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V&M’s check gives Girard a boost
By ed runyan
YOUNGSTOWN
The cities of Youngstown and Girard received additional income-tax revenue in 2010 as a result of increased production at V&M Star’s existing mill, and look forward to increased revenue in 2011 as construction of its new mill ramps up.
Kyle L. Miasek, Youngstown deputy finance director, told the city Finance Committee on Thursday that Girard received a check this week for $58,000 as its share of the plant’s 2010 income-tax witholdings.
Under the agreement between Youngstown and Girard that governs revenue sharing between the two cities, Girard started receiving 50 percent of all V&M income-tax revenue in excess of $1 million in 2010, Miasek said.
It’s the first year Girard has received a part of V&M’s income-tax witholdings. V&M’s existing mill is in Youngstown. The mill expansion is on land annexed to Youngstown from Girard.
Girard Mayor James Melfi said the $58,000 check, which arrived Wednesday, came at a good time for the city.
“Obviously, this time of year, cities can’t get enough money,” he said.
The money will go into the city’s general fund for routine city expenses.
“Our income tax is way down from $3.2 million to $2.8 million this year. It’s a significant drop,” Melfi said. “We run a very lean operation.”
Youngstown also saw an increase in V&M income-tax revenue of “a few hundred thousand dollars” this year as a result of the good year V&M had, Miasek said.
Giving exact revenue figures would not be beneficial to V&M, Miasek noted.
The agreement also gives Girard 55 percent of all income-tax witholdings from construction workers putting up the new mill, just south of the existing mill.
So far, Girard has received two payments totaling $6,650, Miasek said. Youngstown received about $5,400.
Those revenues will significantly increase in 2011, as the construction progresses, Miasek noted.
“For 12 to 18 months, we’ll be in the construction phase,” Youngstown Mayor Jay Williams told the Finance Committee on Thursday.
The year after that, 2012, is likely to provide Youngstown with an even bigger boost, as production at the new mill begins, Williams said.