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Warren expects tax revenue to increase
By Ed Runyan
WARREN
After seeing its tax receipts drop by $2.7 million in 2009 and an additional $450,000 this year, the city believes its revenue problem has “bottomed out,” and tax revenue will instead climb slightly in 2011.
David Griffing, Warren auditor, presented the city administration’s $26 million general-fund 2011 budget proposal to city council’s finance committee Wednesday.
In it, the administration predicts tax revenues will reach $15,765,000 next year, $500,000 more than this year.
Among the reasons for optimism are the establishment of a downtown Warren campus of Eastern Gateway Community College and the start-up of the Tech Belt Energy Innovation Center — a business incubator — on West Market Street downtown, Griffing said.
With only meager hopes for economic improvement, the city isn’t planning many changes, Griffing said.
Police department staffing, now at 61 officers, is likely to remain the same in 2011, Griffing said.
Doug Franklin, safety-service director, said the city’s main hope of getting more officers is to continue to apply for grants.
The city hopes it also will continue to receive assistance from federal and state law-enforcement agencies in the way it has over the past 18 months, Franklin said.
Thirteen additional firefighters will be hired in April or later, adding to the 10 firefighters who were brought back from layoff in October — all thanks to a $5 million federal grant.
Packard Music Hall will increase from 21/2 workers to four once renovations at the hall are complete in January, Griffing said. Packard Music Hall will need the additional manpower in 2011 because it expects to host an increased number of events, Griffing said.
Completion of renovations and increased promotional efforts are reasons for those expectations, Griffing said.
No other staffing increases or decreases are proposed under the spending plan, Griffing said.
The budget calls for a general-fund budget of $26 million — $2.2 million of which will come from recently secured police and fire grants.
The city expects to spend about $24.9 million this year in the general fund (the fund city officials control to provide most city services) and carry over a balance of $1.5 million into 2011.
Finance committee members will begin to study the plan and have meetings in the coming weeks to discuss it, said Al Novak, committee chairman.
The city laid off 20 police officers, 11 firefighters and eight other city employees Jan. 1, 2009, to combat decreased revenue brought on by the 2008 national recession.