Article published February 13, 2009
Toledo mayor presents budget fixes
Cutbacks, new revenue streams aim to fill $14M hole
Mayor Carty Finkbeiner takes questions about his proposed budget plan during a presentation at the Toledo-Lucas County Main Library downtown. At left is his chief of staff, Robert Reinbolt.
(
THE BLADE/DAVE ZAPOTOSKY
)
|
By IGNAZIO MESSINA
BLADE STAFF WRITER
Toledo Mayor Carty Finkbeiner yesterday proposed a combination of cutbacks and new revenue streams to fill a $14 million budget hole. His plan would require city residents who work in another city to pay more income tax and also would bill property owners' insurance firms for fighting structure fires.
While the mayor's plan protects police officers and firefighters from layoffs, it reduces the budgets for both departments, removes one fire truck from active service, and relies on deep concessions in new contracts being negotiated with all of the safety forces' unions.
Even though Mr. Finkbeiner proclaimed the city's budget as balanced, his plan only partially addresses an $8.1 million shortfall from 2008. Under the plan, the city will close the books on last year with about a $1.7 million deficit, which is in violation of the law.
Mr. Finkbeiner presented his plan to close out the 2008 general fund budget, reduce the 2009 spending plan, and pump up revenues yesterday at the Toledo-Lucas County Public
Library downtown. He called the city's financial crisis the "single greatest challenge" during his 12 years as mayor.
"During the last few months, no matter how many cutbacks we have made, the treasury of the city remains dry," Mr. Finkbeiner said.His plan calls for only six layoffs and cutting four unfilled positions of supervisory jobs, but it shifts all nonunion employees - about 150 people - to nine-hour shifts for four days a week.
Dan Desmond, vice president of the Toledo Firefighters Local 92, questions the safety of the proposed reduction in minimum staffing levels outlined in Mayor Finkbeiner’s budget plan.
(
THE BLADE/DAVE ZAPOTOSKY
)
|
"We know we cannot afford to lay off many more people and keep services flowing to our citizens," Mr. Finkbeiner said. "Difficult times demand difficult decisions. If we are to make it through these hard times, and we will, we must do what is necessary to balance our budget and keep our citizens safe."
Mr. Finkbeiner said the city has already cut $25 million from its budget during the past 25 months and pointed out that Toledo has fewer employees per 1,000 residents than any other large city in the state.
The city's financial status is complicated but boils down to this:
Toledo is about $8.1 million in the red from 2008.
City Finance Director John Sherburne yesterday said the 2009 general fund budget - which was already austere - has to be revised because the latest predictions show income tax revenue will be down another $9 million to about $160 million.
The city's $6.4 million rainy-day fund will be applied to reduce the 2008 deficit, but because $2 million of that money had already been dedicated for 2009, the 2009 shortfall was widened by that amount.
That equates to an $11 million reduction needed in the 2009 budget on top of the $1.7 million deficit from last year.
The mayor arrived at a grand total of $14.26 million "because he wanted a contingency," Mr. Sherburne said.
The mayor's plan includes:
•Redirecting another $800,000 in unspent capital improvement project funding.
•Saving $2.5 million by reducing overtime in the fire department, reassigning more firefighters to the line, and taking a fire truck out of service.
•Generating $500,000 by billing for responding to a structure fire.
•Saving $438,000 by reducing the police department's overtime budget, training funds, and postage money.
•Saving $530,000 by switching 150 employees to a 36-hour, four-day workweek.
•Cutting $500,000 from the city's fuel budget.
•Saving $1.4 million from new contracts with police and fire. The mayor wants a mandatory five-day furlough, co-pays for health care, and a 1 1/2 percent reduction in the amount the city pays to the state pension fund for all employees. Those would mirror some concessions already accepted by the 800-member American Federation of State, County, and Municipal Employees Local 7, the largest city of Toledo union.
•Saving $750,000 by switching to automated trash trucks that need a single driver instead of a three-man crew.
•Generating about $175,000 by freezing the city's trash fee at $7 for those who don't recycle and $2 for those who do. It will otherwise change on May 1 to $8.50 a month for those who don't recycle and drop to $1 for those who do.
•Generating $5.2 million by eliminating 50 percent of the tax credit with other cities.
Since the inception of an income tax, the city has granted a 100 percent credit to residents who work outside Toledo and pay taxes to the city where they work. The credit allows some city residents not to pay any income taxes to Toledo.
It would affect about 19,000 people, Mr. Sherburne said.
For example, the city of Maumee has a 1.5 percent tax rate, compared to Toledo's 2.25 percent. A person living in Toledo and working in Maumee would have to pay the difference, 0.75 percent, between Toledo's rate and Maumee's rate.
Toledo City Council President Mark Sobczak was pleased that the mayor's plan keeps layoffs to a minimum and that its excludes police and fire from layoffs.
Regarding the tax credit, he said it was a necessary measure that was probably overdue.
"They pay us nothing and get police and fire, and if they recycle, they pay just 24 bucks a year for trash pickup," Mr. Sobczak said. "A lot of other cities do this."
Councilman George Sarantou, chairman of council's finance committee, said the mayor's plan made sense and agreed with the tax-credit plan.
"Council is not interested in laying off a police officer or a fire department employee at this point. It's just not prudent," he said.
Several councilmen blasted the mayor for not including council in the planning or presenting his strategy to council ahead of his presentation at the library.
Councilman Lindsay Webb said it was disappointing the mayor did not report to their committee of the whole meeting yesterday morning.
"This is the quintessential breakdown in the strong mayor form of government," Ms. Webb said. "I think it relates quite frankly to how the mayor does business."
Some of Mr. Finkbeiner's proposals, including the tax credit and the change to the trash fee, will require council approval.
Robert Reinbolt, the mayor's chief of staff, acknowledged the need to work with the 12-member council.
"We all have to recognize this is subject to city council and we are not saying we are done today," Mr. Reinbolt said. "The plan will plug the hole once it's approved by council."
Contact Ignazio Messina at:
imessina@theblade.com
or 419-724-6171.
Permanent Link
|
|
 |
|
Search
advertisement
