Youngstown council postpones purchases

By David Skolnick

A budget deficit of up to $4.5 million is projected for next year if cuts aren’t made.

YOUNGSTOWN —¬†With the city facing a financial crisis that could lead to as many as 60 job cuts, city council members chose to postpone some routine purchases.

“The public’s perception is we’re still spending,” said Councilman Jamael Tito Brown, D-3rd, vice chairman of council’s finance committee. “We need to take a look at everything.”

That resulted in city council’s opting Wednesday to delay the $97,111 purchase of three waste-treatment plant trucks.

It also postponed approval of an $81,445 contract with the Ohio Environmental Protection Agency for air pollution control services.

Council considered delaying the $225,000 purchase of construction materials for the water department as well as the department’s plan to buy various water meters and meter-reading equipment. But council approved those items because Water Commissioner John Casciano said they were essential.

Council typically approves requests such as these with little, if any, discussion.

With the city facing a projected deficit in its general fund budget of up to $4.5 million by the end of next year, council members say they are watching every penny. Also, council is looking to make budget cuts to save money and reduce the number of layoffs proposed by the city administration.

The city hasn’t identified which jobs will be cut. The layoffs are supposed to be implemented by July 1.

“I’m not saying [the layoffs] won’t happen,” said Councilwoman Carol Rimedio-Righetti, D-4th, chairwoman of council’s finance committee. “But we’re going to do our best to avoid” them.

Between salary and benefits, the average worker costs the city $65,000 a year, said Finance Director David Bozanich.

Eliminating 60 jobs would save the city about $3.9 million a year, he said.

With employees’ salaries and benefits making up much of the city’s general fund, Bozanich said he doesn’t see where big cuts, besides job reductions, can be made. He said he’d be surprised if city officials found $300,000 to $400,000 to eliminate from the budget.

“None of us are eager, including myself, to have staff reductions,” said Mayor Jay Williams.

By state law, council must adopt the 2008 budget by March 31. It will meet in special session later this month to approve the budget.

Council will also meet with department heads to find ways to reduce the budget. The city can amend the budget later this year, if needed.

The city’s financial woes are because of the struggling business climate in Youngstown, Bozanich said. The city’s income tax, which makes up about 70 percent of the general fund’s revenue, is expected to be $44,038,000 this year. It was $46,779,734 in 2007.

The biggest problem is the weakened economy impacting the 2.75-percent tax businesses pay the city on its profits, Bozanich said. That amount was about $9.5 million two years ago. It’s estimated to be about $5.4 million this year, he said.

Also at Wednesday’s meeting, council approved legislation to extend a contract with JAC Management Co. of Struthers to manage the city-owned Chevrolet Centre. A temporary four-month contract with the company expired Feb. 28. The legislation approved Wednesday allows an extension of up to four additional months.

The city administration wants to hire JAC to manage the center on a permanent basis and have a national company provide assistance and handle other responsibilities.

City council members expressed frustration a day before Wednesday’s vote about the administration’s making decisions on the center. One such decision was wanting to hire JAC on a permanent basis — something that most members of council said they learned about by reading The Vindicator.

Rimedio-Righetti and Williams said the administration and council intend to improve communication between the two government branches on future Chevrolet Centre matters.

skolnick@vindy.com