With only 17 days remaining before Ironton's finalized 2003 budget must be adopted, Councilman Jim Tordiff made a presentation at Thursday's meeting that illustrated the dire situation the city could be in two years, based on his projections.

Council has already conducted two budget workshops and plans to have a few more as the deadline approaches. Tordiff said he made the presentation to show Council and the public that the city may be in trouble if current trends continue.

"My presentation is not to say we are overspending or that I disagree with the administration's budget. The mayor has done a good job with what he has to work with," he said. "What I am saying this evening is not critical of anybody. I just think it is time for us to recognize that we have a financial problem and I hope the public understands that."

According to the figures presented by Tordiff on four poster-sized displays, the city spent $53,244 more than it generated in 2002, ending with a carryover balance of $836,980.

Based on the proposed budget, the city will spend $299,472 more than it generates in 2003, bringing the carryover to $537,508.

Tordiff then projected the expected expenditures and revenues through 2005. His figures show that the city may spend $802,805 more than its yearly revenue in 2004, taking the year-end balance more than $250,000 into the negative. Based on Ohio law, cities cannot end the fiscal year in a deficit and must pay daily fines.

By 2005, his projections showed that the city would have a deficit of more than $1.1 million. Tordiff said his projections did not include any salary increase and did not account for inflation.

"I want to make my position clear," Tordiff said. "I will not vote for a measure with a wage increase, not because they do not deserve it because they more than deserve it, but because we have an obligation to create a budget for this year that will be solvent but will be solvent for many years."

He also projected that expenditures from Street and Health funds could require an additional $176,000 from the general fund. Without a tax increase or another form of new revenue, Ironton residents could see a reduction in services in coming years, Tordiff said.

After the meeting, Mayor Bob Cleary said Tordiff's figures are an accurate projection of the city's finances if the city did not see any growth or unexpected revenues during the next two years.

"The numbers show what could happen in a worst-case scenario. It could happen, but it is only projection," Cleary said. "We have seen numbers that bad in the past, but through being cautious in our spending and making some cuts in the budget, we were able to continue all city services."

"As Mayor working with Council, I think we need to be proactive and be cautious with our spending like we have in past years so we can move forward with the same attitude and continue to promote economic growth."

Any finalized budget will have to be flexible and the city can make adjustments as needed throughout the year, he said.

In other business, Council:

4Adopted an ordinance to allow Cleary to purchase construction materials such as gravel and concrete for the 2003 year.

4Approved a motion to reappoint Ironton resident Charles R. Rice to the Civil Service Committee after he has served for the past 18 years.

4Entered into an executive session for more than an hour and a half to discuss personnel, contract negotiations and lease agreements. Council invited Cleary, City Finance Director Cindy Anderson, Public Services Director John McCabe and Pat Clonch, executive director of the Lawrence County Chamber of Commerce and the Lawrence Economic Development Corporation.