Proposed 2017 Operating Budget Notes and Link

 

The 2017 Proposed Annual Operating Budget was provided to City Council for review and consideration as required on November 15. Please see notes below for overview comments and a link to the full document.

  • General Fund revenues and expenditures are both budgeted at $257,602,700. 

Note: Income tax revenue is the largest source (67%) of General Fund revenue. (See page 30)

 

  • The General Fund Budget reflects a total expense increase of only 0.6% over 2016.
  • Revenue projections are conservative and based on actual trends. There are no revenues budgeted from the sale of real estate.
  • There is one significant accounting change this year. The 2017 Operating Budget now reflects the City’s transactions related to the Toledo-Lucas County Health Department that previously have not been included. This change provides more transparency but adds $2.25 million to both the City’s revenue and expenses. When this $2.25 million is subtracted, it is clear that the City’s 2017 General Fund Budget increased just 0.6%, which is less than half the rate of inflation. 
  • This budget includes $500,000 for the Mill & Fill residential street repair program. Fortunately, due to lower asphalt costs this amount will generate the same tonnage allotment per council district as in 2016.
  • The City’s largest expenditure is for personnel. Based on contractual obligations, total personnel costs for 2017 are budgeted at about $169 million, an increase of 1.65% from 2016. These costs also account for a new police class of 40 and a new fire class of 30 to begin in December 2017. Public Safety continues to represent over 88% of budgeted positions in the General Fund. (See chart below)

Note: All other General Fund budgeted positions are less than 12%. (See page 30)

 

  • The budget for services, when factoring out the noted accounting change, shows a decrease of almost 3%. The budget for supplies is down 9%. These reductions reflect savings of more than $1.6 million compared to 2016.
  • The Budget has relied on CIP transfers because of significant reductions in state revenue sharing since 2008 (see chart below). The Proposed Budget estimates a transfer from the CIP to the General Fund of $11.5 million, slightly up from the expected $11.1 million in 2016. Remember these are estimates. In 2015 for example, $11 million was budgeted and just $9.5 million was transferred.

Note: The anticipated $8 million is state revenue sharing for 2017 is one third of the $24 million that was received in 2008. (See page 28)

  • We anticipate $2 million more to be available in this year’s CIP Fund due to increased revenue and debt reduction even with the budgeted transfer.

Please click here to see the 2017 Proposed Annual Operating Budget.

The City of Toledo Finance Department is pleased to answer budget questions and may be reached at 419-245-1648.