NEWS

Council approves budget despite financial fears

Kent Mallett
Reporter
  • Republican Doug Marmie voted against the mayor’s budget, citing deficit spending.
  • Mayor Jeff Hall said reduction in services and layoffs are the only alternatives to his budget plan.

NEWARK – The city council approved a 2015 budget Monday night, but not before some gloomy financial forecasts and criticism of city and state governments.

The council approved the $29.7 million general fund budget in a 9-1 vote, with Doug Marmie, R-6th Ward, casting the lone dissenting vote.

The general fund budget last year was $29.4 million.

A separate ordinance reduces the income tax allocation to capital improvements from 15 percent to 10 percent. The percent reduction was to be indefinite, but an amendment made the ordinance apply only to 2015.

Marmie, a council member for 14 years, said he had never before voted against a city budget.

“I was told last year the deficit spending was going to stop, and we’re doing it again this year by taking funds from the Budget Stabilization Fund,” Marmie said.

“We’re going in the wrong direction. We’re in jeopardy of not just layoffs, but massive layoffs in the future.”

Marc Guthrie, D-at large, said he agreed with some of Marmie’s points but said rejecting the budget proposed by Mayor Jeff Hall would result in layoffs, as well.

“I opposed the fire station, but I don’t see the logic of voting against an entire budget because I oppose the fire station,” Guthrie said. “It’s going to be a shiny new fire station, but we’re going to have a heck of a time manning it.”

Pay raises to city employees represent a small piece of the budget problem, Guthrie said.

“The biggest piece is what the state of Ohio is doing to the city with House Bill 5,” Guthrie said. “There’s a major collision coming in 2016 because of reckless decisions at the state level, and we’re going to have to deal with it.”

The mayor said he is using the Budget Stabilization Fund for its intended purpose and that Marmie presented no budget alternatives.

He also said the percentage allocated to capital improvements has been tweaked seven times in the past 20 city budgets.

“The alternate plan would be a reduction in services,” Hall said. “You have to operate day to day before you buy new stuff.”

The mayor has said the reduction in funding for capital improvements will be made up with money from its partially self-funded insurance program in the form of a premium holiday.

“It’s overfunded, and it’s our duty not to have it overfunded,” Halls said.

Marmie, however, said that plan is risky.

“We are anticipating we are going to have a premium holiday, and we’re a major illness or accident away from not receiving those premium holidays and be in desperate straits,” Marmie said.

Carol Floyd, D-7th Ward, said the mayor did not have many options.

“I don’t think anybody wants to cut capital improvements, but most of the budget goes to pay city employees and we have to do something,” Floyd said.

The council also approved a $2.5 million grant funds budget and a $65.1 million budget for all other funds.

kmallett@newarkadvocate.com

740-328-8545

Twitter: @kmallett1958