By Steve Kemme
Enquirer staff writer

NORWOOD - On the verge of going broke, Norwood will barely be able to make its payroll Friday.

Two weeks ago, Norwood officials had warned employees that they might miss all or part of their bi-weekly paychecks in the near future.

But after collecting $100,000 more than expected in earnings tax revenue and postponing the payment of a couple of large bills, Norwood will be able to scrape enough money together to give employees their full pay Friday, City Treasurer Tim Molony said Tuesday.

The general fund bi-weekly payroll is $350,000 to $380,000.

"It's going to be close every payday," Molony said. "It's a matter of cash flow and working things out with vendors."

Norwood is facing a projected $2.6 million year-end deficit.

In a move to cut expenses, City Council will be considering making residents pay for trash collection. Norwood is paying Rumpke Inc. about $880,000 this year for trash pick-up.

On Tuesday night, City Council's Finance Committee recommended drafting an ordinance instituting residential trash collection fees. Details need to be worked out before council can vote on it, said Councilman Joe Sanker, chairman of the Finance Committee.

Overspending, delays in major commercial property developments and the overwhelming defeat of a proposed 14-mill city operating levy earlier this month have placed Norwood in its precarious financial position.

Norwood officials expect the Ohio Auditor's Office at some point to declare the city to be in a state of fiscal emergency.

In a fiscal emergency, a commission of officials from Norwood and the Ohio Auditor's Office would formulate a two-year plan to put the city back on track. City Council and then a Hamilton County Common Pleas judge would have to approve the plan before it could take effect.

The plan could include employee layoffs, service slashes, fee increases and a new levy.

A fiscal emergency also would give Norwood access to certain state loans.

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E-mail skemme@enquirer.com