Ironton will be $500,000 short on operating revenue as the city’s fiscal year comes to a close, members of the Ironton City Council Finance committee found out Wednesday.

Thursday, August 31, 2000

Ironton will be $500,000 short on operating revenue as the city’s fiscal year comes to a close, members of the Ironton City Council Finance committee found out Wednesday.

City finance director Cindy Anderson recently prepared a projection for committee members to show a comparison of the current expenditures versus changes that should be made to balance the budget by year-end.

"Right now, we’re down roughly $165,000 on our income tax revenue from last year," Mrs. Anderson told council members. "That’s the start of the problem."

She also directed the committee’s attention to a reduction in other revenues as a direct result of recent job losses.

Council chairman Jim Tordiff said that the budget was falling short of the required funds needed to effectively operate the city at the current level of services provided.

"Right now, we project to spend about half a million more than we can bring in in just the general fund for the year 2000," Tordiff said. "Expenses to operate continually go up and the revenue continually goes back. We’re not able to continue operating in this manner."

He said city council members will soon hear some ideas on how to deal with the budget concerns.

"We are looking at proposing a way to meet our budget requirements by the year-end," he said. "We do have money from a one-time Worker’s Comp rebate the state refunded us last year and we have $121,000 from the property sale at McPherson and Orchard streets. Using that money will take care of this year’s problem, but what about next year?"

Tordiff said the two "one-time" sources of money could be used in addition to unused funds that were carried over from last year as a way to balance this year’s budget.

Councilman Jesse Roberts said he feels it is time to look at ways to increase city revenue.

"We’ve come to the crossroads as a city," Roberts said. "I think it’s time for everybody to come together on what it takes to increase revenue or it’s time for city services to diminish drastically. We can’t operate a bankrupt city. We will not allow that to happen."

Councilman Leo Ulery agrees with Roberts.

"We cannot continue to give the same level of service now or in the future at the present revenue," he said. "Something needs to be done."

Committee members suggested council should begin arranging public meetings to allow residents a chance to see the city’s revenue as compared to its expenses.

Allowing residents to view the budget and then to recommend a way to increase revenue, could allow the city to continue operating and possibly offer other needed services in the future, Roberts said.

"The public needs to understand that we don’t have the general fund revenue we once had," Tordiff said. "It’s time for the citizens to understand why we don’t have money. We’re only operating on a 1 percent income tax budget. Do I propose raising taxes? No. I think the public needs to tell us what level of services they want and are willing to pay for."

He said members of the committee are realizing that a serious financial burden could exist in the near future under current conditions.

"I think all of council realizes that we’re in this situation," he said. "We know there’s a problem coming in the future. That’s why we’re looking at it now. We have a responsibility to take over the problem before it happens and the key is communication with the public."