Mayor proceeds with fiscal caution, optimism

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Girard Mayor James Melfi

By John w. Goodwin jr.

The mayor said there will be bright spots for the city this year.

GIRARD — Mayor James Melfi is calling for cautious optimism in 2009 from residents in this small city working its way out of fiscal emergency imposed in 2001.

Melfi quickly points out that the city has eliminated a $2.5 million deficit in the general fund in 2001 to finish 2007 with a general fund balance of $400,000. The city finished 2008 with a general-fund balance of about $200,000.

Melfi says, however, the city will face some of the same economic challenges seen in other communities of similar size with the loss of its largest employer, Indalex.

The closing of Indalex, which operated an aluminum extrusion plant here, caused a $225,000 tax loss to the general fund in 2008 and an additional $250,000 loss in water and sewer payments.

The loss will be the same for 2009 plus an additional $75,000 because the company operated a short time last year for a total loss of about $550,000 in revenue.

“We really have to look at cost in the first part of 2009 and going forward,” Melfi said. “It’s going to be impossible to make up that loss, but fiscal emergency has prepared us to be able to get through the loss of our largest employer.”

Melfi said the city, despite the loss of Indalex and the overall downturn in the economy, will see some bright spots throughout the year.

The mayor said construction in the city this year will be at an all-time high, generating permit fees and tax revenue from construction workers’ paying city income tax for the duration of each project. He anticipates the total value of construction to be $25 million including the construction of the $6.5 million senior complex.

Melfi also is counting on the city’s portion of a multimillion-dollar federal grant to be shared with the county and Niles for demolition and future rehabilitation to add to the stimulation of the city’s economy.

One major development the mayor is eyeing with hope is the pending expansion at V&M Star Steel, which manufactures seamless steel tubes used mostly in the oil and gas industry.

The city has created a Joint Economical Development Zone with Youngstown that could potentially create 500 to 1,000 jobs. Melfi said the project coming to fruition would means millions to the city.

“Though no formal announcement has been made, all indications for this project are good,” he said.

Looking to the long-term betterment of the city, Melfi is hoping the new administration in the White House will be instrumental in bringing back the Girard Dam and the lakes it creates. The city breached the dam several years ago under orders from the state because it had been deemed unsafe.

The mayor said he has asked council’s support to make the Obama administration aware of the situation involving the dam, which Melfi hopes can be rebuilt under the Obama initiative to repair infrastructure throughout the country.

“[Temporarily] eliminating the dam is not what we set out to do and it wasn’t very popular, but we did it to follow the law set forth by the state. Now we have put the city in a position to have that dam rebuilt under this new initiative,” he said.

Melfi estimates the cost to repair the dam at about $16 million.

jgoodwin@vindy.com