2004 Review
The economy and financial issues dominated much of 2004 and promise to be the central focus of 2005.  Although the budget for 2004 was $100,000 less than 2003, was based on a conservative estimate of receipts and health care cost containment efforts were implemented, health care costs continued to erode our financial condition.  Costs were contained, but are still far too high in light of resources available and the lack of substantial revenue growth.  Income tax receipts, although slightly higher than estimated, were lower than the previous year for the first time in many years.  Since they comprise approximately 70% of general fund receipts, the decline had significant impact.  As reported to Council previously, the decline was nearly all due to decreased business profit filings in December. Filings of withholdings were actually up for the year.  Hopefully, that will continue in 2005 and business profit filings will rebound.     

On a positive note, we were able to address a number of improvement, capital equipment, and community/economic development needs, most through the creative use of funding from others sources. 

Street improvements were made utilizing CDBG/RLF program income and the 2003 CDBG formula grant.  The annual Street Crack Sealing Program was implemented, a dump truck replaced in the Street Department and the drainage problem on Garfield St. were addressed using Permissive Auto License revenue. 

Improvements to the exhaust systems at the fire stations and equipment improvements were made as a result of grants obtained by the Fire Chief.  Technology/equipment improvements were made in the Police Department through the use of funds from the Federal Forfeiture Fund, obtained as a result of our participation on the Drug Task Force.

The Phase II Environmental Assessment of the former coke works site was completed with Clean Ohio Assistance Fund resources.

Funding was obtained from the Ohio Public Works Commission and Mahoning County Local Development Program to address storm water improvements in the SR 616/Lakeshore area in cooperation with Poland Township .

Two substandard dwelling structures were demolished utilizing CDBG/RLF funds.

OPWC provided 69% of the funds to implement the Trickling Filter Media/Rotor Replacement project at the WWTP. 

The total amount for these activities amounted to approximately $1.1 million dollars. The General Fund provided approximately $12,000 and SDO provided approximately $71,000.00.

Among the projects funded with local funds included:

• The repainting of the exterior and various interior areas of the city building, concrete repairs to the City Building and the N.S. Fire Station driveway, and replacement of the upper N.S. Fire Station roof. 
• Ceiling and lighting improvements to the city building common areas.
• Various drainage projects were addressed in the city and a laser mower was purchased for the park.
• The total amount of local funds for these improvements amounted to approximately $30,000.

Other Related Developments in 2004

• Ground was broken for construction of the Walton Avenue Bridge .
• It would appear we have resolved matters regarding acquiring the former Youngstown Sheet and Tube Office acquisition.
• An OEPA low interest loan application to improve our septage receiving facility has been completed. It is anticipated improvements will be constructed in 2005.
• In conjunction with the Clean Ohio Fund, CASTLO completed remediation of a 45 acre site for future development and implemented Phase II Environmental Assessments on portions of an additional 80 acres in conjunction with a Federal Brownfield Grant.
• Over the past two years, seven additional tenants have been added to the CASTLO Industrial Park and in 2004 at least five other businesses have joined the community.  Unfortunately, a long time business, also, left the community.
• Habitat for Humanity began construction on four additional single family dwelling units.
• Acquired eight parcels in the Land Bank.

Looking Ahead in 2005

The year ahead is full of uncertainties and “ifs”.

In the face of current and potential financial challenges and issues maintaining city services and operations, especially those dependant on General Fund revenue, will be a primary concern in 2005. 

Among the challenges are; further reducing health care costs, identifying and implementing additional cost containment practices, protecting current funding sources from state and federal cuts, and continuing to aggressively pursue infrastructure improvements that lead to sustainable economic development.  

The most immediate challenge is to adequately address the health care program as soon as possible.  A review of the current status of the program indicates further changes will be required in light of the resources available. The health care cost containment committee is working hard to identify the best and most equitable way to address the issue.  Hopefully, that can be done by April.   I appreciate the time and energy they have committed in trying to resolve this difficult issue.  Much depends on if we can address the issue satisfactorily.

A second area of major concern is the possible reduction or elimination of other general fund sources of revenue.  In addition to Ohio Local Government Funds, which are being addressed on tonight’s agenda, the Bush administration is expected to propose a major change/reduction in the federal Community Block Grant Program.  A reduction in any of these programs would severely impact the community.

The completion of the Walton Avenue Bridge and securing additional corridor infrastructure improvements is underway.  Our current application for Ohio Public Works Commission assistance, if approved, will extend an improved Bob Cene Way and $3,000,000 is still pending in the federal transportation bill for other MRCO infrastructure improvements. In addition, the MRCO Planning Committee will be pursuing State 629 funding and the possibility of an Industrial Site Improvement Fund grant to address infrastructure improvements.

The environmental remediation of the former coke works site with the assistance of the Clean Ohio Assistance Fund.  The application is near completion and, hopefully, approval and clean up activities will begin in the second half of 2005. 

The marketing and redevelopment of acquired property for residential and commercial/industrial development.  In addition to the former coke works site, and former Youngstown Sheet and Tube Office site and other delinquent residential lots, we are working with the Mahoning County Treasurer’s Land Reutilization Program to identify and acquire delinquent parcels for productive and tax generating use.  

The completion of the downtown sidewalk improvement project with the balance of the 2003 CDBG formula grant and the 2004 CDBG formula grant.  The resurfacing of Marion St. and Morrison St. , from Garfield to Euclid Ave. , are part of the program.

Secure an Ohio Department of Development 50/50 grant to expand the Midlothian sanitary sewer system capacity to better accommodate prospective residential development in the area.   

If approved by the OPWC District Committee, implement Phase III Wastewater Plant Improvements to increase the capacity and performance of our wastewater plant clarifiers.

Implementation of the SR 616/Lake Shore Storm Water Management Project.

2005 Budget

I am continuing to work on the 2005 Budget.  However, until issues regarding expenditures and ending balances are resolved I cannot finalize a proposed budget for Council’s consideration.  I would hope all outstanding issues can be resolved soon so we can move forward.  On a positive note, for the first time in years, I anticipate the Street Department receipts will not need subsidized by the General Fund.

Respectfully Submitted,
Daniel Mamula, Mayor