Amended Proposed 2018 General Fund Budget

Wednesday, March 21, 2018

Toledo Mayor Wade Kapszukiewicz will ask Toledo City Council to consider an amended proposed 2018 general fund budget that was created by a joint budget task force consisting of council and the Kapszukiewicz administration.

The proposed budget reduces the transfer of capital improvement money to the general fund and begins to shift more federal Community Development Block Grant money that can be used for neighborhood projects.

The proposed operating transfer from the capital improvement fund to the general fund is $2.1 million – a $3.1 million decrease from the proposed 2018 budget presented to council in November 2017 and an $8.9 million decrease from the 2017 budget approved by council in March 2017.

The revised budget proposal cuts expenditures from the previously-proposed $258.22 million to $255.2 million – a $3,010,550 decrease.

The budget will be discussed today during a 6 p.m. Toledo City Council committee of the whole meeting.

The amended budget includes the following revenues changes, which increase operating revenues by $130,000:

  • A $100,000 increase in casino revenues to $5.8 million.
  • A $100,000 increase in building inspection revenues based on 2017 collections and anticipated development starting in 2018, including the Cliffs Natural Resources Inc. project.
  • A $55,000 increase in plan commission revenue based on 2017 revenue and proposed fee increases.
  • A $125,000 reduction in cable franchise fees.

The city’s 2.25 percent income tax is expected to generate $178 million in 2018 – a $1.6 million increase over 2017 collections. Property taxes are predicted to generate $12 million.

Intergovernmental services are predicted to generate $17.2 million. That includes $7.4 million local government money and the $5.8 million casino revenue. Charges for services are expected to total $29.9 million. That figures includes $11.8 million for solid waste and recycling collection; $6.9 million for advanced and basic ambulance revenue, and $2.7 million for cable franchise fees.

The amended 2018 budget includes the following spending changes:

  • A $241,173 reduction by moving the next police recruit class to July 27, rather than early July.
  • A $1,039,890 reduction by delaying the next firefighter class to 2019.
  • A $658,624 reduction in healthcare costs.
  • A $807,693 reduction by delaying filling vacant positions.
  • A $575,140 increase for city council, the mayor’s office, and the law department budgets for more staff.
  • A $86,625 reduction in spending for the police corporal stipends due to retirements that reduced 2018 expenditures.
  • A $300,000 reduction in the Toledo Municipal Court judges budget.
  • A $250,000 reduction in district improvement grant spending.
  • A $150,000 reduction in criminal justice costs for jail services.
  • A $144,398 reduction in municipal garage charges from salary savings in the city’s fleet operations.
  • A $20,000 reduction in postage costs for the taxation division.
  • An additional $65,649 will pay for economic development positions with general fund money rather than CDBG funding during the second half of 2018.
  • A $40,000 increase for the economic development department budget to pay for professional services.
  • A $10,000 increase in spending for an annual Ohio Municipal League membership.

General fund spending this year will include $111.6 million for base salaries and wages for 1,708 fulltime equivalent positions – a $945,580 decrease from the budget proposed in November. Overtime is expected to be $5.4 million, which includes $2.8 million for police and $2.4 million for fire. Fringe benefits and stipends will cost $52.2 million; salary savings and reimbursements will cost $2 million; supplies and services will cost $3.3 million, and contractual and internal service charges will cost $42.8 million.

The general fund debt obligation for closed landfills in 2018 will be $700,000.

Operating transfers total $39 million, under the proposed budget.

“By working hand in hand with Toledo City Council, we have produced a budget that is fiscally prudent while also meeting the service needs of the people of Toledo,” Mayor Kapszukiewicz said.

“While we still face some serious budget challenges on the horizon, there is no question we are moving in the right direction,” the mayor said. “We are not out of the woods yet, but this budget shows we are making the tough choices to protect the interests of the people.”

Mayor Kapszukiewicz said the amended proposed general fund budget frees up millions for road repair and infrastructure.

“This is the first of several important budgets we need to pass,” he said. “The capital budget is next and it is my goal to have that finalized and passed in the next month but the tough decisions and belt-tightening frees up millions for road repair and infrastructure.”

The mayor also plans to ask council to amend other funds that will include across-the-board healthcare and municipal garage savings.