Councilman Chris Seelbach on Oct. 3 announced another concession in the ongoing city-county dispute over contracting rules for the jointly operated Metropolitan Sewer District (MSD).
At the heart of the issue is a federal mandate requiring Cincinnati to retrofit and revamp its sewer system. The project is estimated to cost $3.2 billion over 15 years, making it the largest infrastructure undertaking in the city’s history.
But Hamilton County commissioners have put most of the project on hold until the county resolves its conflict with City Council, which unanimously passed in June 2012 and modified in May “responsible bidder” rules that dictate how MSD contractors should train their employees.
Critics say the law’s apprenticeship program and pre-apprenticeship fund requirements put too much of a burden on nonunion businesses. Supporters claim the requirements help create local jobs and train local workers.
The city law requires bidders to follow specific standards for apprenticeship programs, which are used by unionized and nonunion businesses to teach an employee in a certain craft, such as plumbing or construction. It also asks contractors to put 10 cents for each hour of labor into a pre-apprenticeship fund that will help teach applicants in different crafts.
The concession announced on Oct. 3 would replace a mandate with an incentive program.
The mandate tasked contract bidders to prove their apprenticeship programs have graduated at least one person a year for the five previous years.
The incentive program would strip the mandate and replace it with “bid credits,” which would essentially give a small advantage to bidders who prove their apprenticeship programs are graduating employees. That advantage would be weighed along with many other factors that go into the city’s evaluation of bidders.
Seelbach says the concession will be the sixth the city has given to the county, compared to the county’s single concession.
The city has already added several exemptions to its rules, including one for small businesses and another for all contracts under $400,000, which make up half of MSD contracts. The city also previously loosened safety training requirements and other apprenticeship rules.
Meanwhile, the county has merely agreed to require state-certified apprenticeship programs, although with no specific standards like the city’s.
The five-year graduation requirement was the biggest sticking point in the city-county dispute. It’s now up to commissioners to decide whether the concession is enough to let MSD work go forward. If not, the dispute could end up in court as the federal government demands its mandate be met.
Cincinnati and Hamilton County today announced a compromise that will end the county's funding hold on sewer projects, allowing the projects to move forward. As a condition, the city will have to rework and repeal the controversial laws that incited county commissioners into approving the hold in the first place.
As part of the deal, Commissioner Chris Monzel will ask the Hamilton County Board of Commissioners to immediately repeal a hold on Metropolitan Sewer District (MSD) projects.
On the city's side, Councilman Chris Seelbach will ask City Council to immediately repeal so-called "local hire" and "local preference" rules, which require a certain percentage of contractors' workforce be local residents.
The city, county and their partners will then work on changing the city's responsible bidder ordinance before new rules are officially implemented on Aug. 1.
In May, City Council modified the responsible bidder ordinance originally passed in June 2012. The changes were supposed to trigger in August, but the compromise may alter those changes altogether.
Under the current language, the ordinance forces MSD contractors to establish specifically accredited apprenticeship programs and put money — based on labor costs — toward a pre-apprenticeship fund.
The city argued the programs will help create local jobs and train local workers, but the county criticized the rules for supposedly favoring unions and imposing extra costs on MSD projects.
Meanwhile, MSD is facing pressure from the federal government to comply with a mandate to retrofit and replace Cincinnati's sewers. MSD estimates the project will cost $3.2 billion over 15 to 20 years, making it one of the largest infrastructure projects in Cincinnati's history.
But the project was effectively halted by the county commissioners' funding hold, which forced the city and county to hastily work out a compromise.
CityBeat covered the county-city conflict in further detail here.
Is the race for Ohio secretary of state already underway? Ohio Sen. Nina Turner, who is considering a run against Secretary of State Jon Husted in 2014, says she will introduce legislation to protect voters against Republican efforts to limit ballot access. She also criticized Husted for how he handled the 2012 election, which CityBeat covered here. Husted responded by asking Turner to “dial down political rhetoric.”
Build Our New Bridge Now, an organization dedicated to building the Brent Spence Bridge, says the best approach is private financing. The organization claims a public-private partnership is the only way to get the bridge built by 2018, rather than 2022. But critics are worried the partnership and private financing would lead to tolls.
The Hamilton County Board of Commissioners threw out
a Metropolitan Sewer District competitive bidding policy yesterday. The
policy, which was originally passed by City Council, was called unfair
and illegal by county commissioners due to apprenticeship requirements and rules that favor contractors within city limits. Councilman Chris Seelbach is now pushing for compromise for the rules.
Believe it or not, Cincinnati’s economy will continue outpacing the national economy this year, says Julie Heath, director of the University of Cincinnati’s Economics Center.
Three Cincinnati-area hospitals are among the best in the nation, according to new rankings from Healthgrades. The winners: Christ Hospital, Bethesda North Hospital and St. Elizabeth Healthcare-Edgewood.
Democrat David Mann, former Cincinnati mayor and congressman, may re-enter politics with an attempt at City Council.
In its 2013 State of Tobacco report, the American Lung Association gave Ohio an F for anti-smoking policies. The organization said the state is doing a poor job by relying exclusively on federal money for its $3.3 million anti-tobacco program. The Centers for Disease Control says Ohio should be spending $145 million.
The Air Force is gearing up for massive spending cuts currently set to kick in March. The cuts will likely affect Wright-Patterson Air Force Base.
Dennis Kucinich, who used to serve in the U.S. House of Representatives, will soon appear on Fox News as a regular contributor.
For anyone who’s ever been worried about getting attacked by a drone, there’s now a hoodie and scarf for that.
Gov. John Kasich’s 2014-2015 budget plan is on the horizon, and it contains “sweeping tax reform,” according to Tim Keen, budget director for Kasich. Keen said the new plan will “result in a significant competitive improvement in our tax structure,” but it’s not sure how large tax cuts would be paid for. Some are already calling the plan the “re-election budget.” Expectations are Kasich’s administration will cut less than the previous budget, which greatly cut funding to local governments and education.
Chris Monzel is now in charge
of the Hamilton County Board of Commissioners. Monzel will serve as
president, while former president Greg Hartmann has stepped down to vice
president. Monzel says public safety will be his No. 1 concern.
City Council may vote today on a plan to build the first freestanding public restroom, and it may be coming at a lower cost. City Manager Milton Dohoney said last week that the restroom could cost $130,000 with $90,000 going to the actual restroom facility, but Councilman Seelbach says the city might be able to secure the facility for about $40,000.
Tomorrow, county commissioners may vote on policy regarding the Metropolitan Sewer District. Commissioners have been looking into ending a responsible bidder policy, which they say is bad for businesses. But Councilman Seelbach argues the policy ensures job training is part of multi-billion dollar sewer programs. Board President Monzel and Seelbach are working on a compromise the city and county can agree on.
The Hamilton County Board of Elections is prepared to refer five cases of potential voter fraud from the Nov. 6 election. The board is also investigating about two dozen more voters’ actions for potential criminal charges.
King’s Island is taking job applications for 4,000 full- and part-time positions.
Ohio may soon link teacher pay to quality. Gov. John Kasich says his funding plan for schools will “empower,” not require, schools to attach teacher compensation to student success. A previous study suggested the scheme, also known as “merit pay,” might be a good idea.
An economist says Ohio’s home sales will soon be soaring.
Debe Terhar will continue as the Board of Education president, with Tom Gunlock staying as vice president.
Equal rights for women everywhere could save the world, say two Stanford biologists. Apparently, giving women more rights makes it so they have less children, which biologists Paul R. and Anne Ehrlich say will stop humanity from overpopulating the world.
Ever wanted to eat like a caveman? I’m sure someone out there does. Well, here is how.
The rollback saves property owners $70 in taxes for every $100,000 of valuation. For the next two years they will be paying an extra $35 per $100,000 of their home’s value.
The money will be used to balance the stadium fund, which faces a $7 million deficit. The rollback reduction is expected to raise about $10 million. The board voted 2-1 for the proposal, with sole Democrat Todd Portune dissenting.
“The property tax rollback measure that has been advanced so far buys us only one year, and next year we will be doing the same thing we are doing today,” Portune said.
Portune favored raising the sales tax by 0.25 cents — to 6.75 — per dollar, which would have raised more than $30 million over 10 years. His proposal, which failed to receive any support, would have expired after the 10 years and gone up for review annually after the first five.
Portune said his proposal was more equitable. He said reducing the property tax rollback was going to affect only Hamilton County residential property owners, whereas a sales tax increase would affect everyone who spends money in the county, including visitors from neighboring Kentucky and Indiana.
Portune billed the tax increase as a long-term solution that would raise more than was needed currently but would keep the fund stable in years to come.
Board President Greg Hartmann, who authored the rollback reduction proposal, called Portune’s plan “a bridge too far.” He said it was too large of a tax increase and not a targeted approach to solve the deficit problem. He said he didn’t trust future commissions to allow the tax increase to expire.
Hartmann called the property tax rollback reduction flexible, scalable, clean, immediate and certain.
Commissioner Chris Monzel, who provided the deciding vote, said he didn’t like either and had to go against his principles with either choice.
“No way I walk out of this without breaking a promise. No way I walk out of this winning,” he said.
Monzel said he hopes that savings from the Affordable Care Act would allow the county to lower its property tax rates to make up for the rollback reduction.
Monzel also introduced a successful proposal that will include an annual review of the tax budget to make sure property taxes don’t change, a provision requiring parking revenue from The Banks to be used to develop The Banks and a directive for the county administrator to work with Cincinnati’s professional sports teams on concessions they can make to help out with the stadium funding burden.
Vice Mayor Roxanne Qualls will be formally announcing her run for the top spot in Cincinnati on Thursday.
Qualls’ campaign site has been up for some time already, and the vice mayor’s team had a meeting with political writers and bloggers on Nov. 26.
The vice mayor will be joined by current term-limited Mayor Mark Mallory, implying his support for her mayoral run. The event is taking place at 10 a.m. at Core Clay, Inc., a small women-owned business in Walnut Hills.
Qualls, who is endorsed by both the Democratic Party and Charter Committee, previously served as mayor from 1993-1999 after serving in Cincinnati City Council from 1991-1993. She returned to council in 2007.
Former city councilman John Cranley, also a Democrat, is also running for mayor. Cranley served on council between 2001 and 2007. His campaign will officially launch in January and former mayor Charlie Luken will serve as the honorary chair.
Republican Hamilton County Board of County Commissioners President Greg Hartmann is also considering a run for mayor, but hasn’t made a formal announcement.
Cincinnati has an open mayoral primary, which means that the top two vote-getters will run against each other in the general election, regardless of party affiliation.
Republican Ohio Treasurer Josh Mandel is hiring political workers and friends at his job again. His latest hires are Joe Aquilino, former campaign political director to Mandel’s U.S. Senate campaign, and Jared Borg, former campaign political coordinator. During the 2010 campaign for the state treasurer’s office, Mandel said, “Unlike the current officeholder, I will ensure that my staff is comprised of qualified financial professionals — rather than political cronies and friends — and that investment decisions are based on what is best for Ohioans.” Mandel’s spokesperson defended the hires by touting the treasurer’s accomplishments in office.
With a vote set for tomorrow, it’s still unsure how the Hamilton County Board of Commissioners will solve the stadium fund deficit, but it seems like both options require tax increases. Commissioner Todd Portune, the lone Democrat on the board, proposed increasing the sales tax by 0.25 percent. Board President Greg Hartmann, a Republican, presented an alternative plan that reduces the property tax rollback by 50 percent for two years, but he also said he’s not sure how he’ll vote. Commissioner Chris Monzel, a Republican, says he wants to find a plan that doesn’t raise taxes.
Either parking services are privatized or 344 city employees are laid off. That’s how City Manager Milton Dohoney Jr. framed budget talks to City Council yesterday. The city has already made drastic cuts since 2000, laying off 802 employees. Dohoney also pushed for repealing the property tax rollback promised as part of the stadium deal in 1996, but City Council does not want to raise taxes in the middle of a slow economy. The fact is any form of austerity will be painful, so City Council should be as cautious of spending cuts as tax hikes. A public hearing on the budget will be held Thursday at 6 p.m.
The city of Cincinnati’s plan to buy Tower Place Mall and the adjacent Pogue’s Garage in downtown is moving forward. The city offered to buy the mall and garage for $8.5 million in order to spur economic development in the area. The parking garage and half-empty mall are currently in foreclosure.
Cincinnati State is looking to expand.
One year later, the Ohio Department of Natural Resources hasn’t followed up on a court order to compensate flooded landowners.
The State Controlling Board approved three programs that will provide transitional housing and other services to the homeless. As part of the initiative, Habitat for Humanity of Ohio will receive $200,000, the Homeless Crisis Response Program will receive $12,680,700 and the Supportive Housing Program will receive $9,807,600 from the Ohio Housing Trust Fund.
Great numbers from November from auto companies could mean more hires.
A dissolving nanofabric could soon replace condoms for protecting against pregnancy and HIV.
Portune also gave ideas for possible adjustments to his sales tax proposal. He said commissioners could “sunset” the sales tax hike, essentially putting an expiration date on the tax increase. He also would like to see the sales tax hike reviewed on a regular basis to ensure taxpayers aren't being burdened longer than necessary. The idea behind possible time limits for both proposals is new revenues, perhaps from an improving economy or Cincinnati's new casino, could make changes unnecessary in the long term.
If anything came from the meeting, it’s that none of the commissioners like the position they’re in. Commissioner Chris Monzel, a Republican, said he had been placed “between a rock and a hard place.” Hartmann echoed Monzel, saying it was an “unenviable position.” Despite being the one to propose the hike, Portune said, “We’re left with two options that none of us like at all.”
Commissioners mostly repeated previous arguments during most of the meeting. Hartmann continued saying he was unsure how he would vote, but he said the two options presented are the only options left. He called Portune's plan “bold.”
Portune claimed the sales tax hike was more equitable because it spreads out the tax burden to anyone who spends money in Hamilton County, including visitors from around the Tristate area. In contrast, eliminating or reducing the property tax rollback would place the burden of the stadium fund exclusively on residential property owners in Hamilton County.
The property tax rebate and sales taxes are both regressive, meaning they favor the wealthy more than the poor. In simple terms, as income goes down, spending on goods and services take bigger bites out of a person’s income. A sales tax makes that disproportionate burden even larger.
One analysis from The Cincinnati Enquirer found
the wealthy made more money from the property tax rebate than
they were taxed by the half-cent sales tax raise that was originally
meant to support the stadium fund. For a previous story covering the stadium fund, Neil DeMause, a journalist who
chronicled his 15-year investigation of stadium deals in his book Field of Schemes, told CityBeat
the stadium fund’s problems stem from the county government making a
“terrible deal” with the Reds and Bengals.
Monzel said he will continue to try to find alternatives to raising taxes. On Nov. 28, Monzel told CityBeat he would rather keep the stadium fund balanced for one year with short-term cuts, including a cut on further investments in The Banks development, before raising taxes. In the long term, Monzel says commissioners could see if revenue from the new Horseshoe Casino and a possible deal involving the University of Cincinnati using Paul Brown Stadium would be enough to sustain the stadium fund.
The commissioners will vote on the proposals on Dec. 5.
County Commissioner Todd Portune is proposing a 0.25 percent sales tax hike to stabilize the stadium fund and preserve the property tax rebate promised to voters in 1996. The Hamilton County Board of Commissioners will have to approve the hike before it becomes law. It would raise the county sales tax from 6.5 percent to 6.75 percent.
Portune, the lone Democrat on the three-man board, says the county got to this point after years of problems with the stadium fund’s solvency culminated into one of two options: either the sales tax goes up or the property tax rebate is rolled back. He claims the two options are the only way to keep the stadium fund stable.
Portune says the 0.25-percent increase on the sales tax will hurt low-income families less than rolling back the property tax rebate. He reasoned the impact of the property tax rollback would focus on Hamilton County residents, including low-income families, while any hike in the sales tax is spread out on anyone who spends money in Hamilton County, including visitors from around the Tristate area. He also pointed out that essentials like food and medicine are exempt from the sales tax, which gives some relief to anyone trying to make ends meet.
On support from other commissioners, Portune says Board President Greg Hartmann agreed either the rebate has to go or the sales tax has to go up, but Hartmann could not be reached by CityBeat for further comment. This story will be updated if comments become available.
Update (Nov. 29, 4:25 p.m.): Hartmann called CityBeat after this story was published. He says he has not made a final decision, but he echoed Portune's comments by saying the
“reality of the situation” demands choosing between a sales tax hike or property tax rollback. If the commissioners take the latter option, Hartmann says only a partial rollback will be necessary to draw enough funds. He also cautioned that any one-time sales and spending cuts will not be enough to stabilize the stadium fund in the long term.
Commissioner Chris Monzel says he would rather keep the stadium fund balanced for one year with short-term cuts, including a cut on further investments in The Banks development before raising taxes. After the year is up, Monzel says commissioners could see if revenue from the new Horseshoe Casino and a possible deal involving the University of Cincinnati using Paul Brown Stadium would be enough to sustain the stadium fund in the long term.
The property tax rebate and sales taxes are both generally
considered regressive, meaning they favor the wealthy more than the
poor. In simple terms, as income goes down, spending on goods and
services take bigger bites out of a person’s income. A sales tax makes
that disproportionate burden even larger.
One analysis from The Cincinnati Enquirer found the wealthy actually made more money from the property tax rebate than they were taxed by the half-cent sales tax raise that was initially meant to support the stadium fund.
For a previous story covering the stadium fund, Neil DeMause told CityBeat the stadium fund’s problems stem from the county government making a “terrible deal” with the Reds and Bengals. DeMause is a journalist who has chronicled his 15-year investigation of stadium deals in his book “Field of Schemes.”
For the sixth year in a row, Hamilton County’s budget will be getting some cuts. The Hamilton County Board of Commissioners today approved $14.4 million in across-the-board cuts in a 2-1 vote, with Democrat Todd Portune voting no and Republicans Greg Hartmann and Chris Monzel voting yes.
The budget’s cuts will affect every county department, but they will not raise taxes. The plan will likely result in layoffs, according to the county budget office. The sheriff’s office is the least affected by cuts.
With a few revisions and tweaks, the plan is basically what Board President Hartmann originally proposed. Previously, Hartmann touted the budget plan by praising its “austerity” — a word that has lost popularity in Europe as budget cuts and tax hikes have thrown the continent into a double-dip recession.
Portune suggested an alternative plan that made fewer cuts and instead borrowed money against delinquent taxes.
By law, the county is required to balance its budget.