City could face bankruptcy if public safety levy is not renewed

MIDDLETOWN — Should the city be unable to renew its quarter-percent public safety levy in 2012, it could be bankrupt by the end of 2013.

City Manager Judy Gilleland said Middletown has taken a double hit when it comes to funding public safety. Both the general fund income tax revenues and public safety levy revenues are down as a result of the recession.

Late last year, Council directed Gilleland to eat into the city’s general fund balance, dropping it from 25 percent of the city’s annual budget to 15 percent.

“Given the current scenario, we’ll cross below 15 percent somewhere in 2012,” Gilleland said. “(The trend) also further illuminates the fact if we lose the public safety levy, our general fund balance will go down to zero in December 2013.”

The Finance Subcommittee of City Council met Thursday, April 22, to discuss the trending of city revenues and expenses. The slowly flattening income tax collections were a topic of concern.

While January and February of 2010 were showing positive signs for the city, March numbers more closely resembled those seen in 2009. Revenue from the city’s public safety levy are trending somewhat similar to 2009, though city officials predict they could still come in $200,000 over the budgeted revenue of $2.4 million.

Council members disagreed about whether to fill four vacant police and fire positions with projected revenue surpluses or wait and see if the money shows up.

Councilman A.J. Smith argued for filling the jobs.

“In 2012 we’ll be asking for a renewal of this levy and I find it hard to believe we’ll be able to sell a message to our constituents if we didn’t keep our promises the first time,” Smith said. “The money is there and I think we have a fiduciary responsibility to uphold our promise to our constituents by filling these positions.”

Councilman Bill Becker vehemently disagreed, saying the city should wait for the revenues before hiring.

“We can only afford what we can afford,” Becker said. “Deerfield is using mutual aid every day and they might have to cut half the department if they don’t get a renewal. In Moraine they took a voluntary pay cut. How are we any different?”

With Smith repeatedly insisting enough money will be available to add personnel, Becker appeared frustrated and told his young colleague to propose whatever he wants.

“Spend it then,” he said. “And when the city’s broke, it’s on your shoulders.”

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