By Perry Schaible
Enquirer contributor

NORWOOD - The city treasurer told members of the Finance Committee Thursday that Norwood is close to having a zero cash balance.

"In the last couple years we've been barely getting by, but there's always been something that happens," Treasurer Timothy Molony said.

"We're at the eleventh hour."

Officials hope residents pass a 14-mill levy on Aug. 3 to bail out city finances.

As of Thursday, the city had a cash reserve of $815,000 with at least three payrolls in July at about $400,000 each.

City revenue and expense projections from 2004 through 2010 show a potential deficit of $2.7 million this year. By 2009, that figure could reach $25.8 million if present trends continue and changes are not made.

"It's not a surprise, it's just a question of when," said Keith Moore, a councilman and Finance Committee member. "We knew this was coming."

Norwood faces a financial crisis despite bringing in more annual revenue than at any time in its history. Years of overspending based on optimistic expectations for commercial developments has eroded finances. The overspending occurred during a previous administration, but the current one is now dealing with the fallout.

If the levy fails, the state will put Norwood in fiscal emergency. The state would appoint a panel to work with city leaders to develop a financial plan that would put the city back in the black, Molony said.

"I look for things to get pretty ugly ... but that's the reality. We could return to those days when there wasn't any money to go around," he said.