Thurber's Thoughts is back!

photo via Wikia.com

First, please accept my apologies for being gone from regular blog posts for so long.

While writing for Ohio Watchdog, I channeled much of my "thoughts" into those articles. When that assignment concluded at the end of 2015, I decided to take a break. However, I accepted work on another project that had absolutely nothing to do with politics.

That commitment prevented me from devoting time to my blog, but that is also concluded so...

I'm back.

And boy is there a lot to say.

We can start with everyone's favorite complaint:  potholes and the state of Toledo's roads.

For over a decade, I've been warning anyone who would listen that transferring money out of the Capital Improvements Plan (CIP) fund and into the General Fund to pay for every day expenses was a bad idea.

Eventually, I explained, we'd run out of money in the CIP and wouldn't have anything left for capital items - like roads and other expenses with a life of five years or more.

Wouldn't you know it, I was right and that mess erupted in the first part of the year when Mayor Paula Hicks-Hudson and Toledo City Council decided to ask voters to approve an increase in the payroll income tax.

Fortunately, that measure went down to defeat - resoundingly.

But it hasn't solved the problem that the city doesn't have enough money for capital items because they've raided more than $110 million out of the CIP fund.

And it's not just this mayor. Every "strong" mayor had a hand in creating the problem: spending more than what they took in and spending money on non-essential items.

Want to know just how ridiculous things got?

In February 2012, Toledo City Council *discovered* they had about $1 million more in revenue than they budgeted. But they were planning to transfer nearly $12 million out of the CIP to balance the budget. So instead of reducing the amount of the transfer to $11 million, they decided to spend that $1 million extra instead.

And what did they spend it on? A new filing system for city council and a temporary employee; additional funds for demolition of houses; additional inspectors in code enforcement, even though the department said it didn't need any; an executive director to run the previously discontinued Toledo Youth Commission; and a consultant to create an Historic Preservation Plan.

The irresponsible spending continues while former Council finance committee chairman and current City Treasurer George Sarantou, Toledo City Council and the mayor try to find a way to come up with more income rather than find a way to cut spending.

You see, there's no where else they can cut.

(At least, that's the story.)

So that's how we started the year and now we're looking at a sweetheart deal for Promedica, the city and the Metroparks.

Prime waterfront property on the East Side across from The Docks has been sitting undeveloped for decades.  Various developers have come and gone and finally, Dashing Pacific Group bought it.

Their plan was to develop it with shops and housing and take advantage of the wonderful waterfront and the new road and light posts the city installed to help with development.  But they haven't done anything on it yet and the city had a clause in the sale that said it could buy back the property after five years.

And it should tell you something about Toledo when all the developers who've had a chance at this have failed to actually *develop* prime waterfront property.

We must be the only city in the entire country that can't make a go of prime waterfront property.

But back to the sweetheart deal...

The city really doesn't have the cash to buy back the property, so Promedica has agreed to purchase the property from Dashing Pacific.  They will hold it for a bit and then sell it (for the purchase price) to the Metroparks.

The Metroparks will then make this prime waterfront property a park.

Never mind that the Metroparks has two levies that property owners pay.  In fact, the most recent one in 2012 was a 10-year levy that was supposed to generate funds for developing new parks, maintaining existing ones and preventing budget cuts. How much do you want to bet that they'll need another increase when they purchase about 100 more acres and then want to make this prime waterfront property into a park area?

Something about this isn't quite right. Why does Promedica want to purchase the land only to sell it to the Metroparks?

Can't Dashing Pacific sell it to the Metroparks without a go-between?

If the city has the ability to buy back the land, why don't they do so, especially if they've got a willing buyer in the Metroparks?

Are there some restrictions with the funding sources used to clean up the property and install roads and street lamps that prevents it from going directly to another governmental entity like the Metroparks?

Inquiring minds....

And then there is the Southwyck property.  The mall sat unused for - well, no one really remembers how long because it was such a long time.  The city finally got the property from the owner, tore down the buildings and decided to market it as an open area for development.

Oh - and they borrowed money to do the demolition.

Now there is a buyer but the city is looking at a loss on the project. As one city councilman said - they didn't buy the land in order to make a profit...

But here's the thing.  They still have a loan and, according to various media reports, they (or rather you and I) are paying about $70,000 in interest every year on that loan.

So the city is going to pay off the loan with the income from the sale, right?

No - this is Toledo, so wrong!

The city isn't planning on paying off the loan but putting the money into the CIP fund. So you and I and every other taxpayer is going to continue to pay about $70,000 in interest so the city can spend that income elsewhere.

If you're wondering what they're thinking at city hall, see above story about the 2012 budget.

Sadly, this is par for the course.

So that's the start. Coming up I'll take a look at the absolutely insane Toledo ordinance that forces any company doing business with the city to have a union contract - even if they're a non-union company. Talk about forced unionization!  Here I thought it was the union's job to organize but Toledo's Project Labor Agreement ordinance actually puts the city at the bargaining table with project bidders and forces them to adopt a union contract.

That'll be a long post so I'll save it for Monday.

Is it time for an Ohio Financial Responsibility in Government Act?

I received the following press release about a bill that Rep. Lou Terhar wants to introduce in the Ohio House. It *sounds* good, but the devil is always in the details.

One detail extremely important to Toledoans is whether or not the language would allow the city to transfer funds from the Capital Improvement Plan (CIP) to the General Fund in order to cover their overspending - as in spending more than they take in.

Inquiring minds....guess we'll have to wait for the actual language, but if it would ban such a transfer, expect to see huge pressure from municipalities to defeat the bill.

Press Release:

Rep. Terhar Announces Financial Responsibility in Government Act

COLUMBUS—Rep. Lou Terhar (R- Green Township) announced today that he will soon be introducing legislation, the Financial Responsibility in Government Act, and that he will be seeking co-sponsors during the next ten days.

The proposed legislation will focus on financial requirements that would apply to three main areas:

1. All governmental subdivisions in the state will be required to operate their annual budgets without any deficit spending. The balanced budget requirement applicable to the state under the Ohio Constitution will also be applicable to all of the state’s political subdivisions.

2. Indebtedness undertaken by any political subdivision in Ohio must comply with the total indebtedness restrictions and funding requirements that are applicable to the State of Ohio.

3. All political subdivisions of the State of Ohio that sponsor any type of pension plan must comply with the actuarial requirements that are currently in place for the State of Ohio.

“The bankruptcy of Stockton, California and more recent filing in Detroit serve as reminders that we should not leave Ohio’s political subdivisions open to this type of potential budget crisis in the future. Municipal bankruptcies hurt not only the city, but also negatively affect the economic health of the region. State resources are stretched thin due to new unemployment claims, added health care costs and a whole host of social services. We in the legislature have an obligation to protect our constituents,” said Representative Terhar.

“The state itself is required by the Ohio Constitution to balance its operating budget,” Representative Terhar continued. “It only makes sense that the political subdivisions of the state have balanced budgets as well. Therefore, I will be introducing legislation requiring Ohio’s political subdivisions to balance their budgets in the same manner as the state is required to balance its budget.”

An official bill has yet to be released but is expected to be introduced before the end of the legislative recess.


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Hey Toledo City Council: make donations with your own money, not the taxpayers'!

Does Toledo really have money to burn?

Would you like to make a donation to the African American Legacy Project?

The majority of Toledoans have probably never heard of it, but here is a summary of the group from their web page:

a) Vision Statement
The African American Legacy Project (AALP) shall be the innovative multi-disciplinary epicenter, celebrating the triumph and spirit of the African-American experience. The African American Legacy Project exists to:
• Be a vehicle for raising the historical and present cognizance levels of African Americans in Northwest Ohio communities
• Be a motivator and promoter of community development
• Be a resource and repository for historic, current, and cultural inquiry
• Be an avenue for nurturing unity and the creative process

b) Mission Statement
The AALP pledges to stimulate the intellectual, socioeconomic and participatory growth in communities wherein African Americans reside

c) Statement of Purpose
The purpose of The African American Legacy Project is to bring together people who are interested in documenting and preserving the history of northwest Ohio’s African American communities and their impact and influence upon Toledo and the greater world community. Additionally, The African American Legacy Project will examine and record the socio-economic and cultural impact of African Americans for present and future generations of African Americans as we as the broader world society.
The primary function of The African American Legacy Project is to discover, document and preserve artifacts and historical information demonstrative, representative, and reflective of life, lifestyles and culture of Toledo’s African American community.

They are a 501(c)3 so all donations to them are deductible and they have a link on their site to donate, as well as a long listing of supporters/sponsors for their Easter Egg Hunt event earlier this year. They seem to be a good group - right? So how 'bout making a donation?

But Maggie, you say, I've got increased water and sewer rates, gas prices are still high and I have a tire to fix after hitting that huge pothole up the street that I know is there, but seem to forget until I actually land in it. I'm not interested in giving away my money to any group right now, no matter how worthy.

That's okay - because the City of Toledo just did that for you.

Last night every member of Toledo City Council except District 5 representative Tom Waniewski voted to give $20,000 of your tax dollars to this organization.

They voted the same way when it came to a request for $30,000 for the University of Toledo Urban Affairs Center, which already receives funding from the University. According to the ordinance granting the "donation," the Urban Affairs Center a valuable community resource.

In case you're not familiar with the UAC, here is their mission:

The Urban Affairs Center is an applied research unit of The University of Toledo and a member of the Ohio Urban University Program. The mission of the Urban Affairs Center is to enhance the economic vitality and quality of life of Toledo and its metropolitan region. We do this by identifying challenges and facilitating solutions in the areas of neighborhood, urban, and regional development.

UAC lists their community advisors which is a who's who of Democrat office holders, though it is outdated, and includes Republican councilman George Sarountou. Apparently, he didn't think it was a conflict of interest to vote to give money to a group he advises.

These donations came out of the city's General Fund - which is supposed to pay for everyday expenses like office supplies, salaries, etc...

Remember the Recreation Levy the Democrats on city council just had to have because they didn't have enough money to properly care for our parks?

And the transfers out of our Capital Improvement Budget in order to cover huge deficits in the General Fund?

At last count, they'd raided a total of $50 million from the CIP with another $12 million planned for 2012. Since the audit for 2012 isn't published yet, I don't have a final figure, but they planned to raid an additional $14 million for 2013!

They must believe they have money to burn.

This is not the role of city council - to take our hard-earned and limited tax dollars and give it to charities of their choice. They weren't elected to donate money to causes they deem worthy. They were elected to run the city and oversee the administration of the police and fire departments, the taxation department, and other necessary functions.

Here's the question no one asked, but I'm dying to know the answer to: how much of their own money have these city council members donated to these 'worthy causes'????

I've sent an email to them to find find out, and will share with you any response, but I'm not optimistic about getting an answer.

How much do you want to be the answer is $0?

Toledo claims $5.08 million budget surplus for 2012

According the following press release, the City of Toledo has completed their books for 2012 and is showing $5.08 million in surplus as of the end of the year.

What is not mentioned is whether or not any funds were transferred from the Capital Improvement Projects Fund (CIP) as planned in the original budget. The city originally budgeted a transfer of $12 million from the CIP into the General Fund to cover everyday expenses. If they transferred the full $12 million, it would bring the total amount diverted from the CIP to $62 million.

So if there is $5.08 million left over and the DID transfer $12 million, then they spent $7 million more than their income.

If they did NOT transfer any funds out of CIP and they've got $5.08 million left over, then they need to put that money back into the CIP to replace a small portion of the $50 million they've taken from the fund in the past several years.

I've emailed the city's public information officer to inquire about the CIP transfer. I'll let you know when I hear back.

Now that the year-end financials are finished, the auditors will review it and issue a final report.


Here is the press release:

Mayor Bell announces 2012 year end financials, $5 million fund balance anticipated

Mayor Michael P. Bell today announced the 2012 year end financials that have been sent to independent auditors for review and certification. Those figures include a report of income tax revenues totaling $158.5 million and an anticipated positive General Fund balance of $5.008 million.

“We’ve come a long way from where we started when I took office in 2010,” said Mayor Bell. “This city faced a $48 million budget deficit and that required us to make a lot of difficult and unpopular decisions over the last four years. If we had done nothing we would be in the same position as Detroit or Cincinnati. Instead we are seeing growth, increasing our safety forces, cleaning up neighborhoods and paving roads.”

The city faced a $48 million budget shortfall as Bell took office in 2010. Since that time, the city has worked to balance the budget and to restore the rainy day fund. Additionally, 165 police officers and 172 fire fighters will have been hired between 2010 and the end of 2013, more than the previous 12 years combined. The city in 2012 built a new fire station #6, and in 2013 will renovate fire station #3 and build a new fire station #12. More than 1,150 blighted structures have been demolished since 2010 to eliminate nuisances in Toledo neighborhoods.

In contrast, Detroit is facing bankruptcy and layoff of significant numbers in their safety forces. Cincinnati recently narrowly avoided police and fire layoffs after a one-time budget fix. Columbus in 2009 increased their income tax by 0.5% in order to restore services and forestall layoffs among safety forces. Toledo has not increased taxes or enacted mass layoffs under the Bell Administration. Unemployment in Toledo in January 2010 was 13.8% but has dropped to 8.4%; a net gain of approximately 4,500 jobs in the city.

The 2012 financials mark only the second time in a decade that the city’s General Fund ending balance has increased two years in a row. The city ended 2011 with a General Fund balance of $326,000. The strong financial position at the close of 2012 is attributed in part to income tax revenues coming in above budget and expenditure levels below budget.

In addition to the fire station construction, part of the City’s 2013 capital plan includes 61 lane miles of street repaving and reconstruction. Major street reconstruction is already underway on both Secor Road in west Toledo and Collingwood Boulevard in the central city. In total, $45 million will be invested in Toledo streets in 2013. Residential streets will comprise $10.5 million of that, or 22.8 lane miles. Due to the positive fund balance the Mayor has requested the Division of Engineering Services to compile recommendations for additional streets that could be addressed as part of the 2013 plan.

The 2012 financials have been submitted for review and await final confirmation from the independent auditor and the Ohio Auditor of State. Once certified they will be made available through publication of the comprehensive annual financial report. The city is projecting $163 million in income tax revenues for 2013, up from a 2009 low of $141 million, but still lagging from a 2007 high of $169 million.

###

Council District 6 budget town hall tonight!

FYI:

Tonight District 6 Councilwoman Lindsay Webb will host a budget town hall meeting from 6-8 p.m. at the West Toledo Library, 1320 Sylvania Avenue.

This is the last opportunity to ask questions and instruct your council on the 2013 City of Toledo operating budget.

Tomorrow, the council will hold a special meeting at 1 p.m. in council chambers to approve both the 2013 operating budget and the 2013-17 Capital Improvements Plan (CIP) budget.

Toledo taxpayers shafted (again!) in latest tit-for-tat over public employee wages

Yes, it's true - but sadly, not surprising that Toledo taxpayers are being stranded in the frigid cold as Mayor Mike Bell and Toledo city council engage in their own personal tit-for-tat over how much to pay their staffs.

To understand just how bad this really is, let's back up a bit.

The city has, for years, raided the Capital Improvements Plan budget in order to pay for everyday, general fund expenses. Going into 2012, they'd (legally) transferred a total of $50 million out of the account that is supposed to pay for major infrastructure improvements and roads - and used it to pay for things like office supplies, donations to local non-profits and pay increases for public employees.

They planned to continue stealing from the CIP for this fiscal year:

Faced with not enough income to meet their desire for 'more, more, more,' council has transferred (at last count) more than $50 million out of the Capital Improvements Plan fund (CIP) into the general fund to meet the everyday costs of the city.

So now council is going to start building back up the rainy day fund.

You'd think this was a good thing...but (there's always a but), they're still raiding the CIP to the tune of $12 million!

According to the city, the actual planned amount is $11,949,054, which does included $1.1 million originally unplanned, but approved by council yesterday to make up for the lack of revenue due to a delay in the opening of the casino.

Is there anyone else who fails to see the logic of this action?

They were patting themselves on the back for their plan to start building up the city's rainy day fund - which they depleted before they resorted to raiding the CIP - but they completely missed the point that they were taking another $12 million out of the CIP to do so.

And while they were at it, they decided to spend money they didn't have on a new director to run a previously eliminated department, a new filing system for their council offices and a consultant to create a Historic Preservation Plan.

Things went along normally for a while - or as normal as can be for Toledo, with politicians spending more than they take in, raiding the CIP and plotting ways to wring more cash out of the taxpayers.

Then Mayor Bell decided he wanted to increase the salary ranges for his administrative staff. He said he wasn't interested in actually giving pay increases; he just believed that the ranges needed to reflect current conditions.

Council balked.

Councilman Steve Steel, fearing that a pay scale increase would result in pay increases, went a step further and proposed a new ethics requirement for the mayor to "avoid any appearance of impropriety" or quid pro quo since many of these same administrators had contributed to the mayor's campaign.

In what can only be described as a political TKO, Bell came up with his own ethics proposal that applied not just to him, but to council as well.

But Mayor Bell has trumped Steel - handily - in submitting a new ordinance for a council vote.

While it is already illegal for individuals to solicit contributions from public employees in the classified service, Bell's ordinance would make it illegal to solicit and/or accept contributions from current city employees (not just those in the classified service), members of current employees' family and/or the bargaining units that represent city employees.

I'd call this game-set-match for Bell.

Needless to say, the entire subject was dropped.

But city officials were still crying poverty - so much, in fact, that Steel and Councilwoman Lindsay Webb decided Toledo just had to have a brand new, 10-year property tax levy to pay for parks and recreation. Steel and Webb pushed the tax increase and were soon joined by the mayor. They promised it would benefit seniors and kids and - believe it or not - reduce crime.

The bribes even included a new water park.

But a funny thing happened along the way to the ballot box. Maybe Bell didn't really want that new levy to pass. How else to explain his sudden announcement that he was giving pay increases to more than 50 staff members, totaling $295,000 a year?

Surely if the city had a third of a million dollars lying around, it didn't need a levy for parks, right?

Council was not amused, though Republican Councilman George Sarantou, Chairman of the Finance Committee actually justified the expense by claiming the city was expecting a $900,000 surplus.

Yes, you read that correctly.

Now the city has a budget surplus? I thought they had no money to pay for parks and recreation?!?

And how did we get this surplus? Did we NOT raid the CIP fund as they planned? Did they repay the advance they took on the CIP when the casino didn't open in time?

Have they thought that maybe reimbursing the $50 million or so they previously raided from the CIP might be a bigger priority to citizens than "valuing" administrators that have better pensions, vacation time, holidays and pay than they do?

But council doesn't like to be outdone, especially when some of the council members have aspirations to sit in the mayor's seat. Hence the latest tit for tat between council and the mayor. After all, it's only fair to retaliate against mayoral raises with raises of your own, right?

In response to Mayor Mike Bell’s across-the-board salary increases in October for 55 administrators and lawyers — a move that will cost the city $295,000 more a year — Toledo City Council has given a pay bump to four officials it controls.

Council voted 9-1 to increase the salaries of the council clerk, assistant clerk, city auditor, and plan commission director by 8 percent. But those four employees will lose their 5 percent “pension pickup” by the city, netting a 3 percent increase overall.

Councilman D. Michael Collins, who pushed for the compensation changes before council approved them last week, said it was the fair thing to do after the mayor boosted salaries an average of 9.8 percent, with no adjustment, for administration officials whose pension payment plans are still covered by the taxpayers.

Throughout all of this back and forth, spending, raiding the CIP and concern for the self-esteem of public employees, the taxpayer has been ignored.

Rarely has anyone mentioned, much less thought about, the out-of-work Toledoan who is footing the bill for this excess and political gamesmanship.

The taxpayer gets shafted while politicians maneuver for personal gain and engage in childish "I'll show you" antics.

Meanwhile, for 2013:

Toledo Mayor Mike Bell presented the 2013 budget today and it plans to raid $13.96 million from the Capital Improvements Plan (CIP) fund while spending more money on parks and recreation.

Happy New Year, taxpayers!

Toledo 2013 budget to raid another $14 million from CIP

Toledo Mayor Mike Bell presented the 2013 budget today and it plans to raid $13.96 million from the Capital Improvements Plan (CIP) fund while spending more money on parks and recreation.

Despite the rejection of a levy to support parks and recreation, the city will allocate approximately $175,000 more in the 2013 budget to support recreation activities for Toledo residents.

Yes, you read that correctly. They don't have enough income to cover the existing expenses, but they're going to spend MORE money on recreation - clearly an unnecessary expense.

If they raid the CIP this year as planned and divert another $14 million in 2013, we will have lost $76 million out of the CIP simply to pay for overspending in the general fund.

And there are no plans to ever repay these funds at all.

Here is the press release:

Bell administration releases 2013 operating budget

Recovery remains slow but steady, lost state revenues hamper growth

Mayor Michael P. Bell today released the City of Toledo’s 2013 proposed operating budget at a press conference that included his finance staff, safety force leaders and top administrators. The Mayor made clear that 2013 will pose fiscal challenges, but acknowledged that the city remains on a slow and steady path to economic recovery.

The 2013 proposed budget continued a commitment to public safety with additional police and fire classes. The Toledo Police Department currently has a class in the academy and will offer a police officer civil service exam on December 1, 2012. The exam will provide a new list of candidates, at least 45 of which will be selected to begin training in 2013. The Toledo Fire and Rescue Department will begin a new class of recruits on December 3, 2012 with a class of 30 to begin in 2013. The 2013 police and fire classes would not begin until current classes have completed their academy training.

The administration also maintained a commitment to quality of life issues affecting residents. Despite the rejection of a levy to support parks and recreation, the city will allocate approximately $175,000 more in the 2013 budget to support recreation activities for Toledo residents. The increase of 14% will support programs and staffing will remain steady.

The finance department is forecasting approximately 3.4% growth in income tax revenue over 2012. The budget anticipates nearly $163.9 million in revenue from income taxes supporting total general fund revenues of $243.5 million. The city will however be negatively impacted by the loss of local government funds and estate taxes shared from the State of Ohio as well as a significant decrease in property taxes paid to the city, following the countywide revaluation issued by the county auditor. If the levels for the Local Government Fund, property taxes and estate tax were the same as in 2011 a CIP transfer would not be needed. The lost revenues represent approximately $14.7 million. The administration expects to transfer approximately $13.96 million from CIP to the General Fund.

Despite the need for CIP transfer, the administration is expected to present a proposed capital budget in December recommending $32 million in major street and residential road construction and resurfacing, representing approximately 51 lane miles. The 2012 CIP budget allocated $28 million for streets. Funding will additionally be allocated for renovation of the existing Fire Station #3 and to build a new Fire Station #12 in order to address a gap in coverage in the northern part of the city. A request for proposals has been issued for the design of the two fire station projects.

“When I took office in 2010 the city faced a deficit of $48 million,” said Mayor Bell. “We faced the unthinkable prospect of having to lay off police officers and firefighters. This budget presents a far different story. We’ve continued to hire police and fire, held the line on taxes and fees, are providing the quality of life services our citizens deserve and have reestablished our rainy day fund.”

The mayor also recognized Toledo City Council for their diligence in passing the 2012 budget by the end of January and asked that council and the administration again work together and move swiftly to solicit community input, hold committee hearings, and pass the 2013 budget in January to provide department directors greater opportunity to monitor their budgets early in the year.

The City of Toledo Charter requires that the mayor present to City Council a proposed budget by November 15 each year. Also by charter, council has until March 31 to pass the operating budget.

The City of Toledo operating budget will be available online at www.toledo.oh.gov.

###

Toledo council keeps spending while raiding another $12 million from CIP

Among other things in the 2012 Toledo budget Toledo City Council passed Tuesday is a commitment to put $150,000 into the rainy day fund.

This fund, also known as a budget stabilization fund, was depleted years ago because our mayors and council members just couldn't stop spending.

Faced with not enough income to meet their desire for 'more, more, more,' council has transferred (at last count) more than $50 million out of the Capital Improvements Plan fund (CIP) into the general fund to meet the everyday costs of the city.

So now council is going to start building back up the rainy day fund.

You'd think this was a good thing...but (there's always a but), they're still raiding the CIP to the tune of $12 million!

According to the city, the actual planned amount is $11,949,054, which does included $1.1 million originally unplanned, but approved by council yesterday to make up for the lack of revenue due to a delay in the opening of the casino.

Is there anyone else who fails to see the logic of this action?

Why not just leave that money in the CIP? Why not just cut the budget to live within the existing revenue? (Heaven forbid!)

Actually, what makes it worse is that, based upon some updated projections, council decided it actually had about $1 million more than it had budgeted. But instead of reducing the amount they planned to take out of the CIP, they SPENT IT!

Despite having cut the position from prior budgets in order to save money, they voted to spend $57,350 on an executive director to run the previously eliminated Toledo Youth Commission. Wow - we've survived how long without that entity and someone to run it, but now it's a priority for extra spending?

The City Council also wants a new filing system - and a temporary employee. That cost us $40,000. One member wanted additional funds for the demolition of houses - add another $100,000. Council rep Paula Hicks-Hudson wanted two more inspectors in the code enforcement division (despite rumors that the division didn't want the extra staff). That was $103,000. And, not to be outdone, Joe McNamara decided we needed a consultant to create a Historic Preservation Plan. Chalk up another $30,000.

Don't we already have historical societies who can do that sort of thing?

Total extra costs on pet projects of the council members? $330,350. Just about the same amount that the new red light cameras are supposed to bring in - except that money is targeted for the recreation department.

And all of these things council just had to have now. This year. Right away.

Councilman Tom Waniewski asked members of council to maybe wait and not plan on spending the money now. He suggested that perhaps council wait to see if all projected revenue comes in as planned. Nope! Council was having none of it. They had money burning a hole in their collective pocket and it had to be spent.

It's a disgrace that no one suggested just not taking as much money out of the CIP.

$12 million. That's $12 million in road paving, sidewalks, equipment replacement, etc... that is, instead, going to cover every day expenses like copy paper, office supplies, salaries, etc.

These members of council have no shame. They just spend and spend and spend - even when they don't have to.

And some of these costs are continual. The new inspectors and youth commission director are not temporary jobs. These are positions that will need wages and benefits covered next year, and the year after that, and the year after that - unless future councils actually decide that cutting spending is the only option left.

But the day they have no other choice but to cut may be closer than they think.

Just prior to yesterday's council meeting where they voted in favor of the extra spending - as well as the $12 million raid on the CIP, they held a press conference and urged citizens to again approve the 3/4% temporary payroll income tax.

They said the $51 million that the tax raises is critical to the city and doom and gloom will result if we don't approve the tax on the March 6 ballot. But then, they always cry poverty when the tax is up for renewal, going so far as to say there was 'nothing left to cut' when it came to prior budgets.

The 'stuck-on-stupid' action of asking for a tax renewal while spending anticipated (not even actual - just anticipated) extra funds instead of setting them aside or - gasp! - not spending them at all, defies logic, reason and common sense. And it's a perfect example of the hubris of our council members who just don't understand how to say 'no' to spending other people's money.

Maybe a defeat of the 3/4% payroll income tax is the message they need.

So when you vote on March 6, remember that your city council spent money it didn't have to, depleted the rainy day fund and has raided the CIP by about $62 million (running total), refusing to stop spending while telling you that you must make sacrifices to pay for the excess.

Vote no on the 3/4% payroll tax until city council members understand that they need to 'just say no' to spending.

Toledo CIP - source of all for everything - is running dry

In his State of the City address today at the Toledo Rotary (viewable here), Mayor Mike Bell said he wants to restructure the Capital Improvement Plan funds in order to borrow $28 million for street paving in 2012 and 2013.

The problem is that Toledo City Council has decimated the CIP fund over the past several years in order to cover general fund - or every day - expenses. This has left us with virtually nothing in the CIP to cover the necessary CIP expenses like road repair.

Council transferred funds because they just couldn't find anywhere to cut, despite funding things like Easter Egg hunts, hip hop concerts, arts projects and a host of other unnecessary (though desirable by some) items. In fact, tomorrow they will vote on transferring another million because revenue they expected from the new casino isn't yet coming in due to a delay in the casino opening.

Despite warnings that routinely relying upon the CIP to balance the general fund would lead to shortages in the long-term, council continued to do so.

Now we are faced with borrowing $28 million to cover our necessary expenses because there's nothing left. Interestingly, this will be the highest amount of debt issued since 1998 - more than twice the $13.5 million that was issued in 2003.

Toledo transferred out $7 million in 2011 to cover the 2010 budget deficit. They depleted their rainy day fun years ago. I believe the last time I added it up, it was around $50 million that had been taken out of the CIP and transferred into the general fund to cover every day expenses.

If council had just lived within its means and not transferred the money out of the CIP, we wouldn't have to borrow anything in 2012-13 to pay for road repaving.

But since Toledo voters approved letting council raid the CIP, there is no incentive for them to not do so. They spend the money knowing they can just raid the CIP to cover their pet projects and special programs, expecting to let future councils deal with the consequences.

Fortunately, the 3/4% payroll income tax will be on the ballot this year and Toledoans will have a chance to tell council "NO!"