Village Council Finance Committee

Thursday - December 3: The Wellsville Village Council Finance Committee met at Village Hall yesterday. Present at the meeting was Committee Chairman Tony Cataldo and Committee member Randy Allmon. Also present was Council members Don Brown, Joe Soldano, Councilwoman-elect Susan Haugh, Mayor Joe Surace, Village Administrator Jim Saracco, Fiscal Officer Dale Davis and Zoning Administrator Rick Williams.

Cataldo started the meeting reporting that the General Fund has $23,000 as of December 2. Total funds on-hand is $646,953. Fiscal Officer Davis advised the biggest portion of the total is in the Sewage Dept. enterprise fund. By ordinance it can only be used for operation of the sewage system, up-grading or rehabilitating the village system.

Caltaldo reported that revenue receipts for the year is behind 2008 figures. Davis advised much of that is due to the economy with lay-offs and foreclosures. Davis also warned that current estimates for 2010 appear to be even worse. Councilman Allmon then asked "shouldn't we be preparing for that now?" Cataldo stated "there's going to be cuts". Davis advised that the biggest expense out of the General Fund is for wages & benefits and that is about all that is being paid for at this time. Continuing being frugal with expenses should carry Village funds for at least the next three or four months. Davis declared he will the first to "cry wolf" if the financial situation worsens.

Cataldo went on to state it has been decided not to replace any firemen until at least March, 2010. Wages for firemen salaries are not retroactive from the pending FEMA SAFER Grant that Fire Chief Smith is applying for. If the Village is awarded with that grant it will pay wages & benefits for additional fire fighters on a five year gradual declining scale. For the first year the grant will pay 90% of those wages & benefits. The Village would have to commit to completely pay for the fifth year. The deadline for putting that application in is December 18. It would be sometime early next year before any word would be expected.

Discussion then moved on about different ways to possibly bring more money in for Village coffers. Mayor Surace asked if money from the Sewage Fund could be borrowed for other expenses. Davis replied that the ordinance for that money states 55% of that money is ear marked for sewage plant operations and 45% for up-grades and maintenance. He also reminded everyone that if the appeal for the remaining funds in the STAG grant is favorably approved for the Highland Avenue project a big chunk of the Sewage Fund will be used to finished that job.

Davis stated one problem causing the declining income is the arbitrary decision by the Port Authority to break down their payments to the Village for land leased at the Intermodal Park. The Port was given a 99 year lease for that land for a total of $100,000. Payment was to made yearly in lump sums of $33,000 each the first two years and $34,000 for the third. This is the last year for that payment schedule. Davis said that officials at the Port started making $2,100 monthly payments instead of the one lump sum payment as agreed upon. Noting that the change in payments never came before Council the Mayor agreed to get in contact with them for an explanation.

The Fiscal Officer went on to state that even though he is himself a Village employee and enjoys his perks as much as anyone it is advisable to seriously look into having employees pay a cost of health insurance coverage. Allmon stated rising health insurance costs are affecting every company across the country. Davis said that even a modest employee co-pay would be a tremendous help.

Davis also advised another issue needed to be addressed by Village officials is what to do with delinquent income tax payers. The Village years ago imposed a 1% wage income tax. Although no exact figures were available yesterday there is money owed by people who have filed the tax forms but have not paid their tax. Davis said the Audit Committee needs directions on how to proceed pursuing those individuals. One decision needed is whether to cite the offenders into Municipal or Magistrate Court. RITA sends out reminders to late payers but needs Village authorization to do anymore than that. Davis said that in the past deals have been offered for delinquent tax payers to settle up without any late fees. Those "one day round ups" have averaged $20,000 - $30,000 in the past. It was decided to meet with the Village Magistrate before making any decisions on that matter.

There were two other sources of possible income mentioned by Cataldo that is being considered. One is the harvesting of trees from Village property. A forester from Dover, Ohio, is coming to do an assessment before moving forward on that. Profits from a sale of trees at the old reservoir a few years ago got the village out of fiscal emergency. State Auditors used that as an innovative example for other communities to make money.

The other idea Cataldo brought up is the selling of mineral rights on Village owned property. Many communities have agreements with companies to drill for natural gas on their lands.

Going after people that have defaulted on repayments for low interest CDBG home improvement loans was brought up. Soldano advised that program goes back to the early 1990s when Village home owners were offered the loans. There is some $38,000 owed the Village from that program. Davis stated for some reason people just quit making payments. Liens are placed on mortgages but so far it has only effected one person who was trying to sell her house. It cost her $9,700 in additional fees to sell the house.

The loan application for a bank loan for $275,000 should be approved by the end of the year. It is now going through bond counseling. Council voted to borrow that amount to repay funds that were used to pay for Village Hall roof repairs.

All in all it was agreed that "something" has to be done. No one wants to get into another fiscal emergency. Davis warned phones will be ringing off the hooks when Council decides to go after any delinquent tax payers. It happened when they started going after people refusing to pay their fines or sewage bills.

ole nib