Lewis: Deficit pending by end of 2013

The city of Hillsboro is facing a projected negative balance of $670,572 by the end of 2013, leading into a negative starting balance of $420,572, if drastic cuts are not made in the city budget.

In a press conference held Thursday in the Hillsboro City Building, Hillsboro Auditor Gary Lewis said that the fiscally responsible option for the Hillsboro City Council to take is to contract with the Paint Creek Joint EMS and Fire District for services. However, even if the city enters into such a service agreement, a 15-percent cut in general fund departments would still be necessary for the city to have a balanced, functional budget.

Approximately $1 million will be needed to make up the losses in sub-fund of the fire department, Lewis said, after the loss in revenue from contracting with area townships, as well as the revenue loss of soft billing EMS patients.

Lewis said that the cuts will be difficult, as many departments are currently operating on "a skeleton crew."

During council's regular meeting Monday, Lewis had reported that the city's financial status was "not good" and that "our financial bucket is effectively empty."

When asked for a timeline on when such cuts would have to be made, Lewis said, "From a financial position, yesterday would have been great. The first of July would have been great. And, again, it's from a financial position. I'm looking at what funds I have available to get us through the worst-case type scenarios. The sooner, the better."

The city would have been in been in better shape, Lewis said, "if the financial damage could have been confined to one year. But rarely is that the case in government."

Had the cuts been made prior to July, Lewis said, "the unemployment could have been washed out."

Council has scheduled two special sessions this week, one on Friday at 6 p.m., and one on Monday at 6 p.m. for the purpose of considering a resolution to authorize entering into an agreement for fire protection and emergency medical services by and between the city of Hillsboro, Ohio and the Paint Creek Joint EMS/Fire District; and an executive session on contract negotiations and security issues.

For an additional breakdown and outline of Lewis' report on the status of the city finances, check back to www.highlandcountypress.com.