Still wary, city secures money for 2008 deficit

By David Skolnick

Youngstown can’t guarantee layoffs won’t still occur.

YOUNGSTOWN — Between a firefighter buyout program and the sale and lease of its assets, the city has found the money needed to eliminate its projected deficit for this year.

But with projections of a greater deficit for next year, the city’s economic woes are far from over, said Mayor Jay Williams and Finance Director David Bozanich.

“This should provide no sense of comfort,” Williams said. “We continue to look at making cuts and adding revenue. We have to deal with 2009. With the collapse of Wall Street, the economic problems nationwide and statewide, which traditionally hits this area harder, the crisis is still there.”

The city started the year with an expectation that it would have a general fund 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 found.

Because of the local, state and national economy, Bozanich said he’s unsure what the city’s deficit will be at the end of the year. But Bozanich said he’s optimistic the city won’t end this year with a deficit in its general fund.

Through the buyout program and the lease and sale of assets, the city has reduced its costs about $3 million.

City officials had talked earlier this year of laying off 60 employees or more because of the financial problems. To date, the city hasn’t laid off any of its employees.

Bozanich said he cannot guarantee layoffs won’t occur.

The city’s board of control on Thursday signed a $1,345,000, 20-year lease with Communications Capital Group LLC to have the company lease cellular telephone towers at three different locations. The company is providing the money up front to the city.

In July the city signed a 10-year lease renewal with AT&T for its service and maintenance center to remain at a city-owned facility on Salt Springs Road. The company is paying $411,400 in its first year to the city in rent.

It also sold a former industrial site near Division Street earlier this year for more about $650,000.

The city’s retirement/resignation incentive for firefighters saved it about $850,000 this year and will provide an equal amount of savings next year. In all, 20 high-ranking firefighters took the deal and are being replaced by entry-level firefighters.

The city is looking at additional options to save money, said Bozanich, who declined to discuss them.

“Last year was a negative year, and this turned out to be an even worse year on the revenue side,” he said. “We plan on a balanced budget by the end of the year. Can we keep it up in 2009? That’s a big question.”

The city has held discussions with other unions, but it was only the firefighters who’ve “insulated themselves from additional reductions” because of the plan they accepted, Williams said.

“We must achieve substantive and ongoing savings in key areas [with other unions] if we are going to survive the national, state and regional financial crisis,” he said. “2009 may prove to be an exceptionally challenging year, and it’s only three moths away. If we do not remain vigilant and proactive right now and going forward, it will only worsen the situation later on. I implore the unions to take little comfort in the fact that we got through 2008 without layoffs.”

skolnick@vindy.com