Council discusses city’s financial situation

DAVE MOSIER/independent editor

Van Wert officials discussed the city’s financial position, while Mayor Ken Markward honored the Division IV state champion Van Wert High School football team with a proclamation during Monday’s Van Wert City Council meeting.

City Auditor Martha Balyeat noted that, with income tax revenues down 3.5 percent (nearly 8 percent down from 2019 projections that estimated a 4 percent increase in revenues) because of the COVID-19 pandemic, the city is hurting, but the receipt of several hundred thousand dollars in CARES Act funding will help the bottom line — especially since the requirements were loosened on those funds to allow the city to use them for salaries, as well as other expenses. 

In addition, the city will again use money from the .22-percent Safety Capital Income Tax to make up the shortfall in revenues, which Balyeat calls “robbing Peter to pay Paul”, since the need to spend the money on police and fire salaries and benefits takes that money away from its originally intended use of purchasing new equipment for the police and fire departments.

Moreover, using the .22 tax money includes a moratorium on city hiring if the police and fire departments are under their minimum staffing levels. Although city officials see a need for another Parks Department employee, as well as a code enforcement position, those positions will remain unfilled until the city can meet its budget without using .22 tax money.

Council President Jon Tomlinson noted that, barring the addition of “a large new employer or lots of jobs” from smaller businesses or existing companies, revenues will continue to fall short of the city’s needs, forcing the city to use .22-tax money to make ends meet.

Tomlinson credited city department heads and employees with keeping costs down to allow the city to meet its budget, adding that, other than inflation-based wage increases, the city budget hasn’t increased in at least five years. 

Fourth Ward Councilman Andrew Davis said he felt the city should look at putting an income tax increase on the ballot, but others noted the resounding defeat of a similar measure during former mayor Jerry Mazur’s tenure means a new tax issue would be unlikely to succeed — especially with wages still down from the coronavirus shutdown earlier in the year.

Davis also suggested that Council look at putting the charter government issue on the ballot again in May, but no action was taken by the five Council members present (Council members Jeff Agler and Bill Marshall were absent from the meeting, and excused).

During the comments, communications, and petitions portion of the meeting, Mayor Markward presented VWHS Head Football Coach Keith Recker with a proclamation honoring the team for winning the Division IV state championship (click here for the text of the resolution).

Safety-Service Director Jay Fleming requested that a pending Public Works Board measure be amended to extend his term on that board to three years, while also adding the mayor as an alternate to serving on the board. Fleming also requested that the salary ordinances be amended to give non-bargaining unit employees the same 3-percent raise as those in the police and fire bargaining units, which was approved.

The safety-service director also asked for an amendment to add a “construction maintenance” designation to the Parks Department to give an employee there a small promotion based on his operation of bigger equipment for that department.

Fleming also requested that, because of access problems for trash haulers and other vehicles, parking be banned on the west side of Middle Street, from Moberly to Cable streets. Signage will go up soon for that change, he said, but there will be a grace period following passage of the ordinance so that people can adjust to the parking ban.

Economic Development Committee Chair Jeff Kallas noted that the Home Guard Temple building is now down, with clean-up on target to be completed by January 16, 2021. He also noted that 15 businesses with fewer than 25 employees applied for coronavirus-related grants, with the possibility more money could become available for that program if other counties don’t use their full allotment of funds.

Kallas also noted that the Neighborhood Initiative Program, which provides funding to demolish blighted houses and commercial buildings, will end in May 2021. The local Van Wert Area Land Acquisition Corporation (land bank) has acquired approximately 80 properties through that program, of which nine are being used currently.

In other action, Council approved a then-and-now certificate totaling $5,581 to Lexipol for the creation of a fire policy manual, while also preparing financial ordinances for the typical end-of-year fund transfers and supplemental appropriations.

Council also approved an ordinance allowing the city to apply for the Ohio Department of Transportation’s transportation funding program, and also appointed Joan Stripe and Gary Taylor as the city’s representatives on the Brumback Library Board of Trustees.

The next meeting of Van Wert City Council will be at 6:30 p.m. Monday, December 28, in Council Chambers on the second floor of the Municipal Building, 515 E. Main St.