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Campbell addresses its financial crisis



Published: Thu, May 27, 2010 @ 12:05 a.m.

By JEANNE STARMACK

starmack@vindy.com

campbell

Council took some steps at a finance-committee meeting Wednesday to resolve the crisis with this year’s budget.

The steps, some acknowledged, were small. Bill Vansuch, finance committee chairman, urged the other council members to come up with more ideas to cut or curb spending.

A combination of a drop in revenues and some overspending has led to problems in the general fund and the street department.

The general fund is down about $150,000, due some to overspending. But the biggest problem, says city Finance Director Sherman Miles, is that income-tax collections are down $120,000 from what they should be this time of year. An intergovernmental tax, which the city gets from the county, is down $14,200. Miles attributes the revenue drop to the bad economy.

In the street-department fund, $53,000 in overspending has led to a $26,000 deficit. Much of that was for overtime, salt and slag needed as a result of bad winter weather, said city Administrator Lew Jackson.

Council members and Mayor George Krinos said the city can use the state highway fund and the state permissive-tax fund to help the beleaguered street- department fund.

The permissive tax, a $5 license-plate fee assessed by the state, can help to pay for part-time help in the street department this summer, said council member Bryan Tedesco.

Council and Krinos also believe the city can pay for more salt and slag out of the state highway fund for the miles of highways that go through the city because those roads get more use.

Still unresolved is the issue of a recalled firefighter. Krinos recalled the firefighter in January for the city’s understaffed department, but there was no money in the budget to pay for him. Krinos also has a full-time secretary whose $21,000 yearly salary comes from his giving up his health benefits, but he started taking those benefits again in March.

Miles also said there is no money in the budget to hire 10 auxiliary firefighters the fire department wants. Auxiliary firefighters get paid only when they respond to a fire.


Comments

1mrblue(1069 comments)posted 4 years, 7 months ago

You are not going to get a levy passed. I can't see where anything of substance was done at this meeting. What are the mayor and council waiting for? Time is running out for the city. I, for one, do not want to become part of Youngstown. I am not saying it will happen, but it could.

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2mrblue(1069 comments)posted 4 years, 7 months ago

We all know who is pulling Sherman Miles' strings. Who is pulling Mayor Krinos' strings? Where are these compaines that were supposed to come to Campbell? We have been hearing about this since January. What is taking so long? Since the election, Campbell has been one big question mark. HEY LUMPY,, you might be giving them too much credit!

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3kellyg(4 comments)posted 4 years, 7 months ago

Frankly, I don't see much of a recovery coming before the fall deadline. I see unrealistic expectations that won't do much to help in the immediate future. Mayor Krinos has been taking most of the flak and he has made some mistakes, but he did not bring Campbell to the situation it is in right now. There are a lot of unanswered questions: How could the city have allowed tax delinquencies to accumulate to the amount of $227,000.? And will someone explain just what kind of amnesty will be offered to those delinquent taxpayers? The city expects to collect about $45,000 during the amnesty period from August through October. Since the city contracts with RITA for the tax collection, does another collection agency need to be hired? If so, what is that going to cost? Would it be worthwhile? Somebody was not minding the store while all these delinquencies were accumulating. This cannot be blamed on the mayor. Puzzled as to why legal counsel has to be hired for the renegotiation of the BF contract. Is Campbell counsel not able to do that? and at the same time try to collect any city overpayments to BF. I'm concerned about the city but just as concerned, if not more so, is the oil situation in the Gulf. I urge all of you to get involved-call, write, fax-whatever to our elected congress people and the President. This is a catastrophe that will impact our country for many, many years to come. Urge those in charge to become more aggressive in this situation and to hold accountable whoever is to blame. Several days after the explosion the company from Switzerland that owns the drilling platform paid out $1 billion in dividends to its stockholders. This is not a regional problem.

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4onlyincampbell(35 comments)posted 4 years, 7 months ago

kellyg.....The BFI contract was signed back in Dec. I believe. Due to the lack of language in the contract that would allow for adjustments according to actual trash pickups. It is what it is, a set dollar amount. We are stuck with this contract I believe until 2013.

I agree the 5 year plan, at most is speculative and nothing more. There is no mention of cut backs anywhere. There is of course the spending which this mayor is notorious for, go figure!

LOL....I for one applaud Jeanne for her reporting I have yet to hear one false statement in her articles. She reports what is stated at the meetings.So don't critize her for what others say.

As for the Benefits statement the Mayor did not mention a "deal" that is false. He said he would give up his, bottom line. He did after the fact ask that council do the same. There was no mention I'll give up mine IF you give up yours. (refer to the minutes of meetings they are quite detailed)

As for your figures on Rita your off base maybe you should research that figure its actually around 60K a year we pay for tax collections.(hmmm are you the mayor?, hire hire hire!)

And when did the Mayor add lawyer to his repertoire? I myself would not want someone representing the city in the matter of union contracts that does not have the experience or back ground in the legal aspects of union contracts. Will this end up costing the city more because he didn't fully understand something in legal fees?

And lets talk about hiring an attorney, as you stated the city has one so why did Krino's go outside of the city, not to 1 but 2 attorneys to get opinions on starting salaries? He was given that information by OUR Lawyer? Which in return those two lawyers billed the city! And when all this crap went down with Mr. Miles and Odea why did Krinos get a lawyer from Columbus when our own lawyer told him what he could and couldn't do? And you want to crucify Dill? One thing Dill did for the employees seeing tho the money wasn't there for raises, he gave them the best possible health insurance the city could, something Krinos wants to take away, and put in place one thats cheaper for the city but high in deductables for the employees!

Your right its not rocket science. Your wrong on council, if they rubber stamped everything this guy has proposed guess what we wouldnt make it til June. His spending while we are in fiscal emergency shows his lack of understanding finances.

What I truly can not figure out is why there is no mention of collecting on back property taxes. But yet he wants to place a levy on the ballot. I for one will be voting NO I pay my property taxes go after the ones that dont, its always the same ones over and over! Why penalize us?????

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5kellyg(4 comments)posted 4 years, 7 months ago

First of all, I am not trying to "crucify" former Mayor Dill. I have said that mistakes were and are being made by present Mayor. There are proposals of his that i do not agree with. I agree that we should utilize the city attorney as much as possible. I did say that, didn't I? I'm simply looking for answers that as a citizen I have a right to do. The figures for the income taxes came from figures stated in the recovery plan. I believe also that at one of the recent meetings, perhaps it was Sherman Miles that stated that we pay RITA $160,000 a year to collect the income taxes. I question why this delinquency was allowed to accumulate. Seriously, somebody dropped the ball on this. You are absolutely right. The financial burden should not be on the backs of the same people that pay over and over again and meet their obligations and that's why I question the income tax amnesty proposal. What exactly does the mayor and council propose to do? What kind of amnesty? Will it be some kind of payment settlement with balances written off? Or just a payment plan? Is it fair to those who pay their taxes? As for council, they have to accept their share of the blame--maybe more so than Krinos. Like you said, he's been here a short time, but council by and large has been here longer therefore they should have addressed some of these issues in a more proactive and aggressive way. This is in response to the above post by "Only in Campbell." I forgot to address it at the beginning of the post. Finally, personally I fault myself, too for not being more informed and locally politically active in the past. But I have always voted for every levy and supported the city in every way possible and I don't want to see it get unincorporated.

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6onlyincampbell(35 comments)posted 4 years, 7 months ago

Kellyg....I'm so sorry you misunderstood my post it was not directed at you other than the first two paragraphs after that I was answering LOL's post

I dont solely blame Krinos but I do not agree with all this spending and hiring he is doing it is only furthering the financially strapped city and will rapidly lead to its demise

I hope this clears things up. Like you I agree something needs to be done and unfortunetly the time is running out extremely fast!

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7MichaelG93(79 comments)posted 4 years, 7 months ago

Here's what I don't understand about Mayor Krazinos. He tells council that if you give my secretary 26k for the year, I will not take my benefits. Council, hires his secretary, but at 21k. So, he has two options, still see that he has a secretary and foregoes his benefits or act selfishly and keep his secretary and keep his benefits. What did he do to help the city out?????? He kept his benefits!!! What a joke!

LOL, Please don't tell me that you reside in the city of Campbell. Am I the only one that reads these posts that sees LOL's math is absolutely wrong???? Get a load of LOL's post above, $35 plus $15 = $60. It's crazy, but every time I do that math is equals $50. I hope you're not part of the finance committee. We would really be in trouble!

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8Billybob21(96 comments)posted 4 years, 7 months ago

LOL why u always have to bring up sherman i think he does a pretty good job. All those idea are to save the city and they city cant afford anything. If you would have been at the meetings from the state you would have heard the problems the city face's. Yea noone wants to see the city lose police or fire but it might be what we have to do to save ourselves and get out of the whole krino's is creating.
And i was against selling the water plant before but the more i hear campbell residents talk about how high there water bills are and how there bills are always changing i think that might be a good idea. There bills are high and you cant even drink the water what a shame.

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9onlyincampbell(35 comments)posted 4 years, 7 months ago

LOL.....I think the only soap opera being written, is here, in these posts by a few Krinos suppporters!

My statements that you point out above do not contradict each other. Anyone with half a brain knows the city lawyer can not represent both parties in the matter of Krino vs Miles. With that being said, and not what I was referring to, Krino's did not take the advise of the city lawyer and did hire two other lawyers in regard to the starting salary. He also did seek an outside lawyer after the city lawyer told him Mr. Miles could sign the payroll checks which at that time he agreed to let me him sign them so the employees would not disenfranchised, then the next day he said he did not agree. And did not allow it.

In regards to the insurance:
You stated and I quote...
"The city will load a credit card with something like $5,000 per employee." by my rough calculations of approx. 60-65 employees that would add up to $325,000 right from the start. Um yeah where is that kind of money going to come from in a lump payment?

Maybe I have posted some things on here that I failed to do enough research on, I will admit it, I'm human, but for the most part I have not posted without 1st doing my homework. I don't veiw your remarks as being snide at all, just misguided and misinformed.

Now for your closing comment in regards to Mr. Miles:
Your 1st 2 items I have to say, the way things are going it could be a very good possiblity, we may have to go that route.If thats what we have to do to save the city do it!
Number 3 is beyond funny. Juanita is a good friend of his, she would absolutly kill him for trying that one, after her and Dinese, Laura, Flora and others fought so hard to keep it! Oh and funny enough I haven't heard any proposals brought up in council meeting for this, which it would have to be voted on and discussed there.

Nice try on that one....sounds like Chubby Checker is in town as the mayors new theme song writter. You know the "Twist" you sure put a twist on things.

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10MichaelG93(79 comments)posted 4 years, 7 months ago

LOL,

No one on council said they would give up their benefits, only Krazinos did when he asked to get his secretary. He gets his secretary, and keeps his benefits. He kept them out of spite because his secretary didn't receive her 26k but got 21k. He said on the radio that he would stop his benefits if it helped the city. He explained what happened and at the end he said he would stop benefits. WTF is he waiting for. Again, promises that he won't keep!!! Instead of drinking at the Rooster all night he should be thinking of ways to fix the city!

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11Billybob21(96 comments)posted 4 years, 7 months ago

Well, maybe if the chief, mayor and everyone would quit locking Sherman out of his office and city hall, maybe he could work on the city finances. Not to mention, pay the bills. And the city is trying to climb out of the hole. Everytime we try to climb out of it, mayor Krinos keeps pulling the ladder from under us with all his spending. The state said "NO" and NO MEANS NO MORE SPENDING. And now the mayor wants to bring on auxillary fireman and spend spend spend. What part of no doesn't he understand? I guess he is use to getting everything he ever wanted and doesn't know the meaning of NO. As for the whole voulunteer firefighter thing, it is pretty much what Campbell already has. We only have 1 most of the time, sometimes 2 firemen at the station so whenever all the fireman get there they have to drive to the station. Wow....imagine that. And Campbell isn't that big. I am sure deputies will learn the area, maybe they can even be fazed in. Maybe we could just cut the police to part-time and get assistance from the sheriiff. And, onlyincampbell and michaelg, you have it right; I think LOL needs to do some research before he talks.

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