The potential loss of the revenue from the service contract with the village of Marble Cliff could have serious implications for the city of Grandview Heights, especially in the short term, according to Grandview Mayor Ray DeGraw.

The potential loss of the revenue from the service contract with the village of Marble Cliff could have serious implications for the city of Grandview Heights, especially in the short term, according to Grandview Mayor Ray DeGraw.

Marble Cliff Mayor Kent Studebaker has sent a letter to the city of Upper Arlington to explore that city's interest in providing some or all municipal services to the village.

The current three-year contract between Grandview and Marble Cliff expires at the end of this year.

The $494,773 the city is receiving from the village this year to provide police, fire, trash collection and other services represents about 5 or 6 percent of the city's revenue, DeGraw said.

"That money is part of our revenue assumptions," he said.

The loss of the service contract, added to the reductions in state funding for local governments, could mean a total decrease of about 10 percent in city revenue, DeGraw said.

While the city has a long-term plan in place, including future revenue from the Grandview Yard project, in the short term such a financial hit would make it more difficult to maintain a full level of city services, especially after the cuts the city has already made, he said.

If the worst happens and Marble Cliff contracts with Arlington, Grandview officials will have to reevaluate its operations and look for ways to do things even more efficiently, DeGraw said.

The same number of employees would be needed to maintain the level of services, even with Marble Cliff taken out of the equation, he said.

"Probably my biggest concern is that we are inter-related communities," DeGraw said.

If the city's ability to maintain a full level of services is threatened, that could affect economic development, which benefits not only the city but the school district as well, he said.

If school district finances are affected, that could mean the need for higher property tax levies for the schools, which will affect not only Grandview, but also Marble Cliff, DeGraw said.

It is not surprising that Marble Cliff would be investigating other potential service providers, he said. In this economy, it's a community's due diligence to find ways to save money where it can.

"I am a little surprised" with Arlington's seeming interest in the matter, DeGraw said.

When in past years Marble Cliff reached out to Arlington, the city seemingly expressed no interest, he said.

Upper Arlington City Manager Virginia Barney said the city is looking into the matter.

"What we'll be sending in September is a letter stating whether or not we would be willing to (provide some or all services) then we wait for (Marble Cliff) to see how they want to move forward," Barney said.

"At the moment, I've asked the department heads to see if they could meet the request with their current staffing, without additional people or affecting the services to our residents," she said. "I've asked if there are other services that we could provide, and we are in the process of evaluating that."

Grandview will also be preparing to talk with Marble Cliff about renewing the longtime agreement between the two communities, DeGraw said.

It's his hope that a "bidding war" will not result, he said.

The proposals that any community would make to the village should be based on the services to be provided and the cost to provide those services, DeGraw said.

Staff writer Lin Rice contributed to this story.