Trending
GIRARD -- City officials hope redistribution of speed camera money will help counter a "worst-case scenario" general fund deficit of $400,000.
City council recently approved moving more money collected from fines generated by speed radar cameras to the general fund. The general fund pays for most day-to-day operations in the city.
Retroactive to April 1, 50 percent of the camera profit will go to the general fund, 25 percent will go to the police department, 20 percent will go to streets and sidewalks, and 5 percent will go to parks and recreation.
The old distribution when the cameras were implemented last summer was 40 percent for streets, 30 percent for police and 30 percent to the general fund.
Officials said the speed cameras brought in $400,000 in six months of operation in 2016. Mayor Jim Melfi said he expects there to be more coming in 2017 since it will be for an entire year.
Councilman at-Large John Moliterno, chairman of the finance committee said that while he is glad the speed cameras are being used, he anticipates the cameras eventually will lower the number of speeders in the city, which in turn will decrease fines.
"I voted for the cameras wanting them to slow down traffic and not for getting extra money," he said,
Auditor Sam Zirafi told council putting additional money into the general fund would help avoid a deficit this year.
Officials said the city ended 2016 with a $114,000 general fund deficit. Melfi said the $400,000 deficit stated by Zirafi is the ''worst-case scenario. That will never happen."
Moliterno said the redistribution will benefit other funds.
"The general fund helps all facets of the city, so there needs to be money there," he said.
Also affecting the general fund was a recent state audit, which informed the city that it will need to transfer $210,000 from the general fund to the municipal court fund.
Girard Municipal Court Judge Jeffrey Adler had approved the transfer of the $210,000 from the municipal court fund to the general fund in 2014 and 2015, because the court is partly subsidized from the general fund. State auditors concluded the $210,000 belonged to restricted funds that could not be legally transferred from the municipal court to the general fund.
Melfi said the city received $325,000 in 2015 and $159,000 in 2016 in taxes from Vallourec Star. Moliterno said Vallourec has hired more people, which will mean more taxes.
"We want to see income taxes collections go up and as members of council, we want to work with the administration and find ways to generate additional revenue for the city," he said.
Moliterno said one other possible additional source of revenue is the Girard Lakes property.
To also help cut costs, Melfi said there has been a freeze on hiring of personnel in police and fire.
Zirafi said the city is waiting for property-tax revenue to begin in the spring.
As for the projected deficit, Moliterno said it has only been the first three months of the year. "We can keep an eye on it."