City shouldn't opt for distressed status until all other options fail
No source of potential cost-cutting should be off the table as Butler City Council ponders the financial future of the city. The current financial crisis will test the will of city leaders as they try to find a way to avoid Act 47 and a distressed-city designation.
Since it was enacted in Pennsylvania in 1987, Act 47 has been used by 20 municipalities, three-fourths of them in Western Pennsylvania, as a means of pursuing financial recovery.
But while Act 47 represents a way out of fiscal crisis, it doesn't enhance the reputation of any community in which it is implemented. It is in no way a public relations tool, and it can be a factor in discouraging some potential good from coming a community's way.
So, while Act 47 could give Butler the financial tools to effect a turnaround - a recovery plan, a wage tax on non-residents and state loans and grants - it also would mean a loss of local control, which is a situation many local residents oppose. The state would appoint a board of control to take over the fiscal reins of the city, and whatever that board decided would take precedence over the opinions of the publicly elected officials.
Opting for Act 47 should be a last resort, not one taken when other options still remain to be exercised - and, indeed, some options do remain.
The city council was told last week the city could face a $140,000 deficit this year. Later in the week, Councilman Mitch Ufner predicted the city could be $1 million in debt by the end of 2006 if something isn't done to balance outgoing revenue with incoming revenue.
In the aftermath of Ufner's dire prediction, Councilman Joseph Bratkovich, city finance director, said, "My numbers show that we will be $180,000 to $210,000 short by the end of this year. What Mr. Ufner is saying is not out of line."
Councilman Charles Savannah made a good point in noting that only about $350,000 of the city's more than $7 million budget is spending that the council controls. The remainder is contractual, he said.
Still, the amount of current discretionary spending doesn't prohibit the council from implementing measures to curb certain outflows of money and bring in new money. It doesn't prohibit the council from directing city government offices close one day of the regular workweek or one week a month. It doesn't prohibit the city from petitioning the county court for permission to levy an additional real-estate-tax mill or two beyond what the city is currently authorized - no matter out distasteful and unpopular that might be.
If the city doesn't ask, it has no chance of obtaining that approval. Even a property reassessment, which has been proposed, couldn't come fast enough for the financially strapped city.
The city could operate with fewer police officers if desk sergeants were required to be a part of patrol duty and city police calls were handled by the county 911 center. The council also should weigh the issue of whether the fire department can be scaled back in manpower, with a network of volunteers who could be called upon as needed. Those volunteers could be paid for the time they were on duty for city service, which would amount to considerably less than what the current firefighters are paid.
On a smaller revenue-raising scale, the city should consider designating 25 or more Main Street parking spaces for premium-permit parking. Since some business owners and workers persist in using Main Street parking that should be reserved for shoppers and other people using services available in the city, they could assure the availability of a parking space without the fear of being ticketed if they "bought" a space.
The site of the former Woolworth's building remains vacant. A money-raising possibility could be if that space were designated for parking, with the property owner and city sharing the revenue until a tenant for the site is found. The trade-off to the property owner would be city police patrols ensuring the safety of the lot.
Regarding police patrols, there could be more emphasis on foot patrols during the daylight hours, saving fuel and vehicle maintenance costs.
Parking freebies during the holiday season should be suspended until the city's finances are gotten in order. Some people who work in the city don't do much or any shopping in the city and don't deserve the free parking that should be reserved only for legitimate shoppers.
It should be made clear to city unions that hold-the-line contracts on wages and benefits will be on the agenda during the next round of negotiations. During the last round of contract negotiations, city officials did not enter those talks with that mind-set. The only alternative to a hold-the-line contract should be pacts containing concessions.
Meanwhile, members of the council shouldn't rule out a pay giveback of their own.
Whether city leaders have the willpower, open-mindedness and courage to consider all money options is just one of the two big questions looming over the city. The other is whether inaction will open the city to Act 47 and all of the unpalatable possibilities that being distressed would entail.
- J.R.K.
