Official raises city’s deficit estimate
Youngstown finance director David Bozanich
The city expects to raise its water rates, primarily for those who don’t live in Youngstown.
YOUNGSTOWN — How bad is the city’s financial condition?
Finance Director David Bozanich is projecting the city needs to cut expenses or increase revenue by $3.5 million to avoid a general fund deficit for next year. It was only a week ago Bozanich projected the deficit at $2 million to $3 million.
Also, 2010 is going to be a challenge for the city, Bozanich said Tuesday at a city council finance committee meeting.
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 revenue not increased. That would have meant about 60 layoffs.
But the city made up that $3 million through a firefighter buyout program, the sale and lease of some assets, and keeping some jobs vacant, Bozanich said.
During the city’s economic struggles this year, only the firefighters agreed to a buyout plan, said Councilman Jamael Tito Brown, D-3rd.
Other departments need to do something similar for 2009 or their budgets could be cut, he said.
To keep expenses down, department heads and nonunion employees will not receive pay raises this year.
Also, Bozanich said Tuesday that the city expects to raise its water rates, primarily for those who don’t live in the city, sometime next year.
That decision will be made after a $92,000 study of the city’s water distribution system and its rates is complete.
The study by the PFM Group of Cleveland was originally to be finished by October.
It should be done no later than January, Bozanich said Tuesday.
A study conducted by the same company to have Youngstown use its water system to charge income tax to workers in Boardman and Austintown was commissioned in August 2006 with an original completion date of November of that year. It wasn’t until March of this year that the report was done.
skolnick@vindy.com