Struthers mulls bringing back debt-service fee

Opponents of re-establishing the fee say $3 is too much, too soon.

By WILLIAM K. ALCORN

VINDICATOR STAFF WRITER

STRUTHERS — Council is considering a plan to re-establish the debt-service fee for the city’s waste treatment plant, which was eliminated by the previous council in June 2007.

Council eliminated a $6.50 a month debt-service fee and replaced it with a $3.50 a month storm water management fee.

Most of the council members who eliminated the debt-service fee are no longer in office, however, and the new council is moving to re-establish a $3 per month debt-service fee for the waste treatment plant.

Proponents, including Mayor Terry P. Stocker, who as a councilman voted to save the fee last year, said the new fee is needed to pay current debt and to build a fund as a hedge against expensive repairs that could be needed in the future.

Opponents of re-establishing the fee say $3 is too much, too soon.

“It is irresponsible to be talking about charging the residents a fee without a budget in place that will determine how much money is needed,” said Councilman at-large Daniel Yemma, one of three of last year’s council members who was re-elected.

The ordinance proposing a new $3 a month debt-service fee came in as an emergency. But, after discussion in caucus before council and during the council meeting, 4th Ward Councilman Robert Carcelli III moved to pass it to a second reading.

Yemma, who voted against the ordinance, urged council in caucus and during the regular meeting to take more time and study an analysis of the situation provided by MS Consultants of Youngstown, parts of which he said is misleading.

“I don’t think it’s fair to ask four new councilmen to act this quickly. Enacting a tax on the citizens is an important matter,” he said.

The consulting firm report offered four options:

UDo nothing, and pay current debt only, and the fund will be depleted in 2015.

UDo nothing and pay debt on current and proposed projects, and the fund will be depleted in 2010.

UWith $100,800 a year going to the sinking fund from a $2 monthly debt-service fee, and paying debt on current and proposed projects, the fund would have a reserve balance of $400,000 to $600,000.

UWith $151,200 a year going to the sinking fund from a $3 monthly debt-service fee, and paying debt on current and proposed projects, the reserve fund would be between $650,000 and $1.5 million.

alcorn@vindy.com