WELLSVILLE — The village is continuing progress towards release from fiscal emergency. On Thursday the Wellsville Financial Planning and Supervision Commission meet to discuss the village’s finances.

Wellsville should be able to apply for release from the fiscal emergency at the next meeting held in January. The auditors will then take two to three months to review the village’s finances and provide an answer.

“We are hopeful to be released; everyone has worked very hard,” said Fiscal Officer Hoi Wah Black.

During the meeting the commission passed a resolution approving Mayor Nancy Murray’s financial recovery plan. The plan was approved by the village council on Monday. The plan outlines policies to keep the village fiscally responsible and provides a five year forecast for the village’s finances.

“The basis for the recovery plan is the five year forecast and it should reflect positive balances. Particularly for all the funds that put you into emergency in the first place, but also for any other funds of the village. We also would like to see, that there’s not deficit spending,” said Barbara Mattei-Smith, commission president and chief financial officer fiscal and facilities at the Office of Budget and Management.

All the accounts are positive, and are predicted to be positive for the next five years. Tim Lintner, project manager from the local government services division of the auditor’s office, did express concerns because there are predictions of overspending in the fire levy fund and the general fund. In the last two years of the five year forecast there are predictions of spending more than the village makes.

Black reported this over spending can be avoided by shifting personal services spending from the general fund to the income tax levy fund and by passing the fire levy fund on November’s ballot. Even with the predicted overspending the accounts will be positive, but the representatives from the auditor’s office still advises the village address these concerns before they become an issue.

“One of the items that our office will be working with the village on is to make sure that the forecasted spending situation for the final two years is a positive situation as well,” said Lintner. “So we’re going to look at the five year forecast and see what can be adjusted to make sure it’s positive for the remainder of the forecast.”

There was also a paperwork error that caused a $4,200 deficit. Black said the error was from making two payments for the new police cruiser. The transaction was canceled and the balance has been corrected.

Another concern Lintner brought up was an increase in overtime spending. As of the end of September the village has spent $41,762 on overtime. He did comment the spending is less than the 2017 end of September spending of $55,711, but Lintner advises the village monitors overtime to ensure it is necessary.

When Wellsville declared fiscal emergency in 2016, the State Auditor’s Office reviewed the village’s finances and wrote the accounting report comment summary. In the report the auditor’s office provided 22 items the village needed to address to be released from fiscal emergency. Currently, 21 of those items are completed. The village is waiting for the department heads to complete the assets list, which is where every asset valued at $500 or more is tagged and cataloged.

“It’s not a minor thing to have 22 items on your comments and to have all but one taken care of, at this point is very good,” said Mattei-Smith.

Murray is looking into ways to increase revenue. She is currently looking into selling the village’s reservoir. Murray reported having three interested buyers. She also asked the commission for guidance on collecting delinquent property taxes. The village has $300,000 worth of delinquent taxes.

Mattei-Smith told Murray about the City of Maple Heights, which developed an efficient delinquent tax program, and offered to act as a liaison in connecting the two municipalities to discuss the program. Mattei-Smith said it may not work in Wellsville, but it’s worthwhile conversation to have.

The next meeting is tentatively set for 10 a.m. on Jan. 9, a backup date of 10 a.m. on Jan. 16 was also set.

jriedel@reviewonline.com