The Finance Committee of Wellston City Council met Thursday afternoon with Wellston Auditor Tom Baker who updated the committee about the current financial condition of the city and there was little good news.
Committee members are Tony Cox as chairman, Chris Brenner, and Tom Clark and all were in attendance.
"The picture is getting worse because we are getting no help from the people who will get hurt the most in the end. They don't understand," said Baker.
Attempts to get concessions from city employees have been generally unsuccessful.
Baker did say one piece of positive news is the city will receive about $100,000 from an inheritance tax settlement. He said that money can be appropriated and spent, but is not sure spending it immediately is wise even though it would erase about two-thirds of the general fund deficit this year. He said this is a one-time benefit and once the money is gone, it is gone.
He also pointed out three officers and three dispatchers have to be laid off this year to make the cuts necessary to balance the general fund balance. Cox said he was not sure there were the necessary votes on council to make those cuts.
Next year, Baker said, the department might be able to support eight officers and a chief, but no dispatchers. "The dispatchers are gone," said Baker. Money to pay dispatchers, including unemployment payments, will be gone in September.
He also told the committee money in the sewer distribution department is all but gone since three pumps at lift stations are in need of repair at an estimated average cost of $1,200 to $2,000 each. Two of the pumps service the Green Acres Subdivision. It appears problems with the pumps and lift stations are due to a lack of maintenance according to Baker.
He also said in looking ahead, the general fund will take another hit next year since interest on city investments will be reduced. Now, the city receives about $9,000 per month in interest, but next year he feels that will fall to about $6,600 per month. Also mentioned was the drop in real estate property tax collections.
Baker said he had learned the COPS Hiring Grant had been turned down.
Service/Safety Director Mark Jacobs told The Telegram he was not sure the grant was actually turned down, but said a memo he received said some facets of the application had to be reviewed. He said one of the things to be reviewed was fringe benefits which are too high.
Jacobs also said there were a lot of strings attached to the hiring grant and being locked into it was dangerous since the city cannot guarantee it will be able to keep those hired on the job after a three-year period. Council, he said, would have to decide what it wanted to do should the grant ultimately be received.
Committee member Tom Clark asked if the city had salt and Baker said there is money for some supplies such as salt, street patching materials, and "bug dust." He said he did not know why those materials had not been ordered. Committee member Chris Brenner said salt should be purchased now since the cost should be lower this time of year.
