Wellsville Village Council Finance Committee

Friday - June 4: The Village Council Finance Committee met this past Friday at Wellsville Village Hall. Present at the meeting was Committee Chairman Tony Cataldo, Committee Members Joe Soldano & John McMahon. Also in attendance was Mayor Joe Surace, Village Administrator Jim Saracco, Fiscal Officer Dale Davis, Councilwoman Susan Haugh and Zoning Administrator Rick Williams. At the meeting the Committee discuss three items - the budget, a request by the Village Animal Control Officer for an increase in gas allowance and three levies coming up for renewal.

Chairman Cataldo stated the Budget's General Fund is "very disturbing". At last week's Council meeting it was reported that the balance for the General Fund was a little over $1,500 at the end of April. That balance improved to $51,690 at the end of May but there are bills to pay. About 90% of the General Fund go to pay wages and health care insurance. Year-to-date the fund shows $205,000 in receipts and $191,000 in expenditures.

Cataldo stated he has been going over ways for the Village to both save and make money saying there are several items passed by Council that haven't been accomplished yet. First on the list was contracting with a Steubenville collection agency to go after back fines owed to the Magistrate Court. Mayor Surace said there is over $100,000 owed in back fines. Several months ago Council agreed to meet with the collection agency and that has never been set up. The agency only takes a fee for fines collected.

The sale of approximately 1/2 acre of land near the Sewage Treatment Plant is still waiting on an appraisal that was ordered months ago. Apparently the company contacted has been avoiding Village officials when calls are made seeking appraisal results. It is unknown if an appraisal has been done or even started. Earlier in the year owners of the Wellsville Terminals approached the Village stating an interest in that piece of unused land. It was decided to get a value on the ground in order to negotiate a selling price. The Committee recommended engaging another appraisal company.

Also outstanding is back fees owned by residents that took part in a sidewalk replacement program dating back to the 1980s. That program was a Community Development Block Grant deal that paid for part of the cost of replacing sidewalks with the owners agreeing to pay a share of that cost. There are still several owners that haven't paid their share to the Village. If ever collected that money can be used for anything since the Village paid all the bills according to Fiscal Officer Dale Davis.

Last year Council made a request to change the Wellsville Municipal Court cases from Lisbon to East Liverpool as a cost saving measure. With the difference in distance the Village would realize savings in gas, mileage reimbursement & the wear and tear on cruisers used by officers required to testify in court. State Sen. Jason Wilson had a joint fact finding hearing earlier this year with all parties concerned. At that time it was agreed to make the move by all concerned. Since then no other word has been forthcoming from our State officials and Wellsville is forced to spend the extra money for fuel it could have been saving.

Harvesting timber on Village owned land is currently being evaluated. A forester has surveyed the old City Dump and is due back this week to recheck what might be available at the old reservoir. With the Governor failing to declare this past winter's heavy snow falls as an emergency there is no money available to make street repairs. The Mayor stated $30,000 to $40,000 was spent for snow removal. As of the end of May the Street Construction Repair fund had a balance of $1,277 and the Permissive License Fee account had a balance of $522. Together that wouldn't pay to have one block repaved. The balance of the STAG funds is still being held up by EPA lawyers in Washington. Wellsville was absolved of any malfeasance in the handling of that grant and still waiting for the over $600,000 to be released. Last year Council approved that the Fiscal Officer apply for a loan to repay funds used two years ago to repair the roof on Village Hall. Word is still being awaited on the original application from one financial institution in town. A second, new application was made to another bank just recently. Word on that second application should be coming any day. Officials in Columbus are still holding up the release of the OMEGA grant awarded for new digester system at the Sewage Treatment Plant.

Fiscal Officer Davis advised the Village is just getting by for day to day expenses but there is nothing extra for any new projects. Davis said it is not needed to consider any lay-offs but there are other ways to save money.

With all that it appears that Animal Control Officer Leslie Dean's request for additional mileage reimbursement comes at a bad time. Dean met in an Executive Session with Council at the last meeting in May. According to the Finance Committee she reported that a total of $2,071 has been spent for gasoline. Dean is given a $50 per month gas allowance since she uses her personal vehicle in performing her duties. That works out to $600 a year. It was unknown if the total amount included mileage for the commute from her residence to town. The Mayor stated he believes County Dog Pound personnel will come to town to pick up animals turned over to them. Animals are only kept for three days in the Village pound. Davis stated any amount over the allowance can be deducted as an expense for income tax purposes. No further action will be taken on the request by the Committee.

Action on three levies will be needed to either get them renewed or replaced was the last item discussed. There are two one-mill levies and a six -mill fire levy that will expire at the end of the year. The taxes will be collected in 2011 at the current rates but voter approval will be needed for that to be continued beyond next year. If a levy is put on the ballot as a renewal the amount collected in real estate taxes will not be changed. If it is put on the ballot as a replacement levy the amount collected will increase according to the latest property evaluations. One of the two one-mill levies is for the General Fund while the other is for the Fire Dept. If approved by Council the levies will appear on this fall's General Election ballot. If voted down then, Council will have four more chances to submit them to the voters before having to spend money on a Special Election. Davis advised the Committee that once put on the ballot as a replacement Council can't go back and change it to a renewal.

Davis also advised the Committee that Wellsville property values have dropped nearly $2 million from 2009 to 2010. As of 2010 Village property values being taxed is $27,327,000 according to County Auditor's figures. Only $1,455 extra would be realized if the one-mill levies are approved as replacements. For the six-mill fire levy the increase would amount to $38,351. That levy is presently bringing in $125,594 which barely covers the ever increasing expenses.

The Committee will recommend that full Council approve putting the one-mill levies on the ballot as renewals and that the six-mill fire levy be replaced. It was agreed that the extra funds on the six-mill levy will be needed to keep the Fire Dept. afloat in 2012 and beyond. At the July Council meeting Council will be asked to authorize the Fiscal Officer to asked the County Auditor for exact figures on all three levies. Since Council has only one regular meeting scheduled in July it is expected a Special meeting will be set up later in the month to authorize the Fiscal Officer to formally request the levies be put on the ballot.

Before adjourning Village Administrator Saracco advised that with last weeks heavy rain storms the "bear trap" on McQueens Run, adjacent to Rt. 39 is severely clogged with debris. The trap is in an a location that Village personnel are not equipped to reach, with machinery available to them. If allowed to remain in the present condition it will cause additional flooding conditions if another heavy down pour takes place. That down pour last week dumped over 3" of rain in a short time causing flooding conditions in many basements. Saracco said the Mayor declared the blocked run an emergency condition and an outside contractor was hired to take care of it.

The very last item covered was to squelch a rumor heard that the Village did not have the money to pay Wellsville's share of a recently awarded grant for upgrading equipment used in the Fire Dept. Both the Committee Chairman & the Fiscal Officer confirmed that is untrue and there is indeed funds available for that. Wellsville's share will be paid out of left over funds collected on an old Fire Levy. That grant is being used to buy new fall-out gear and air tanks.

Wellsville rumors...you gotta love 'em. Next regular scheduled Council meeting is Tuesday, July 6 at 6 P.M.

ole nib