 30 to approve it, said Councilwoman Carol Rimedio-Righetti, D-4th, chairwoman of the finance committee.
Councilman Paul Drennen, D-5th, a member of the finance committee, also said a vote today was uncertain, but a decision would be made by Dec. 30.
Even though money is tight, the city is considering hiring a park and recreation director at an annual salary of $55,000 to $61,000 based on experience.
Jason Whitehead, the mayor’s chief of staff, has served as interim director since May 2007 when longtime director Joseph McRae abruptly retired from the position. Whitehead doesn’t receive extra compensation for the job.
The city’s civil service commission is expected to start a search next month, Whitehead said.
“Council seems to be very interested in filling the position as quickly as possible,” he added.
The park and recreation department needs a director, but if the money isn’t there, one won’t be hired, said Drennen, who chairs council’s park and recreation committee.
skolnick@vindy.com