The city of Athens' 2011 budget will leave the taxpayer-supported General Fund seven positions lighter this year, but the overall budget is balanced-for now.
Within the $11.7 million General Fund, which covers nearly 80 percent of the city's personnel expenses, four positions were terminated and three more moved to other budgetary units to help the city break even on this year's $31.2 million budget.
This year's budget is larger than last year's, but only slightly. Athens' 2010 budget was $31.1 million with an $11.8 General Fund.
We're guessing our revenue is going to be flat for next year
said Mayor Paul Wiehl.
The eliminated positions - one patrol officer, one firefighter, one street department worker and one custodian - saved the city at least $200,000.
Of course I'd like to have another community police officer on the beat said Councilwoman Nancy Bain, D-3rd Ward.
But the costs associated with filling the positions - providing salary, benefits and equipment - made it more financially efficient to eliminate them, said Bain, who also is co-chair of council's finance and personnel committee.
The city is also shifting three custodial positions from the General Fund to other budgetary units. Instead of paying these employees through tax dollars, they will be paid through the parking garage and the Athens Community Center.
Even with fewer positions, 165 compared to last year's 172, the city had to dip into carryover funds from 2010 to break even, Wiehl said.
Although the balanced budget was approved at an Athens City Council meeting Dec. 13, city officials can't put their calculators and spreadsheets away just yet.
City officials expect to make mid-year cuts once Gov.-elect John Kasich is inaugurated and announces his proposed two-year budget. Facing an $8 billion shortfall, Kasich expects to cut both higher education and local government funding, which would mean more cuts to the city budget.
Higher education cuts might force Ohio University, Athens' largest employer, to implement mandatory employee furloughs. OU's Board of Trustees approved a furlough policy at its fall meeting.
OU furloughs would cut income tax revenue for the city, Bain said, adding that the university won't know the status of state funding until at least July, which could lead to city budget cuts very late in the year.
It's going to be pretty frightening Bain said.
City officials also anticipate receiving less state and county support as Ohio lawmakers implement top-down belt tightening to close the state budget hole.
Athens receives funding from the state because much of the city's land, primarily OU, is tax exempt, said Councilman Jim Sands, D-at Large, who also serves as co-chairman of the finance and personnel committee.
Athens County officials said last month they expect to be dealt a 75 percent cut in state funding, which could mean cuts to county funding for Athens.
It's not a significant amount of money in our budget
but any cuts are something that we have to deal with
Sands said.
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Wesley Lowery
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