Ironton leaders get ready to focus on finances

Published 12:00 am Friday, January 14, 2005

"It is not looking good."

That was how Ironton Mayor John Elam characterized the 2005 budget Thursday when he asked the city council to call a special meeting to allow more discussion.

As far as Chairman Jim Tordiff is concerned, the figures may get worse if the Ohio Legislature reduces the local government funding that provides the city with nearly $500,000 each year.

"I hope we don't plan for a half a million dollars into the revenue side and then six months down the road have a problem," Tordiff said of the issue that will likely not be decided until summer. "I hope we prepare for this now."

That preparation will begin at 6 p.m. Wednesday in the special meeting that will allow open discussion among council and the audience about the 2005 budget and city's much publicized money problems.

Hurdles include spending as much as $500,000 more than it brings in each year and depleting a carryover that is projected to dip as low as only a few hundred dollars at the end of the year.

"I don't object to audience participation at all," Elam said. "Someone may have an idea that we haven't thought of."

A full budget must be in place by March 31.

The mayor said he will have the latest version of the plan delivered to council on Tuesday to allow them the opportunity to study it before the meeting.

In addition to the potential loss of state funding, the city faces a number of financial hurdles including fixing the spending deficit, generating $150,000 to fund the floodwall program that voters declined to fund in November and drafting and implementing the Environmental Protection Agency’s mandated Combined Sewer Overflow plan that could ultimately cost the city $20 million over the next 20 years.

And those are just the big issues. A depleted workforce, overtime expenses and the massive hole on Railroad Street are other problems that are not going away.

In other business, Council authorized Elam to enter into a revised agreement to sell water to Hecla Water for $3.50 per thousand gallons; about a $1 per thousand less than the average consumer pays. The deal will generate approximately $70,000 per year, at least a portion would be profit above the cost to produce the water.

Under the 1-year contract, Hecla agreed to purchase a maximum of 110,000 gallons per day or 3.4 million gallons per month. The city built a minimum fee into the plan as well. Hecla will pay for a minimum of 1.8 million gallons per month, a total of $6,300, even if they use less.

Once the minimum is exceeded, the company will continue to pay the standard rate.

Another water-related issue was referred to the city's attorneys to be reviewed. Currently, the water bills are assessed to either landlord or tenants, depending on whose name the bill is in. The proposed plan would make the property owner the one ultimately responsible for paying and then assess any delinquent charges to the property taxes.

Council also approved a resolution supporting Ironton Commercial Development LLC, a development group that is working to build $12.5 million hotel and retail project along Park Avenue and Ninth Street.

As proposed, the 7-acre shopping/dining complex includes an 80 to 100-room Hampton Inn as the anchor and several other adjoining restaurants, businesses and shops. Ultimately, the project could create as many 200 new jobs within the community.