By Jan H. Kennedy
FPS correspondent
May 19, 2009
Layoffs by major manufacturers within the corporation limits could reduce Minerva’s income tax receipts by at least $80,000 this year.
That was the bad news delivered to Village Council May 12 by Administrator David Harp. The good news was that no 2009 capital improvement projects will be affected. Harp expected to have an estimate of how the reduction will affect village finances for 2010 at its workshop last night (Tuesday).
The bad news came from a letter to Mayor James Waller from Colfor stating the company plans to temporarily shut down operations at its Minerva, Malvern and Salem plants in the next few weeks for up to six months. It could be longer, depending on how the auto industry responds between now and then. Much of the company’s business comes from General Motors and Chrysler Corp.
In all, 589 employees will be laid off at the three plants, said Renee Rogers, manager of media relations and communications at American Axle Mfg., parent company of the three local plants. About half of them were laid off late last year. Chrysler and General Motors accounts for 84 percent of the company’s contracts, but other companies, including Harley-Davidson, will continue to be serviced by a small crew, she said.
“Our shutdown is in response with the troubles Chrysler and GM are having,” Rogers said. “When they ramp up again, we will ramp up again and many of our employees will be called back.”
PCC Airfoils also has reduced employees by 25 and 48 in two lay-offs, and the aluminum company also has reduced employment at its plant.
More than 300 layoffs at Colfor will cost the city about $11,000 per month, Harp said.
The village’s annual budget for the year is $1.76 million, so a loss of $80,000 or more could be crucial to next year’s budget. The village had a large carry-over from 2008, but that could be eaten up as the village meets financial obligations at year’s end.
“All of our capital projects this year are safe,” Harp said. “We already have encumbered the money for those projects.”
In an unrelated matter, Harp had some good financial news for council. Bids for the emergency electric generator mandated by the Ohio Environmental Protection Agency came in about half of estimates. Council accepted a bid of $99,967 from Speelman Electric for the generator. The original estimate was $191,000.
The village has a grant from Issue 2 infrastructure funds for half of the original estimate. Harp said the low bid will free up more than $50,000 of the village’s match money for other uses.
In other action:
- PASSED an amendment to the village’s parking ordinance to ban parking in front lawns of residences. The fine will be up to $100, but a warning will be given on the first offense.
-AUTHORIZED Harp to enter into an agreement with Stark County commissioners for a $150,000 Community Development Block Grant to help pay for the Murray Avenue storm sewer project. Phase 1 will run the sewer along Murray from Jackson Street to Line Street, leaving it low enough at Jackson Avenue to allow for drainage from Jackson in the future. The work includes curb, gutter and sidewalk work.
-HEARD Harp remind council that he still wants to talk about an ordinance requiring internal inspections of rental properties in the village.
The next council meeting is May 26 at 7:30 p.m. |
