City preps for budget cuts

By Ed Richter
Staff Writer 11:39 PM Thursday, April 23, 2009

Middletown City Council’s Finance Subcommittee met Thursday, April 23, to review the city’s budget and look at ways to cut it by $704,000.

The city is projecting a budget shortfall of between $750,000 and $1 million for the general fund that pays for city operations and services.

City Manager Judy Gilleland asked department heads for suggestions to cut 2 percent or $574,379 of their budgets, which are part of the $29.9 million general fund.

She received suggestions for 2.4 percent in cuts that included buying fewer police cruisers; not filling several vacant positions; and reducing overtime, professional services, supplies and capital equipment purchases.

Gilleland said she did not feel any decisions had to be made yet as the city will know more in mid-May how it fared in its income tax collections. Personal tax returns were due April 15, but quarterly income tax payments are due on April 30. She also suggested another meeting May 13 before making a final recommendation.

Finance Director Russ Carolus said property taxes for the 2009 first half settlement are down in Butler and Warren counties, at $28,525 and $106,000, respectively.

The city also learned April 22 that construction of the proposed SunCoke plant may not begin until early 2010.

Other suggestions to raise revenues included charging residents to cover the $578,976 cost each year for street lighting; and generating $240,000 by reducing the income tax credit by 0.25 percent for residents who don’t work in the city.

A suggestion to raise the city’s income tax by 0.25 percent to 2 percent to raise $3 million was briefly mentioned, but not discussed.

The topic of dipping into the city’s reserve fund of $7.19 million was broached but members seemed to want to find other cuts first .

Charging for street lighting? Isn't this a double taxation, I thought they pay the lighting bill  with money that we are already taxed on.

You speak the truth Pacman!

Ok Spider you lost me or I don't get the Joke.

  http://www.opm.gov/insure/health/rates/nonpostalhmo2009.pdf - http://www.opm.gov/insure/health/rates/nonpostalhmo2009.pdf

http://www.cityofmiddletown.org/docs/council/632008_m.pdf - http://www.cityofmiddletown.org/docs/council/632008_m.pdf

Health Insurance Update – Sara Mills, Asst. Law Director stated they

have taken a look at first quarter data and the figures look on tract. The

committee has been talking about putting health care plan out for proposal and

they are hoping to get a better price through RFP’s. The prescription process

should show significant savings. The City went through a somewhat painful

process to verify all insured and about 72 persons came off the program.

Some dependents were being claimed, some children that had exceeded the age of 23 and the employees weren’t aware that children needed to come off.

They will continue to do spot auditing. Mrs. Mills stated a data base was

created with the first audit and employees with children were flagged. It was a

real positive thing to get the audit done. They are estimating savings at

$100,000 up front plus a long term savings. These are continuing efforts on

ways to control health care cost, health reimbursement account, and spousal

coverage issues. Middletown has a very successful wellness program as well

as an educational piece to help reduce health risks. They foresee coming back

after they receive all the first half of year figures.

http://www.cityofmiddletown.org/docs/council/342008_w.pdf - http://www.cityofmiddletown.org/docs/council/342008_w.pdf