BY ALLEN HOWARD
The Cincinnati Enquirer
SILVERTON -- The city appears on the verge of conquering its serious financial problems, which sparked drastic budget cuts and some nasty exchanges among city officials last year.
But it can't celebrate yet, Clerk of Council Robert Fredericks said Wednesday.
"We have recovered quicker than expected," he said. "All departments adhered to the budget restraints we proposed, and we were able to live within those guidelines. But we haven't been able to set aside a rainy-day fund. This bothers me."
Silverton was placed on a fiscal watch by state officials in 1997 when it could not meet its payroll. Its $1.5 million budget this year had across-the-board cuts, such as closing the swimming pool, selling a police cruiser and charging for ambulance services. The city was able to open the swimming pool with a $40,000 gift from local financier Carl Lindner.
The city is still under the fiscal watch, and its financial status will be reviewed at the end of the year, Mayor James Siegel said. CP:J. Siegel
In July, Mr. Fredericks reported to council that the city had moved from a deficit of $335,570 in 1996 to an estimated $120,000 surplus the end of 1998.
"All this is good, and what it shows is that we were able to observe strict restraints and stay within our budgets," Mr. Fredericks said. "But we still have some bills that haven't been paid."
He said the city is behind on payments for street repairs, completed two years ago. It owes $156,000 for repairs on Elwynne Drive and $160,000 for work on Belkenton Avenue.
It also owes $80,000 on a fire engine it bought.
"I don't want to give anybody false security. If a business leaves the area or if a city employee retires, we could face another tight squeeze on finances," Mr. Fredericks said.
Future projections show a bright picture. Mr. Fredericks said that, based on estimated revenues of $1.7 million and expenditures of $1.6 million, the city can expect a surplus at the end of 1999, too.
Mr. Siegel is cautiously optimistic about the future. He thinks that if nothing critical happens, the city will probably be taken off the fiscal watch at the end of the year.
"We just have to watch our spending," Mr. Siegel said. "Each department has been very good in watching the individual budgets, which is what has made this work."
