By: Health Insurance
Submitted: 2009-12-31 14:34:08 | Word Count: 433
The state auditor's office approved the city's 2010 budget and financial recovery plan The Financial Planning and Supervision Commission -- including city financial officials, acting city manager and council members -- met Wednesday to make sure the city has a balanced budget and 5-year financial forecast to help it exit fiscal emergency by 2014.
By a 4-3 vote, City Council approved both documents Dec. 8.
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In the 99-page Financial Recovery Plan, state auditor representative Belinda Miller discussed objectives for the general fund, department funds, capital projects, utilities enterprise funds and forecasted debt services.
She said there is positive carryover in the water and sewer enterprise funds, thanks to 6.5 percent and 12 percent increases during the next five years.
A commission member voiced concern over water and sewer rate hikes and asked what would happen if businesses leave town because they can't afford the rates.
Miller said the Financial Recovery Plan and rates can be modified accordingly.
If rate hikes are repealed by City Council, water and sewer funds will go into deficit by 2012, and council will have to decrease expenses or make cuts in both budgets.
The storm water fund has six months of carryover after 2014 and only five projects scheduled.
For the Ohio 598 widening project planned for 2012, the city will use grant funds to cover costs. For all other capital projects beyond 2010, the city will need to borrow money for infrastructure improvements.
"If the city needs to repair and upgrade beyond 2014, there will need to be debt to pay for projects," Miller said.
In the airport fund, which is subsidized by the general fund, hours for the manager will be decreased and kept at 2009 levels, Miller said.
In the electric fund, there will be no increases considered in the base rate.
Commission members wondered how the council can cut expenses without eliminating important public services.
City Council already has made cuts in several departments and a 3 percent salary increase and 18 percent increase in health insurance complicates the process, Finance Director Mike Weiland said. The city could not change insurance providers because of union contracts.
The commission will move forward with the financial plan and budget into the new year, knowing that modifications and adjustments may be needed.
