Council hears mixed financial information

DAVE MOSIER/independent editor

Van Wert City Council heard some positive local financial news, coupled with some not so positive state revenue information, during Monday night’s regular meeting in Council Chambers.

City Auditor Martha Balyeat noted that city revenues are up nearly $60,000 in the General Fund this year, compared to 2010, including income tax revenues that have increased $76,000 over last year.

“That’s a very positive sign for us,” Balyeat said of the income tax revenue hike. “We are making some headway over last year … don’t know how long it will hold out, but keep our fingers crossed.”

The auditor also reported that the city is continuing a positive trend from last year in keeping expenditures well below revenues. “I think we need to commend the department heads for keeping expenditures down,” Balyeat noted.

Unfortunately, the emerging state biennial budget doesn’t look nearly as good. The state budget, recently approved by the Ohio House and now in the Senate, includes cuts in several areas, including local government funds, as well as eliminating entirely the estate tax and speeding up the end of a program providing reimbursement for the loss of tangible personal property tax revenues. The budget is supposed to take effect July 1.

Property taxes also don’t look all that positive, the city auditor said, noting that County Auditor Nancy Dixon’s projections on real estate taxes show that residential and industrial property will likely both loss in valuation, while agricultural property will increase in value. Of course, no one is sure just how that will play out.

“I guess that tells us we don’t know where property taxes are going either,” Balyeat noted.

Balyeat said the potential loss to the city from the above sources could be in the neighborhood of $300,000 over the next two years.

The city auditor said budgeting for the next three years would begin soon, with estimates used early on likely needing to be updated as more accurate information comes in from the state.

“This is all a stab in the dark,” she noted, adding, “We need to prepare for the worst case scenario and hope for the best.”

Also Monday, City Council discussed a request for a zoning change from the Van Wert County Agricultural Society for land it owns on the south side of Fox Road and east of the railroad tracks. Council approved the annexation of the land a few months ago.

The Society wants to change the zoning from R-1 (low-density residential) to B-3 (highway-general business) to make the land available for commercial use.

A meeting of the Judiciary and Annexation Committee was scheduled for 7 p.m. Wednesday, May 11, to discuss the request, which was approved by the City Planning Commission. A special meeting of Council will also be held that evening, at 7:15, to seek legislation that would move that process along.

A public hearing is scheduled for 7:15 p.m. Monday, June 13, to obtain public comment on the proposed zoning change.

A second public hearing has been scheduled for 7 p.m. Monday, May 23, to obtain public input on construction of a senior citizens housing project on Westwood Drive.

Legislative action included the passage of measures authorizing several supplemental appropriations and fund transfers, while a then-and-now certificate was also approved by Council members. Council also adopted an ordinance officially naming a street in the Towne Center shopping center North Towne Center Boulevard.

During his report, Safety-Service Director Jay Fleming noted that the boat dock at the reservoir has been repair and installed, and also said that city street crews are currently working on alley improvements.