Fiscal watch criteria not met in Boardman

With no carryover at the end of this year, Boardman must have a balanced budget for 2010.

By Denise Dick

BOARDMAN — The township does not meet the criteria for fiscal watch — at least not yet.

For several years, though, the township has been spending more money than it takes in, relying on carryover from the previous year’s budget to fill the gap. By law, an analysis by the state auditor’s office can examine only the current fiscal year.

“As of the end of 2009, the township doesn’t fall into fiscal watch,” Nita Hendryx of the state auditor’s office told trustees and members of the public at a meeting Wednesday.

The township has no carryover going into 2010, however, said Hendryx, chief project manager of the auditor’s local government services divisions.

The fiscal analysis presented was a draft document, so changes could be made. The analysis covered the general fund.

“You can see what the trend has been,” Hendryx said, pointing to the difference between revenue and expenditures. “This kind of gives you a picture.”

The report means the township will have to pass a balanced budget for 2010, said Trustee Chairman Larry Moliterno.

“This could be a positive,” he said.

Wednesday’s meeting was the first time trustees heard the report too.

Moliterno said the first step is to determine what the budget will be for 2010.

Hendryx said that 85 percent of the township’s budget is personal services, referring to personnel, including salary and overtime.

“Salaries and overtime really are a driving force in the budget,” she said.

That’s not an unusual percentage compared to other communities, said Trustee Robyn Gallitto, because communities provide services.

“It’s not unusual, but it’s something to keep in mind as you move forward,” Hendryx said.

Though the township doesn’t meet fiscal watch this year, it will face a deficit by next year, she said.

Township officials requested the fiscal analysis in March, citing the toll on finances caused by the downturn in the economy, high foreclosure rates and the reduction in personal property tax with the implementation of the commercial-activity tax.

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.

For years the township relied on its inheritance tax, money received from the estates of residents who have died, to meet its budget. Over time, that money has dried up.

After voters rejected a 4.1-mill levy in 2007, about 30 full-time township employees, including nine firefighters, were laid off, and one fire station was closed.

Last fall, voters passed a 2.2-mill police and fire levy expected to generate about $2 million annually. In promoting the levy, township officials pledged to hire up to 10 police officers, recall laid-off firefighters and maintain three fire stations.

One police officer has been hired. The police department, which totaled 63 a few years ago, is down to 47.

Six of the nine furloughed firefighters were recalled after levy passage, but one has since resigned and another firefighter died, leaving that department with fewer personnel too.

Last month, the township announced it would close one of the two outlying fire stations on a rotating basis to control overtime costs. Firefighters being off because they were injured on duty contributed to that department’s overtime, officials have said.

denise_dick@vindy.com