06/30/1983 Meeting Minutes - Laserfiche WebLink

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MAYFIRLb VoLLASK Founded 181 9- Incorporated 1921 6621 WILSON MILLS ROAD MAYFIELD, OHIO 44143 TELEPHONE 461-2210 July 1, 1983 Dear Employee: As assured you in our letter dated 12/27/82, we have again reviewed the financial posture of Mayfield Village. The Finance Committee, Council as a Whole and the Mayor - with input from the Finance Director - have had a number of ineetings on the subject. Unfortunately, the picture remains dismal and similar to that as explained in our December letter. Incoming dollars (revenues) versus outgoing dollars (costs of operation) are disproportionate in terms of our overall estimated budget. Our major problem right now is that income tax revenues are falling short by approximately $57;000 for the year 1983. Also interest rates have declined and we anticipate a$15,000 loss in anticipated earnings for 1983. So far this means that'we may be short by $72,000 of monies that we have anticipated and have appropriated. If the income tax revenues do not improve this shortage could increase. Some facts that everyone should be aware of: The Village income tax provides us with 59% of our operating revenues. With an estimated shortage of $72,000 we are looking at a 3.2% decrease in income in 1983. Coupled with this, increased costs of operation have been severe. Hospitalization alone went up 31% or 33,000.00. Pension costs up by 14,000. Materials and se.rvices just to meet our daily needs have increased. Some cost increases are somewhat controllable. Others are not. We have an expert in the insurance field presently reviewing our hospitalization plan. We may.be forced to make adjustments. Department Heads have been cautioned that only high priority or emergency requisitions will be processed. But in spite of all the foregoing facts, it has been the feeling of Council and the Mayor that some form of interim dollar appreciation should be granted our good employees. -over-