FAIRLAWN: Mayor William Roth looks forward to the rewards and challenges he expects 2012 will bring to his job.Roth leads a city of modest size — 7,437 residents — that swells to about four times that number by day as people pour over its borders to conduct business.The five-square-mile area is known for its expansive array of retail businesses along West Market Street, including stores and restaurants in Fairlawn Town Centre, Rosemont Commons, Shops of Fairlawn and Summit Mall. There are two hotels (a third is being built at Embassy Parkway), along with several banks, various medical and professional offices, and corporate headquarters that bring workers —and their payrolls — to Fairlawn.The city’s major source of revenue is its local income tax.The Shops of Fairlawn and Summit Mall boast 100 percent occupancy.“We are fortunate that retail is strong in this area and is helping the city to recover economically faster than many cities due to its diverse tax base, but like everyone else, we just can’t predict the future,” Roth said. “I think we’re OK for 2012, but I am cautiously optimistic. Hopefully, the economy will continue to recover.”Roth, 53, and in his fifth term, said Fairlawn faces three major challenges, which he calls a “triple storm”:• Challenge 1: Low bank interest rates. The city is getting little return on its dollar, which hurts revenue. Typically, Fairlawn averages $300,000 and $500,000 interest on its accounts, but last year’s interest earned only $70,000, Roth said.• Challenge 2: What’s going on in the Statehouse with cuts in local government funds.“We don’t know what cuts they may come up with this year and nothing to replace that money. Their simplistic answer is just raise income taxes, but that can’t happen. It’s not realistic,” Roth said. He said the uncertainty is one of the reasons the city is hesitant on what jobs to fill. Some full-time positions will be filled, but not all. Recently, Roth appointed a fire chief and a service director, both from within the departments.The police department is down two full-time officers and a dispatcher. The fire department is down two full-time firefighters, and the service department is down a full-time hire.“We may have to make do with what we have,” Roth said.The city employs 75 full time and 50 part time.The mayor called labor relations in Fairlawn “very good.” Employees received a 3 percent pay increase last year. In the past, union workers had agreed to wage freezes, as had administrators, including the mayor.This year’s budget is about $25 million.• Challenge 3: What happens when the estate tax goes away in 2013. The city has collected $450,000 over the past 10 years in estate taxes.Although the financial picture is sound right now in Fairlawn, Roth said he is always concerned about attracting and keeping businesses in the city and would like to see some improvement in the office market, which is at about 80 percent.There is also the ongoing controversy over the proposed relocation of Walmart and its sister store, Sam’s Club, and the prospect of losing income-tax dollars.The stores are in Rosemont Commons in Fairlawn, but the company wants to expand and move to neighboring Copley Township, less than a mile away on 40 acres on Rothrock Road. Walmart officials say they want a one-stop Supercenter open all day with a full grocery line and a Sam’s Club with fuel pumps.City officials say Walmart officials never discussed the move with them.Roth said relocating the stores will disrupt traffic patterns in Fairlawn. He said it is the city’s job to preserve the residential integrity of neighborhoods against traffic that would use Rothrock as a thoroughfare to the proposed stores.City officials have set up barricades at Rosemont Boulevard at its intersection with Rothrock Road and have closed off Rothrock at Sawgrass Drive to prevent shoppers from cutting through Fairlawn neighborhoods. The city is still considering installing a gate system to restrict traffic on Rothrock.“As far as the Walmart issue, it is what it is,” Roth said. “It’s where it can only be: in the courts.” Meanwhile, Roth focuses on increasing the city’s income strength.He created the Community Improvement Corp., which is focused on economic development. He said Fairlawn owns 56 acres of prime real estate at Ridgewood and Cleveland-Massillon roads and hopes it can entice a company to move there for research and development.“We want job creation and job preservation,” Roth said. “We aren’t trying to take business out of Akron or any local community. We want to bring in new companies from out of state or from another country. We are testing the waters.”The mayor also created a safety net last year with the Fairlawn Community Foundation. It helps solicit donations for extras the city can’t afford.Last year, the foundation raised enough money to bring back the July Fourth fireworks and parade. In 2010, both were canceled because of budget cuts.Road projectsProjects this year will include Haverhill Road and older sections in the Villages of Fairlawn and parts of Embassy Parkway.“All the city’s road programs are cash and carry,” Roth said. “Residents are not assessed for street improvements.”The mayor said he is proud of the city’s parks and their improvements. This is the year soccer fields at Fairlawn Park will open. The community garden in front of the soccer fields on Ridgewood Road will be available this spring for the second year. Fairlawn and area residents can rent a plot to grow their own vegetables.“The city comes first,” said Roth, who is paid an annual salary of $81,000. “It keeps me hopping, and I love it.”Marilyn Miller can be reached at 330-996-3098 or mmiller@thebeaconjournal.com.