City Council makes 2014 budget changes

DAVE MOSIER/independent editor

After several years of using .22-percent Safety Fund money for police and fire salaries and benefits, Van Wert City Council’s Finance Committee members think it’s time to return to using the money for its intended purpose.

Finance Committee Chair Joi Mergy said that the preliminary budget for 2014, which calls for decreased appropriations, were based on a number of factors, including the fact that income tax collections are mostly stagnant, while state funding has been cut and healthcare and operating expenses are expected to increase.

Mergy noted that General Fund appropriations should not exceed $6.2 million, since that is the number that estimated revenues would support. With some “windfall” payments for an Atrazine settlement and an unexpected inheritance tax payment of $192,695 being used this coming year to allow the .22-percent Safety Capital Fund to be used for its intended purpose: the purchase of vehicles and other equipment for the police and fire departments.

However, another windfall inheritance tax payment of $209,756 would not be included in the operating budget, but would be earmarked for some type of capital project.

The new budget also reflects a 5 percent decrease in the amount of money being taken from the .5-percent income tax fund, originally allocated for street improvement projects, to pay for administrative salaries and benefits.

While using street fund money for administrative salaries has been declared legal, since a portion of those positions’ time is spent on street projects, Mergy and other City Council members, as well as City Auditor Martha Balyeat, feel that using the fund for salaries bleeds off money that could be used for street projects.

Balyeat noted that $2.8 million of .5 percent income tax money has been used over the years to pay for administrative salaries and benefits, adding, “that was not the original intent.”

Some Council members also thought more money should go into street projects, since many secondary streets haven’t been redone in some time. Woodland Avenue was cited as an example of a street that needs reconstruction.

City Safety-Service Director Jay Fleming defended the current process, as well as where money from that tax has been allocated in the way of street projects. He also noted that the Woodland Avenue would cost in the neighborhood of $4 million, which would require at least three years of .5-percent money, at the current revenue level of approximately $1.7 million a year.

Fleming also said blacktopping secondary streets doesn’t last, with the street surface “breaking up” after a couple of years of use.

As part of a 2014 temporary budget plan, Mayor Don Farmer’s administration would need to provide a plan to reduce reliance on both the .22-percent Safety Fund and .5-percent Street Capital Fund taxes to fund General Fund expenses in the future.

Also included in budget talks would be the need by the administration to justify future employee raises and to provide a written plan on how such raises would be funded, as well as limiting non-bargaining unit raises to 1.8 percent, while also providing a plan on how to fund those raises.

“My boss is everyone out there paying taxes,” Mergy said, “and I think we owe it to them to watch what we are doing and have a plan for moving forward.”

A temporary budget needs to be passed by December 31.

Also on Monday, Fleming reported that the West Main Street reconstruction project and the railroad spur project at the Jobs Ready Site megasite are moving forward. He also noted that the U.S. 127 bridge should be reopened by this Thursday, although he did note that the U.S. 127/224 intersection would need to be closed for three weeks in the near future so that the railroad crossing can be installed.

City Law Director John Hatcher reported on tax delinquency cases, noting that 28 delinquent taxpayers for 2012 have set up payment plans, while he added that he would now be looking at delinquent taxes from prior years.

Hatcher also reported that the Ohio Third District Court of Appeals will be in Van Wert on October 1 to hear appeals in Van Wert County Common Pleas Court.

First Ward Councilman John Marshall, who chairs Council’s Health Service & Safety Committee, noted that there were 49 city code violations during the period from September 5-11, while a total of 346 violations have been reported so far this year. Marshall also reported that 12 condemned houses have been demolished in the county, with five of those being in the city.