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Butler city officials receive warning on spending $1.2 million surplus
Sunday, May 11, 2008

Even though there was a surplus of $1.2 million in the city's coffers at the end of 2007, Butler officials are still being careful about spending plans.

City Clerk Bob Brehm warned council at a meeting in April that "$1.2 million is not something you will see every year, and it's not going to grow."

Mike Kelly, the city's financial director, agreed, saying council had to remain prudent and that projects that had been cut from the budget still need to be done.

Members of a Pittsburgh consulting firm gave council a potential source of additional revenue to consider: adding ambulance service to the city's fire department. The firm consulted with council as part of the state's Early Intervention Program.

Steve Darcangelo, a retired fire chief from Mt. Lebanon and now with Fire Service Consulting, said an ambulance service program could be in place for 2009 if paramedic training could be completed this year at a cost of about $30,000. He estimated $291,000 in operating costs in 2009 to lease two ambulances and train half of Butler's firefighters as emergency medical technicians.

Mr. Darcangelo said two new firefighters should be hired to bring the force to 20. He estimated potential net revenues of $619,000 for the first year, and $1.5 million in the first five years.

Nick Ban, the city's new fire chief, declined comment on the plan because he has not seen the proposal. Chief Ban did say he would hope to work in partnership with Butler Ambulance Service, the city's main ambulance provider.

Mr. Darcangelo is optimistic about an ambulance program working for the city.

"Almost 70 percent of all fire departments in the United States do exactly what I've said here," he said. "Because the fire load [in Butler] is low, this can work."

In 2005, the city applied for the state's Early Intervention Program designed to help cities avoid Act 47 status which puts state agents in control of day-to-day operation of the municipality.

The EIP program is sponsored by the state, but it is up to the municipalities to implement suggested short and long-range plans.

Resource Development and Management, Inc., a financial consultant from Pittsburgh, delivered an emergency financial plan aimed at helping the city increase revenue, cut expenses and streamline services. The firm estimated in 2005 that the deficit would continue to grow and accumulate to $750,000 by 2008 if nothing were done and, if all changes and recommendations were implemented, predicted the city could have a surplus of $47,000 by 2008.

The city took aggressive action, cutting the budget and postponing plans, and it continues to implement ideas from the Early Intervention Program. Council decided to repay its 2008 tax anticipation note of $300,000 early to save interest.

Nancy Welsh is a freelance writer.
First published on May 11, 2008 at 12:00 am
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