Photo by Stephanie Elverd Councilman James Agnew speaks during a Martins Ferry City Council meeting as Jim Schramm appears in the background while officials discuss funding challenges and options for the city’s aging municipal building.

MARTINS FERRY — Discussion over whether the city should raise service rates to help pull several departments out of the red shifted back to a larger, more expensive question: what to do with the city’s aging municipal building and how to pay for it.

Officials said the answer ultimately comes down to funding — or the lack of it — as both repairing the nearly century-old structure and constructing a new municipal complex carry major price tags. A roof replacement alone is estimated at nearly $1 million, while building a new facility would cost about the same or more.

“No matter what way you look at it, that dollar amount is going to be high,” Service Director Andy Sutak said. “No matter what you decide, council has to find the money to do those things.”

Sutak said the core issue is how the city would finance any major project.

“The bottom line is how do we fund this?” he said. “You have the ability to borrow money — just like your house or car — but you have to be able to pay that back. At the present time, there is no additional mechanism to create new funds.”

He also pointed to ongoing financial pressures on the city, including lost tax revenue tied to the closure of East Ohio Regional Hospital, reduced workforce levels at some local companies due to automation, and commercial property value challenges raised through the board of revision process.

“That’s an additional hit on taxes,” Sutak said. “It’s really going to affect our general fund.”

He noted the city’s inside millage sits at 2.80 and said reductions in property values directly impact general fund revenue.

“The bottom line is no matter what we do, we have to find ways that we are going to pay for these issues,” he said.

Councilman Gus Harris raised the possibility of converting the recreation center into a municipal complex, though Sutak said that option would also require significant upgrades.

Councilman Bob Hunker said the city must weigh multiple costly needs, including building repairs, potential relocation costs, and infrastructure upgrades.

“If you do the roof, do you have to do the rest of the building?” Hunker said. “The state is going to put in an inspector. We have some real serious issues with this building.”

Sutak estimated elevator replacement costs at the recreation center could range from $150,000 to $200,000 and said relocating city offices would involve additional expenses for moving police systems, computers, and other equipment.

“You’re going to have to pay somebody to do all that,” he said. “It’s not just one little thing — it all adds up.”

Sutak said federal funding through the USDA could be an option, but would still require repayment and significant upfront engineering work, including a structural evaluation. He said that process alone could cost $40,000 to $50,000.

“We’re going to have to seriously look at everything,” Hunker said. “Council has to come up with a way to fund this. And if you do borrow money, you have to find a way to pay it back.”

The conversation followed talks of raising service rates to help stop city departments from operating at a loss.

City Auditor Jack Regis Sr. said current deficits in utility funds are adding urgency.

“We are $100,000 in the red right now in water, $65,000 in sanitation,” Regis said. “I just want something done so when the auditors come in and ask about them, I have answers — not just ‘we’re working on it.’ I doubt they will accept that anymore.”

Regis said he is pushing for action, including possible rate increases or other measures to stabilize the funds.

“Raise them what you may and do what we have to do to get the funds or do something with it,” he said. “That’s all I’m asking so I’m not sitting on a fund operating in the red.”

Mayor John Davies has been sounding the alarm that a sanitation rate hike was needed. On Wednesday, he asked that council consider it.

A service committee meeting is scheduled for June 1 at 5:30 p.m. to discuss the potential sanitation rate increase.