ELYRIA — The Elyria Police Patrolmen’s Association hired a forensics financial auditor to look over the city’s books and the result is a report that says a conservative $1.154 million could be taken from other funds and placed into the general fund.

With the reallocation, the city could provide the approximately $400,000 needed to prevent five police officers from being laid off next year, according to union officials.

City leaders have said Elyria is facing a $4 million deficit in 2010 and layoffs in the Police Department, among other areas of city government, are needed to fill the gap.

Police union President Tom Baracskai said the auditor, Mary Shultz of Sargent & Associates, was hired so union members and City Council members would have a better understanding of city finances. Schultz was not hired as a pressure tactic by the union, he said.

“We just wanted to be able to ask the right questions by having the right information,” he said. “I’m not an auditor and neither are my guys. We are just like everyone else sitting in front of the auditor and the mayor as they go over the budget.”

Baracskai forwarded the report to City Council members on Dec. 5 along with a letter where he implored Council members to think hard when determining budget priorities for next year.

“In these times of economic struggle, the decisions need to be made on how best to spend what little money is available,” the letter said. “The wants and needs of the city need to be determined and acted upon promptly. We, at the EPPA, feel the police services is a need for the city and hope that the members of the Elyria City Council will agree and use this information to better decide the future for us all.”

Baracskai said Shultz was referred to the union by the county deputy’s association, which has used her for audits in the past, including a review of the county’s books earlier this year. She also did some forensic accounting work for the criminal trial of former Lorain County Commissioner Michael Ross.

In her audit, Shultz, according to a copy of a public records request she made, looked at a number of different documents including the 2007 and 2008 annual comprehensive financial report, fund transfers and advances for 2008 and 2009, open purchase orders through December 2008, revenue and expenditures for 2008 and 2009, the 2009 budget and the 2010 budget projections.

From those public documents, Shultz suggested the city increase its general property tax estimates for 2010, increase revenue projections in the Building Department based on the money made on building permits this year and transfer money from funds in the Parks and Recreation Department, Health Department and Elyria Municipal Court.

For example, Shultz said there is a $58,000 surplus in the Health Department’s food service fund that can be moved in part to the general fund. There also is $140,000 in the cemetery maintenance fund and more than $680,000 in the municipal court fund.

“With an analysis of the city funds, we found several possible sources of funds totaling $1.154 million that may be accessible to subsidize the general fund to maintain the public safety forces without layoffs or further cuts to the Police Department budget at this time,” Shultz wrote at the conclusion of her report. “The city can then meet its obligation to provide law enforcement services to keep the citizens safe, without overspending.”

But City Auditor Ted Pileski doesn’t see where $1.154 million could be salvaged in the special funds to bump up the general fund.

Property tax estimates are low because county Auditor Mark Stewart lowered property values in Elyria by 8 percent. In addition, of the more than $594,000 that was received for building permits, more than $461,000 was associated with the construction of the new $60 million Elyria High School. Those permit costs are a one-time thing, Pileski said.

And the $680,000 in the municipal court fund is from court costs attributed to defendants and is used at the judges’ discretion for the court system. This year, both municipal court judges moved employee salaries into those funds to help the general fund and will do so again in 2010.

Mayor Bill Grace said it would not be wise to start depleting all the smaller funds for the general fund.

“It would be irresponsible to run all these account balances to zero,” he said. “You have to have some wiggle room in these funds to meet any unexpected necessary expenses. You can only go so deep. As it is, our credit rating from Moody’s Investors Service has been lowered because we are bringing our funds down so low, which is causing us to pay more interest on the money we borrow.”

Still, Baracskai said Council members have to be aware of the possible cost-cutting measures and that is the reason why the union hired the auditor.

“It’s their choice. It’s their money,” he said. “It’s just our personal and professional opinion that police officers are a need, not a want.”

Contact Lisa Roberson at 329-7121 or lroberson@chroniclet.com.

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