Several Toledo councilmen took their first shots at Mayor Paula Hicks-Hudson's proposed 2016 general fund budget today.
Their largest concern was something Council Finance Chairman Larry Sykes called “phantom revenue” proposed by the mayor, which includes assumptions that the city will get $2.5 million from the sale of city-owned property and $800,000 from donations and grants to fund pools and recreation next year.
“It is a great concept but I really hope we can sell that property,” Mr. Sykes said.
Councilman Sandy Spang said she was not comfortable with such assumptions in the budget.
She said it was bad business policy to expect to fund daily operations with shot-in-arm revenues provided from the sale of property — which are not guaranteed and cannot be duplicated the following year.
Ms. Spang and Councilman Theresa Gabriel, who also voiced concern about the budget's assumptions, both grilled Finance Director George Sarantou during a hearing this afternoon.
“This balanced budget that we received is under the assumption that we have to sell $2.5 million in real estate,” Ms. Gabriel said. “And if you don't what is your plan?”
Mr. Sarantou assured Ms. Gabriel and council that the property is likely to sell.
The $2.5 million would come from selling city property, including the empty former site of Southwyck Shopping Center, the property where NorthTowne Mall once stood, and city-owned land Monclova Township, he said.
The budget also includes no dedicated funding for swimming pools, but Mayor Hicks-Hudson last week said the city could raise $800,000 from grants and donations for pools and other recreational programs. That number is also written into the budget.
Under the mayor's proposal, the city’s general fund will be balanced next year by a razor-thin margin by nearly doubling what Toledoans pay monthly for trash collection, pushing back the hiring of new police officers and firefighters, and taking more than $10 million out of the fund used for street repaving, Mayor Paula Hicks-Hudson announced Friday.
A monthly report to council today showed income tax revenues were down 0.2 percent through Oct. 30 versus the same period last year.
It also said fire department overtime as of Oct. 30 was $2.3 million — already over the annual budget of $1.77 million. Police overtime, however, was $2.1 million, which is still under the annual budget of $2.28 million.
First Published November 19, 2015, 9:31 p.m.
