Thursday, August 19, 2010
By jeanne starmack
campbell
Campbell not only lacks money, it lacks a sense of urgency about its financial crisis, says the chairman of a state panel guiding it through fiscal emergency.
Paul Marshall, oversight- commission chairman, said Wednesday at the commission’s meeting that he’s grateful the state auditor’s office helped prepare a plan that keeps the city from shutting down by year’s end. The state attorney general’s office had ordered that plan on behalf of the commission, and the city was supposed to complete it by Monday.
It was completed at a meeting a week ago with help not only from state auditors but from Marshall as well.
“I appreciate the auditor’s assistance, but that does not absolve the city of responsibility,” he said.
Marshall said it bothers him that it took an order to get action, then it took several weeks for the city to move on the order.
“That’s a problem,” he said.
Marshall also said the new plan doesn’t mean the city won’t be in trouble next year. He ordered city officials to revise a five-year financial forecast it must have while in fiscal emergency. The revision must show how to deal with lagging revenue.
Mayor George Krinos pointed out that businesses are planning to move in, and the city might pass a 3.5-mill levy in November that would generate more revenue.
“What if these things don’t happen?” Marshall replied, adding that the city needs to present options in the forecast in case they don’t.
“This city has been in fiscal emergency for a long time,” he added. Campbell has had the status since 2004.
This year has been a difficult one for the city, with council and administrators having to redo the budget to eliminate a $463,000 deficit.
Spending then began to outpace revenue in some departments, including the street and fire departments and the mayor’s office.
But the biggest blow came when income-tax revenues fell short. They were $110,000 behind where they should be for the year by the end of July, Tim Lintner, a financial supervisor from the state auditor’s office, said Wednesday.
Marshall said in the spring that the city was in danger of shutting down by November because it would be out of money. He has said he will not let the city spend while it has a budget deficit.
Marshall said the new plan is “mostly accounting changes.”
The changes shift some general fund expenses to other funds, and Marshall said that can’t happen again because the money won’t be there next time.
The largest chunk of money spared from other funds is $87,000 from the recycling fund. Rich DeLuca, the city’s stormwater management consultant, told the commission that at least part of that money will be needed for a new road-salt bin. The Ohio Environmental Protection Agency will mandate it, he said.
Juanita Rich, on the commission for city council, said the council also has concerns.
“We have issues and real concerns with depleting funds to get us through,” she said.
She said council will discuss amendments to the budget changes, and those amendments would be presented at the commission’s next meeting Sept. 20. The new budget plan isn’t final until council approves it.
Chris Grachanin, a commission member who represents city residents, said she is unhappy with the new plan because it sends the wrong message to Krinos.
“There’s no consequences for the mayor, and it gives him a pat on the back for putting this city in further debt and shows him he can do what he wants,” she said.
Krinos recalled a laid-off firefighter though council did not allocate money to pay him, and took his health benefits after saying he would forfeit them to pay for a full-time secretary in his office.
Marshall said the budget changes allocate money for the firefighter and the benefits.