By SHELLEY TERRY - Staff Writer - sterry@starbeacon.com
Star Beacon
January 12, 2009 11:17 pm
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ASHTABULA — City Council voted 5-1 Monday to ask the state auditor to conduct a fiscal watch review of the city’s finances, to determine whether it is approaching a state of fiscal emergency.
Ward 4 Councilwoman Julie Lattimer cast the lone ‘no’ vote.
Vice President Betty Kist made the motion during a special meeting at City Hall. This means State Auditor Mary Taylor will send auditors to look over the city’s finances and make suggestions.
“We have problems and there are departments here that don’t believe what I’m telling them,” City Auditor Michael Zullo said. “(The auditors) are people who do this every day. It’s free. Why not use a free service?”
The state auditors will come in, look at the finances, make suggestions and be out in 30 days, Zullo said.
Lattimer said she believes council is “jumping the gun” by calling in the state auditor.
“Our public relations may be tainted,” she said.
Zullo said, “A fiscal review is not a black eye on the city.”
City Manager Anthony Cantagallo narrowed the deficit from $1.7 million at the start of the 2009 budget process to $220,000 on Friday, he said, noting department heads cut spending and employees agreed to different insurance plans.
“We thought we had a balanced budget,” Cantagallo said. “I need a number. I can’t keep a balanced budget with tilting numbers. What’s the number?”
Zullo said he can’t say — right now it’s about $233,000.
“The numbers change, that’s the way budgets run in government,” Zullo said. “We can control expenses, we can’t control revenue.”
Kist said she didn’t understand why anyone would have a problem with a state review.
“It’s free advice,” she said.
Council also requested a $200,000 cash advance from the Ashtabula County auditor on the city’s 2009 property tax collections to get through this tough time.
Just last month, council invoked a hiring freeze.
“This year, we’re asking for $200,000 from the county auditor, usually we ask for $100,00,” Zullo said. “The hiring freeze was a good first step.”
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