Both sides must meet obligations

As they received the city’s annual audit report last week, Vandalia aldermen learned that the city has trimmed its budget deficit from more than $500,000 to less than $50,000.
That’s good news, because it’s an indication that city officials have been effective in taking steps to operate the city more efficiently and  to be more cautious when it comes to spending.
That’s a trend that must continue.
The cuts made by the city have not come without hardships, including a cutback on employees. It’s something that all governmental entities are facing, and something that Fayette County Board members learned on Tuesday, when they heard the new county budget currently includes a deficit of more than $600,000.
City officials heard last week that while they have made some tough decisions, more are down the road.
“You have to continue to be more vigilant on what you spend money,” local CPA Dale Timmermann, whose firm performed the audit, told city officials in delivering the audit report.
“I think we’re going to have to continue to go through some very uncertain times,” Timmermann said.
Ironically, the amount of the deficit is a little less than what’s owed to the city through an incentive agreement made with a developer six years ago.
Shortly after hearing the audit report, aldermen approved a second extension on an agreement with Chuck Keller.
Through the agreement, the city provided free water and sewer line extensions to Keller’s property at the western Interstate 70 interchange. The cost of the extensions was just under $60,000.
In exchange, Keller was required to construct a Holiday Inn Express and a restaurant at that site within a year. The hotel was built within that period, but Keller has been unable to land a restaurant.
Two years ago, the city gave Keller an additional 18 months to get a restaurant. He told city officials that he’s been hampered in his efforts by a sagging economy and his inability to “find the right fit.”
In the agreement it OK’d last week, the city council gave Keller an additional 18 months to procure a restaurant, with Aldermen Mike Hobler and Terry Beesley dissenting.
An option that we see, based on the city’s financial condition, was having Keller pay the amount he has long owed to the city, and reimburse him once a restaurant is built. Or, since he has met half of what was required in the original agreement, make that kind of arrangement for half of the total amount.
We agree with city officials who tout the benefits received by the city from the hotel operations – including considerable tax monies.
But, the city has fulfilled its obligations, and it’s only fair to have the other party do the same. A reimbursement agreement would allow the developer to still receive the incentive originally offered to him.
Anyone who knows about economic development knows that municipalities must offer attractive incentives in order to land new businesses or industry. Our city has done so in good faith.
Does it always work out just as planned? No. But those are the risks you must take to help grow your community. City officials are charged with keeping a close eye on the city coffers. That includes seeking payment of money owed to you.
That’s especially important when you’re laying off employees and making other tough sacrifices.
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