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City has plan to cover financial shortfall
By DAVID SKOLNICK
YOUNGSTOWN
Although the city is on pace to finish the year with a general-fund deficit of $1.5 million to $2 million, officials won’t lay off any employees or sell or lease any of its assets to make up the expected shortfall.
If the shortfall in revenues compared with expenditures happens, city Finance Director David Bozanich said there is a plan.
The city would put money it receives from private businesses for capital- improvement projects in the general fund to balance it and borrow that amount over a longer period of time to pay for the work, he said.
Though Bozanich declined to say what projects are under consideration, he told city council’s finance committee Monday that the Brier Hill industrial site, where V&M Star is building its $650 million expansion project, and the Salt Springs Business Parks are possible locations.
The increased tax revenue the city would receive from this plan would cover the interest on the money the city would borrow, Bozanich said.
The administration will come to city council with a final proposal as to how to balance the general-fund budget by mid-November, he said.
When council approved the 2010 general-fund budget March 31, Mayor Jay Williams said he was counting on an improved economy to increase the projected $41.8 million tax revenue this year by $1 million.
But that hasn’t happened.
Another option was to sell and lease city assets, such as buildings. That option is no longer on the table, Bozanich said.
The finance director said he’s optimistic that next year will be a better one for the city.
About 20 to 25 workers are expected to leave their city jobs next year, including about 11 to 15 high-ranking — and high-paid — members of the police department through a state early-retirement program, Bozanich said.
Because of that, there’s no reason to lay off any of the city’s employees now, he said.
The city has about 750 employees, he said.