Advisory board outlines issues for budgeting in Boardman

By Denise Dick

Among the topics the committee still wants to address is the need for a township levy.

BOARDMAN — The township should develop a capital improvement budget, stop relying on inheritance tax receipts for operating expenses and focus on allowing no cost increases in upcoming labor contracts.

These are some of the initial recommendations from an 11-member business advisory committee and given to trustees.

James Rosa, a certified public accountant who works at Hill, Barth King and leads the committee, said the committee will continue to meet and make periodic recommendations.

One of the topics on the short list of things left to be addressed is a recommendation regarding a levy, including the type of levy and its amount, he said. “I think there needs to be some urgency,” Rosa said.

The group formed earlier this year after the layoff of 30 full-time and 12 part-time township employees because of dwindling township revenues.

Voters last November rejected a 4.0-mill levy that would have generated about $4 million annually for five years.

Committee members recognize that some of their recommendations can’t be implemented overnight, Rosa said.

If some recommendations aren’t feasible, he said committee members hope trustees provide an explanation to them.

“I think they did a great job,” said Trustee Kathy Miller of the committee recommendations. “I am just grateful for their work and their offer to help.”

Trustee Larry Moliterno agreed. “So far, I feel good about what they’re trying to do,” he said.

Robyn Gallitto, trustees’ chairwoman, noted many of the items listed by the committee are things the board understands must be addressed. One recommendation calls for the township’s operating budget not to rely on inheritance tax receipts beginning in 2009. The operating budget should be based on predictable revenues, committee members wrote.

Moliterno said trustees realize the need to stop relying on inheritance tax, but he isn’t sure that can be implemented for next year. The township has been relying on those dollars for several years.

Gallitto said that practice should stop and inheritance tax receipts used instead for capital projects as the committee recommends. But she thinks those dollars should be phased out of the operating budget over a few years rather than removing them all at once.

Rosa said he understands that but believes it’s a goal the township should keep in mind.

“Upcoming labor contracts should have the goal of providing no cost increases over the next several years,” another recommendation says.

Miller believes that’s achievable too. Two unions, those representing firefighters and the road department, have already approved pacts with no raises, she said.

Moliterno acknowledged that some employee costs, such as health insurance, are out of trustees’ hands. A health insurance committee with representatives from each employee union has been formed to try to work to keep those costs manageable.

Gallitto said that no cost increases to the township is always a goal when it comes time for contract negotiations. If a union and trustees can’t come to agreement and the contract ultimately ends up in the hands of an arbitrator though, that’s out of trustees’ hands, she said.

Gallitto believes though that the unions recognize the township’s financial hardship. She also cited the latest fire and road department contracts which called for no wage increases.

The committee also suggests development of a capital improvement budget to identify all projects and capital improvements including building and structural improvements, infrastructure and water abatement projects. As part of that budget, the committee recommends completion of an evaluation of the physical plant owned by the township.

Other recommendations:

UThe fiscal officer should be involved in all aspects of financial management of the township. Currently, Administrator Jason Loree is responsible for the appropriation analysis and William Leicht, fiscal officer, and his office are responsible for accounting for receipts and disbursements.

UThe township should hire an in-house information-technology professional to manage and maintain the township’s computer networks and computer system. The township now relies on an outside company to do the work.