Township asks state to review finances

By Denise Dick

Boardman official looks ahead to 2010

BOARDMAN — The township wants the state auditor’s office to perform a fiscal analysis of Boardman’s financial situation.

“Due to the economic downturn in the economy, high foreclosure rates and the reduction in Personal Property Tax with the implementation of the Commercial Activity Tax, Boardman Township is seeking further assistance to determine its financial state as revenue projections are becoming more difficult to calculate,” Administrator Jason Loree wrote in a letter to the state auditor’s local government services branch.

The letter was to be mailed Thursday.

Loree said that as the budget tightens, he wants another set of eyes to review budget numbers and provide input on township finances.

“We think we’re going to be OK this year,” Loree said. “But there are some concerns about next year.”

Foreclosures estimated at between 300 and 400 in the township means property tax will likely not be collected on those properties.

The Commercial Activity Tax is an annual privilege tax measured by gross receipts for all types of businesses in Ohio: retailers, service providers (such as lawyers, accountants and doctors), manufacturers and others. Over time, it’s replacing money generated by personal property taxes.

In reviewing the numbers with the fiscal office and members of a business citizens committee, it looked like it would be close between revenues meeting estimated appropriations.

“If property tax collections are significantly down, it would have an impact on what our revenues would be,” Loree said.

If money comes into the township from property tax collections in small chunks at a time, there could be a cash-flow problem, he said.

The administrator, though, says the request isn’t cause for alarm about the township’s financial situation.

“There’s no panic button, no emergency,” he said.

Larry Moliterno, trustees chairman, said the township is trying to be proactive.

“We’re anticipating there will be a problem down the road,” he said. “Rather than waiting until then and reacting to it, we’re saying let’s get ahead of it.”

Moliterno also said it’s a good idea to have an outside, independent source review finances.

“We want to see the entire township — elected officials, the administration and labor unions — all working together to deal with the issues the economy is throwing at us,” he said.

Jim Rosa, who leads the citizens business committee, said committee members have asked township officials for detailed information about finances including projections compared to actual revenues for 2008. They haven’t yet received all of that information, he said.

Until it’s received, Rosa said he can’t offer an opinion on the request for a review by state auditors.

Last November, voters passed a 2.2-mill safety services levy to fund police and fire. During the campaign, there were promises of hiring new police officers and returning firefighters to work who had been laid off. The levy was to generate $2,078,924 annually.

Six of the nine furloughed firefighters returned to work within a week of the election.

Loree said the township still plans to hire police officers as well.

“Right now, we have nine candidates, but we’re not going to do anything with them until we’re done with contract negotiations with the patrol and rank,” he said.

Those negotiations are ongoing.

Moliterno said plans to hire police officers remain intact.

“We have to live up to that commitment,” he said.