ANALYSIS: BUDGET REBOUNDS, BUT HORNETS STIR Tue, 01/13/2015 - 15:11 Harrison1 BY: JOE AWAD A year after Harrison’s general fund budget hit the stink grass patch, 2014 ended pert near rosy to the surprise of many, and 2015 looks solid. The budget riled some city councilmen when it passed on a tie-breaking vote by Mayor Joel McGuire in December, but the general fund budgeted to end this year with no gains or losses remarkably finished about $415,000 in the black. Business bucks Business property taxes came in much stronger in the fourth quarter than projected. The trend actually started the first quarter last year but no one in city council, the administration or unions were breathing easy. The 2015 version is inked to land about $208,000 in the black at year’s end, but if the economy continues to improve that number also could rise considerably. McGuire initially called the 2015 general budget “solid and safe” but now has taken an ebullient position that the economy, sans the market, is turning the corner. Important to note 2014 began with $6,600 in the GF. Cost reductions that directly impacted the fund topped $200,000. The GF exceeded projections by $290,000, about 9 percent more in tax collections, and a 5 percent hike to the GF. Income tax collections were projected to increase by a modest 4 percent. Nevertheless, McGuire said the 2015 budget is nearly a mirror image of last year’s version. That was judicious budgeting, but the rub, last year, this year, next year, and perhaps for years to come is a whopping $1,722,255 pile of cash called “transfers-out.” This is money taken from the general fund to infuse other funds that don’t make ends meet, and the largest is the fire/EMS fund that diminished the general fund by $1,312,196 last year, and is projected to choke out $1,365,913 this year. All good now? Will that problem now vanish? I doubt it; not in this weird world economy. Things change and the economy could go south again. We live in an incomparable economic age. It’s like this locally: About 80 percent of the money transferred out of the general fund goes to the fire department/EMS. This cash is in addition to about $2 million the department raises through real estate and property taxes, as well as service contracts with surrounding areas. The fire department budget was a prime driver of the 4.8-mill levy attempt to raise $5 million, but voters soundly defeated the proposal in November. Voters resented that passing the levy also would result in shoring up the general fund. That position, however, even with 2014’s surprise ending, is like a dog chasing its tail because the general fund subsidizes the fire department by more than a million bucks, or 42 percent, yearly. That’s a chunk! Keep walking In the long run, the legitimate issues are dicier. 1. The levy is not going away. The city and unions signed an agreement that calls for putting the thing on the ballot twice annually until it passes. The unions did their part in that regard, but workers still want a raise. The city’s approximately 74 union employees assuredly will pressure the city’s administration and council to give them a pay hike. Firefighter have entered their fifth year of a pay freeze. Meanwhile, police officers begin their fifth year without a raise, and police clerks their third. Question: Does the public care? The arrangement between workers and brass postponed battling over wages. The collective bargaining agreement was slated to expire this May but now continues until May 31, 2017, unless the levy passes. Then negotiations would begin within a month. Look for the levy as early as May. 2. It’s no coincidence folks that Harrison cops started writing more tickets last year, which helped bolster income, after the agreement was reached. No one would commit on record that a ticket-writing slowdown was intentional, but a message was sent. The city also raised motor vehicle violation fines. Remember that? 3. How many firefighters/squad members are necessary on an ambulance run? Depends who you ask. The fire chief insists 10 are needed to do the job right. He now primarily works with eight, often including himself, but some city officials believe the job adequately can be done with six. The issue is quality, and maybe life and death. That’s your call Mr., Mrs. and Miss Harrison voter. 4. Harrison Township, Ohio, has a great fire protection/EMS deal subsidized by city residents. Service to township residents is contracted. The deal was struck as part of the Joint Economic Development agreement. Today, however, it is a lousy arrangement for the city, which is washing its hands of the JEDD. So what’s to be done? Somebody must bite off that nasty issue sooner or later. 5. Several voters told me they did not appreciate the levy combined police and fire services. Perhaps voters will see a new approach by splitting the issues: two votes. Could work. 6. Did the city ask for too much? Yes! Homeowners and businesses with property valuation of $100,000 would have paid $168 more in taxes annually; $200,000, $336; $300,000; $504; $400,000, $672. Too much! Was it? Called a “necessity” in an ordinance, city council passed the levy ballot issue 6-0 last summer. Voter approval would have returned Harrison services to the level before the city was hit with drastic budget woes two years ago, particularly a 47 percent hike in health insurance, and dwindling state funds, including elimination of the estate tax. Med insurance went up again last year, this time by about 15 percent. No more immediate layoffs are foreseen, and staffing in the police department might be returned to previous levels, maybe even hiring an assistant police chief. A full-time police officer who retired in 2013, was not replaced, and another full-time officer was laid off. Four part-time police employees also were laid off. The fire department was forced to restructure services using a vast number of part-timers. Thank Obamacare for that. I have no clever ending for this piece. More money takes out a lot of sting but there are a bunch of hornets’ nests still out there, and I already hear 2015 buzzing. That wasn’t bad, after all.
Posted on: Thu, 15 Jan 2015 01:22:00 +0000
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