The city of Butler may have to intervene to support the financially struggling Kelly Automotive Park.

While the city is not financially liable for the ballfield, city treasurer Jeff Smith said the city may have to explore raising taxes to support the city of Butler Parks, Recreational Grounds and Facilities Authority, which sits nearly $243,000 in debt.

“It’s possible in the short-term, the city may have to look at increasing its recreational millage to help subsidize the park,” said Smith, who was appointed to the facilities board in April.

The recreation tax this year is 2 mills. It is expected to generate more than $131,000.

The facilities authority is more than $27,000 behind on its mortgage payments to Dollar Bank, which leads a group of five banks holding the mortgage on the 80-year-old park.

The facilities authority was created to manage the park for the city redevelopment authority, which is ultimately responsible for the structure’s mortgage.

The park was renovated in 2007 after sitting vacant for three years. About half of the more than $5 million project was paid for with a state grant, while most of the rest was paid through a mortgage by the redevelopment authority.

“Default is not an option,” Smith said of the mortgage. “The redevelopment authority borrowed money in good faith, and it is obligated to fill that debt.”

But the redevelopment authority also is battling to pay for a $250,000 mortgage on the Penn Theater and is still awaiting a $300,000 state Community Development Block Grant— its primary source of funding for the year.

The city has not discussed raising taxes at its meetings, but Smith said council may decide it has a “moral obligation” to help out.

“The redevelopment authority was created by the city,” Smith said, adding the city picks the members of both the redevelopment and facilities authority boards.

Mayor Tom Donaldson is frustrated the authority is having its financial difficulties.

“It’s disturbing that we have these problems,” Donaldson said. “I’m not happy about it.”

Donaldson said he advised the facilities authority to sell its 40 percent ownership in the Butler BlueSox to the club’s majority group, Perfect Game LLC, and to sign a long-term lease with the club.

The authority is currently trying to sell the club for $75,000 to the majority group with a 10-year lease.

Donaldson expressed concern over both the facilities and redevelopment authorities’ finances.

While the city has a liaison to both boards, both are independent from the city.

“I feel like authorities should report regularly to council,” he said. “But we don’t have control over authorities. That’s why the city has to be careful when it selects these people.”

Both authorities submit annual audits to the city. None of the city authorities make regular updates at city council’s monthly meetings.

The mayor recommended Smith for appointment by council in April.

Donaldson said he believes the ballpark can be saved, but said it will require better management than what was seen in the past.

“It’s not going to happen overnight,” he said. “We’ve had these problems for years but nobody ever did anything about it.”