Article published November 25, 2008
Rainy day fund off limits for Toledo budget
Capital improvement money eyed by mayor
By IGNAZIO MESSINA
BLADE STAFF WRITER
Toledo Mayor Carty Finkbeiner yesterday said he expects 2009 to be another financially challenging year and, because of that, will not tap into the city's rainy day fund to balance the potential $10 million deficit for the 2008 operating budget - a decision that could mean sacrifice in other ways.
"There could be even more layoffs in the automotive industry and downsizing, which also affect spin-off businesses," Mayor Finkbeiner said.
The city's 2009 general operating fund budget required $21 million in cutbacks, and Mr. Finkbeiner approved using $2 million of the $6.4 million rainy day fund. But the rest is, for now, off limits, he said.
His plan to close the books on this year includes using money previously earmarked for capital improvement projects - such as nearly $1.1 million for Southwyck infrastructure improvements and $458,380 for Ottawa River dredging.
City Council today will take a look at almost $6.4 million in capital improvement projects dating back to 2000 for which the money was earmarked but never spent.
The mayor wants council to reallocate that money toward balancing this year's operating budget - which ran into the red when income tax collections fell well short of expectations and spending outpaced revenues.
Included in Mr. Finkbeiner's plan to balance this year's budget is a three-day partial governmental shutdown tomorrow, Dec. 26, and Dec. 31.About 1,200 city employees were to be laid off on the three days, but an agreement reached Friday in Lucas County Common Pleas Court in response to a request for a temporary restraining order filed by the city employee unions significantly decreased the number.
Police, fire, and other essential employees are exempt from the three-day layoff.
Mr. Finkbeiner yesterday said he preferred measures like the shutdown over more layoffs. His 2009 budget calls for about 40 layoffs.
"There seems to be acceptance by some to lay off rather than spread the pain across a greater number of people," he said.
Some councilmen speculated last week the mayor would use some of the remaining $4.4 million from the rainy day fund to help balance the budget.
Councilman Lindsay Webb, whose district includes the Point Place peninsula neighborhood, wants to maintain funds that already are designated for the $5 million Ottawa River dredging project.
"Although balancing the budget is a priority, money set aside for nearly 10 years should not be used to make up for current budget deficits, especially considering the positive economic effect of using the money as intended," Ms. Webb said.
"I understand the sense of urgency for the Toledo budget. But if the mayor is able to take the money away from this project, it will never become a reality," Ms. Webb said.
The city has $1.2 million saved for the project, she added.
A 1999 Ohio State University Sea Grant Extension study found dredging of the Ottawa River would have an immediate impact of $5 million for the Point Place community, Ms. Webb said.
But Mr. Finkbeiner disagreed and said that money must be used to balance the budget.
The decision ultimately will be up to council next week when seven votes would approve the plan.
Other capital improvement project money slated to be used for the 2008 budget includes:
•$76,783 for pool improvements.
•$67,650 for fire department mobile radios.
•$29,039 for improvements to Winterfield Park in South Toledo.
•A total of $474,400 for 2005, 2007, and 2008 development incentive funds.
Contact Ignazio Messina at:
imessina@theblade.com
or 419-724-6171.
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