Committee expresses concern about finances

By Denise Dick

A portion of carryover funds is restricted to specific purposes.

BOARDMAN — With a possible $1 million deficit by the end of 2009, members of a business-citizens committee worry about the township’s finances and believe residents should too.

“There are significant concerns,” said Jim Rosa, who heads the 11-member committee formed last year to offer input and recommendations to township officials. “The township has barely enough money to maintain itself.”

He pointed to 2008’s budget. It was projected to break even with $18 million in revenue and $18 million in expenses.

“Actual revenues in 2008 were reported at about $14 million and $18 million of expenses,” said Rosa, who is an accountant.

The lower-than-expected revenue was mostly attributed to lower real estate tax collections and inheritance taxes.

Projections for 2009 are for revenue to be about $16 million with about $17 million in expenses, resulting in a $1 million deficit.

In 2008, the township used about half of its $6 million carryover. About half of the remaining $3 million is restricted to specific purposes. The remaining $1.5 million is expected to decrease further after this year, Rosa said.

“It appears that the unrestricted carryover funds could be gone in 2010,” Rosa said.

Larry Moliterno, trustees chairman, agrees that the township’s financial situation isn’t good. “The bottom line is that, if you look at the numbers,” he said.

For years the township relied on its inheritance tax, money from the estates of residents who die, for funding. “That money is now running out,” Moliterno said.

Those concerns led to the township’s decision to ask the state auditor’s office to conduct a financial analysis to determine if fiscal watch is imminent, he said.

In that request, officials cited the lagging economy, high foreclosure rates and reduction in personal property tax as reasons they needed help in examining finances. The state is expected to begin that review soon.

Rosa said he supports the trustees’ decision earlier this month to hire a police officer, but notes that this year’s appropriations don’t include hiring more officers.

Moliterno has said he won’t support hiring more police until the state’s review is complete and contracts have been reached with the two bargaining units representing police. Negotiations on the contracts are ongoing.

Rosa noted that employee costs are nearly 80 percent of total township expenditures.

“Business as usual and the compensation arrangements as known in Boardman Township are being seriously challenged,” Rosa said in a statement last week to trustees. “The financial downturn we have all seen has caused many in the private sector to lose jobs and see wages and benefits decreased. This same result is at the doorstep of all government bodies.”

denise_dick@vindy.com