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NILES -- If the latest version of the fiscal recovery plan is adhered to, the city could be financially solvent and start moving out of fiscal emergency next year, Mayor Tom Scarnecchia said.
The state-appointed fiscal commission overseeing the city's financial recovery voted Dec. 21 to approve the administration's latest amendments to the plan, which includes 12 new points.
Commissioner Quentin Potter said if things go well early next year, the commission could start meeting every other month and then once a quarter instead of monthly.
Although the city's general fund is expected to start 2017 with a balance close to zero, a five-year forecast shows the fund steadily improving, ending 2020 with more than $1 million, documents provided by the financial supervisors show.
The city has been in fiscal emergency since 2014, when the state auditor assigned the designation.
The 12 additional points to the recovery plan, making it the fifth version, required funding. The administration allotted the money by trimming from all of the city departments' budget requests, said Councilman Barry Steffey, D-4th Ward. Council Dec. 21 approved the 2017 budget.
The new points in the plan allocate money to programs designed to reduce the impact of regular city expenses in the future by requiring savings programs. Money is to be set aide for a rainy day fund, fire trucks, police cars, street repairs, building maintenance, asset management and water system upgrades.
The plan also calls for a one-year agreement with the Youngstown Warren Regional Chamber, a $30,000 cost that Scarnecchia said could result in more economic development.
The city's other problem funds -- water and sewer -- also have seen improvement. The sewer fund now has a $1.3 million balance and the water fund is expected to get out of the red next year, already dropping its deficit by more than $900,000 this year.
The commission is still concerned about overtime costs and have requested detailed reports outlining the reasons why overtime costs the city 90 percent more in the water department and 76 percent more in the light department than in 2015. One week, city departments charged more than 1,000 overtime hours, said Tim Lintner, a fiscal supervisor.
Potter said there needs to be justification, and Safety Service Director Jim DePasquale said the time can be justified. Reports are expected in January.
A labor pool, another new designation in the recovery plan, should help reduce overtime costs, Scarnecchia said.