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Council approves next year's budget

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by Amanda Harnocz

Reporter

Tallmadge -- City Council approved the 2010 budget Dec. 17, which includes cuts in every department due to an anticipated 8 percent drop in income tax collections as compared to 2009.

"The budget is very lean and may require adjustments as 2010 unfolds," Director of Administration Dr. Tom Pascarella said. "We all hope that some form of stabilization will occur and that our estimated decline in revenues will prove to be incorrect."

Council approved the $11.5 million budget, which Mayor Christopher Grimm called "conservative," following a public hearing.

The 2009 budget was $13.3 million, but was cut by $500,000 mid-year when the road program was eliminated, said Grimm.

The 2010 budget decreases can be attributed mostly to lower income tax collections, said Grimm. The city is expected to end the year with $7.3 million in income tax collections -- a number that is off the mark from the $8.3 million estimate made during the 2009 budget's planning.

And the administration believes income tax collections will be even less next year, expecting to receive about $6.7 in collections by the end of 2010.

Because of the expected decrease, the city offered a voluntary buyout program (which six employees took), mandatory cuts in every department's budget, will offer no pay raises for all union and non-union staff and ordered employees to contribute to health care now, said Grimm. Employees currently do not pay for health care.

Passcarella said the citywide pay freeze will save about $240,000 and contributions to health care -- $30 for a family, $20 for a couple and $10 for single coverage per pay period -- will create about $56,000 in new revenue.

Grimm said all but the full-time firefighter's union have agreed to contracts which include the pay freezes and added health care costs.

Grimm said a disagreement between the city and the firefighter's union is based on a non-monetary issue, and he expects to negotiate through the beginning of the New Year with the full-time firefighter's union. (See related story page XX?)

The six city employees who took the buyout -- including Police Chief Mike Duvall, Police Sgt. Mark Trundle and Community Developer Pat Sauner -- will retire and save the city approximately $80,000, a savings that won't be realized until 2011, according to Finance Director Jill Stritch.

Grimm said not all of the buyout positions would be filled, and some would only be filled with part-time employees.

Employees are not the only ones to see cuts in 2010. "We've decreased the budgets in every department," Grimm said.

The city's most expensive department, the police department, is down $1 million from last year. About $3.39 million is budgeted for the department this year, said Passcarella.

The fire department, the city's second largest budget, is down $180,000 from last year and will cost $2.57 million to operate in 2010, he said.

The recreation center will see a $200,000 decrease in funding and will cost about $1.23 million to operate in 2010.

Grimm explained capital items are few for 2010, and two of the largest projects are being fully funded by federal stimulus money.

The larger shovel-ready projects for 2010 -- the roundabout at six corners and the new shooting range -- are completely paid for by government monies, said Passcarella.

The largest capital item planned for 2010 is to reinstate the street maintenance and repair program which was eliminated in 2009. Public Service Director Dave Kline previously said the item would be more costly if the city waits another year to work on roads.

E-mail: aharnocz@recordpub.com

Phone: 330-686-3911