The 1st Ohio District Court of Appeals released its decision this morning, just a few hours after one of the three judges who ruled against the retirees was reelected. Judge Pat Fischer, a Republican, was on the ballot Tuesday — and now there is no way to know whether the ruling could have had any adverse impact on his reelection bid.
The retirees, a group that included former City Clerk Sandy Sherman, contended their benefits could be increased, but that they were not subject to reduction. The appeals court scuttled the argument:
“At issue in this case is an ordinance enacted by the city council in 2009. The ordinance amended sections of the code pertaining to the retirement system. … After the 2009 ordinance, the plaintiff-appellants would have a deductible to $200 and out-of-pocket caps for healthcare and prescriptions of $2,000. The ordinance provided that the revisions to the retirement system would become effective on January 1, 2010.”
The appeals court said hospital and medical benefits were in addition to retirement pension payments and were not subject to vesting, which meant they could be changed by ordinance.
“The distinction between the retirement allowances and the healthcare benefits has been maintained throughout the existence of the retirement system. The distinction is significant,” the appeals court ruled.
The case could still be taken to the Ohio Supreme Court.
The following table shows the fund's assets, and the funding ratio, through 2010:
Cincinnati City Council's long-delayed vote on a resolution opposing Ohio Senate Bill No. 5 has been delayed again, this time at the request of the member who introduced it.
The streetcar project’s chances of survival grew on Thursday after Mayor John Cranley announced he’s willing to allow the $132.8 million project move forward if the annual operating costs for the streetcar are underwritten by private contributors.
But streetcar supporters might have as little as one week to provide assurances to Cranley that the operating costs can be underwritten by the private sector, given the federal government’s Dec. 20 deadline for up to $44.9 million in grants financing roughly one-third of the project.
Still, a representative of the Haile Foundation, a major private contributor to city projects, said private-sector leaders are already working on meeting Cranley’s offer and solving the issue.
The concern for Cranley — and even some streetcar supporters — is that annual operating expenses for the streetcar would hit the city’s already-strained operating budget, especially if the annual operating expenses are higher than the previous estimate of $3.4-$4.5 million.
Although the city wouldn’t need to pay for the full operating costs until the streetcar opens for service in 2016, Cranley and some council members are concerned finishing the project now would force the city to make payments it won't be able to afford in the future.
“We know the streetcar is a very expensive project,” Cranley said. “This community cannot afford a new, ongoing liability that goes on forever.”
Streetcar supporters argue Cranley’s view misses the streetcar’s potential for economic development, which could bring in more city revenues as more people move and work in the city.
The streetcar project would produce a 2.7-to-1 return on investment, according to a 2007 study from consulting firm HDR that was later verified by the University of Cincinnati.
Councilman Kevin Flynn, one of the two potential swing votes on council, said Cranley’s offer could provide “a way forward.” He previously told CityBeat that the operating costs remain a prominent concern for him because they could translate to cuts in the city’s budget, particularly to police and firefighters.
Eric Avner, vice president and senior program manager of community development at the Haile Foundation, called the deal “an olive branch” to streetcar supporters. He said he’s “very, very confident” the private sector will be able to find a solution.
“I don’t think we can solve it in a week. What I heard is he needs assurances,” Avner said.
Cranley said he doesn’t expect someone to come to city leaders next Wednesday with a check paying for 30 years of operating costs, but he said the commitment has to be serious and long lasting for the city to move forward with the streetcar.
Avner discussed bringing together a commission of private-sector leaders with some long-term assurances.
In what he described as an “organic” movement, Avner said he’s heard from various private-sector leaders that they want to keep the project going, but he claimed most of them don’t want to engage in a public “food fight” that could hurt their relations with the mayor and other city officials.
For Avner, it’s a matter of sticking to a project that’s already well into development and construction.
“We don’t have the luxury to waste that kind of money in this town,” he said.
Streetcar Project Executive John Deatrick on Nov. 21 told council members that canceling the streetcar project could save only $7.5-$24.5 million in capital costs after accounting for $32.8 million in estimated sunk costs through November, $30.6-$47.6 million in close-out costs and up to $44.9 million in federal grants that would be lost if the project were stopped.
After Cranley’s announcement, Councilwoman Yvette Simpson questioned Cranley’s motives and said the solicitation might be very difficult to meet in just one week.
Cranley said he’ll reach out to the Federal Transit Administration to try to get an extension, perhaps until the end of the year, on the deadline for federal grants.
“It’s obviously a huge, huge hurdle to try to pull this together in seven days,” Cranley said.
Cranley cautioned he wouldn’t be upset if his offer fell through. Flanked by union representatives for police, firefighters and other city workers, Cranley reiterated that his priorities still lie in basic city services.
Councilman P.G. Sittenfeld previously proposed setting up a special improvement district to pay for the operating costs. But Cranley called the approach unworkable because it would require property owners to opt in — an effort that would presumably take much longer than one week.
Cranley’s announcement came as streetcar supporters move to place a city charter amendment in support of the streetcar project on the ballot. The campaign vowed to gather 12,000 signatures by the end of the week.
In hopes of quashing rumors, City Council on Wednesday passed a resolution promising not to use Metro bus money on the streetcar.
The Southwest Ohio Regional Transit authority had voted Tuesday on an agreement with the city that contained a provision saying money from the $42 million transit fund that pays for bus operation can’t be used on the streetcar.
The agreement needs to be signed by the city as well in order to release millions of dollars in federal grants to help fund the streetcar. The city has pledged to match those grants with local funds. SORTA wants to make sure the transit fund isn’t used for that purpose, but the city wants to have the freedom to use that money on any transportation project.
At least one council member questioned the necessity of passing the resolution.
Chris Seelbach said that nobody on council or in the city administration had proposed or would propose using transit money on the streetcar.
“I don’t understand why we would need a provision in any contract that would make us not be able to, when nobody’s proposing that we do it,” he said.
The resolution has no legal standing preventing council from later coming back and using transit funds for the streetcar, but Qualls said she hoped it put citizens’ minds at rest regarding their intentions.
Mayor Mark Mallory on Monday published an editorial in The Enquirer promising that the transit money wouldn’t be used for the streetcar.
He went further on Wednesday and said during council’s meeting that he as mayor would never approve the use of transit money for the operation of the streetcar.
Council also passed a one-month budget for SORTA, requiring that they come back next month to pass another one.
Councilman Chris Smitherman accused Mallory of trying to flex political muscle in the budget to strong-arm SORTA into taking out the provision disallowing the use of transit funds for the streetcar. He questioned the timing of passing a SORTA budget the day after the transit authority voted to prevent transit funds being used for the streetcar.
Councilman Charlie Winburn — council's sole Republican — walked out of a Budget Committee meeting in advance of the vote.
However Councilwoman Yvette Simpson said it made sense to pass the one-month budget because it forbid SORTA from using taxpayer money to sue the city.
City Solicitor John Curp said it was SORTA’s position in the lawsuit that it should be the one deciding how transit funds are used, not the city.
In light of the Newtown, Conn., massacre, a City Council member wants metal detectors put back in City Hall.
Democratic Councilman Cecil Thomas says he’s always been concerned about security, and he hopes recent bouts of gun violence will make it clear more protective steps are necessary.
Thomas argues City Hall should not be an exception to a practice that’s carried out in other government buildings. He points to federal and county buildings and other city halls around the nation, which tend to use metal detectors.
Thomas, who was a police officer until 2000, acknowledges metal detectors are a “little bit of an inconvenience” to visitors, but he adds, “These are times when a little bit more inconvenience can go a long way to possibly save a lot of lives.”
So City Hall could get more security, but what about the city as a whole? Earlier today, Vice Mayor Roxanne Qualls announced City Council will work on a resolution to encourage Congress to pass new gun regulations at a federal level. Beyond that, Thomas says not much is likely.
The problem is state law trumps local law when it comes to gun regulations, so City Council’s hands are tied on the issue. “I would like to see us be able to control our own destiny as it relates to gun laws, but, obviously, I have no control over that,” Thomas says.
Metal detectors were in place at City Hall until 2006, when Mayor Mark Mallory had them taken down to make City Hall more open to the public.
Today’s installment of CityBeat’s questions for non-incumbent candidates for Cincinnati City Council is a follow-up to Thursday’s question.
In light of the recent budget showdown on City Council and the dispute about whether the Police Department should get an up-front, blanket exemption from the threat of layoffs, we asked, “Do you believe it’s appropriate to ask the police union for concessions in a time of deficits?”
Just a few months after the city avoided laying off cops, firefighters and other city employees, City Manager Milton Dohoney on Sept. 15 proposed restoring $26,640 in vehicle allowances that would subsidize car use for the city manager, the mayor and other director-level positions in the city administration.
City spokesperson Meg Olberding told CityBeat that restoring the allowances is a matter of basic fairness and keeping both the city’s word and competitiveness.
Olberding says car allowances are typically part of compensation packages offered in other cities that compete with Cincinnati for recruitment. The allowances, she explains, were also promised to city directors as part of their pay packages when they were first hired for the job.
“Cutting it reneges on their original offer and part of the pretense under which they took the job,” Olberding says, adding that failing to restore the compensation promises could make future potential hires reluctant to work in Cincinnati.
But given Cincinnati’s ongoing budget problems, some council members say the proposal is out of touch.
“Are you kidding me?” asked Councilman Chris Seelbach at the Sept. 16 Budget and Finance Committee meeting. “I just question the judgment of an administration that would make that kind of recommendation given our current financial situation. I’m offended that it would be even recommended.”
Even though City Council managed to avoid layoffs in this year’s budget, Cincinnati’s operating budget remains structurally unbalanced, which means the city will have to come up with new revenue or cuts to balance the budget in upcoming years.
Seelbach told CityBeat he doesn’t agree with the competitiveness arguments.
“I’m more concerned with the garbage worker who’s making barely enough to get by and would love to get a quarter-on-the-hour raise, much less a $5,000 car allowance,” he says. “If someone wants to leave their position when they’re making $100,000-plus because we’re not going to give them a $5,000 car allowance, I’m convinced we can find someone just as capable, if not more capable, that would be thrilled with a $100,000-plus salary with no car allowance.”
Still, Olberding points out that city directors often need to drive more than the typical worker, whether it’s to get to public meetings, in case of an emergency or as a natural consequence of being on call 24/7. She says that justifies what she sees as a small cost.
The restoration was tucked into a proposal from the city manager that restores more than $6.7 million in previous cuts by using revenue left over from the previous budget cycle. The car allowance portion is about 0.3 percent of the total proposal and less than one-hundredth of a percent of the city’s overall operating budget.
For some city officials, the issue gets to what they perceive as a disconnect between private individuals and the government: Although thousands of dollars might seem like a lot of money to the typical person, the sum is usually worth much less than a penny on the dollar in city budget terms.
But Seelbach says garbage collectors and other city workers who haven’t received a raise in years would be thrilled to split $22,000, even if the sum doesn’t mean much in total budget terms.
“It shows a lack of respect for the people who make this city work,” Seelbach says.
The proposal also comes shortly after a tense budget showdown and in the middle of an election year for City Council and the mayor’s office.
Dohoney repeatedly said throughout the past year that the city would have to lay off 344 employees, including 189 cops and 80 firefighters, if it didn’t lease its parking meters to the Greater Cincinnati Port Authority. The city ultimately avoided the layoffs without the parking lease by making cuts in various areas, including the city’s parks, and tapping into higher-than-expected revenues, but the city is still pursuing the lease to pay for economic development projects.
City Council will take up the restoration measures at a Budget and Finance Committee meeting on Sept. 24.
Updated at 4:09 p.m. with comments from Councilman Chris Seelbach.
Ohio Attorney General Mike DeWine is proposing training school staff and teachers to be first responders in the case of an attack. The news comes in the wake of the massacre in Sandy Hook Elementary School in Newtown, Conn., which caused the deaths of 20 children and six adults. CityBeat proposed its own solution in this week’s commentary: Make this time different by focusing on mental health services and gun control.
Cincinnati will lease Music Hall for 75 years to the Music Hall Revitalization Company (MHRC). The lease is part of a plan to renovate the iconic building to include more comfortable seating, extra restroom capacity, heating, air conditioning, improved plumbing and new escalator models. During the renovations, Music Hall will be closed for 17 months.
City Council passed a resolution promising not to use Metro bus money for the streetcar. The supposed conflict between the city of Cincinnati and the Southwest Ohio Regional Transit Authority (SORTA) is being drummed up by the media, but it’s really much ado about nothing.
Metropolitan Sewer District rates will go up by 5 percent in early 2013.
The Cincinnati Health Department is pushing
recommendations from a lead hazard study. The recommendations would
prohibit lead-based paint hazards and require all properties to be free
of lead-based paint, dust and soil. City Council is asking the health
department to carry out the regulations, and it expects from a plan and
timetable from regulators within 60 days. One study found getting rid of lead would do wonders for school performance
A Brookings Institute ranking placed Greater Cincinnati among the worst areas in the country due to falling home prices.
Cincinnati-based Fifth Third Bank agreed to a $16 million settlement in a securities fraud case. The four-year-old lawsuit was brought in the onset of 2008’s financial crisis, when the bank’s stock plummeted as it took several large writedowns.
Cincinnati’s Horseshoe Casino still needs to fill 450 positions in food and beverage, marketing, finance, security and more. A Washington Post analysis found casinos tend to bring jobs, but they also bring crime, bankruptcy and even suicide.
As expected, hydraulic fracturing, or fracking, is helping Ohio’s economy. The state has 39,000 jobs attached to oil and gas this year, and the number is expected to triple by the end of the decade. To take advantage of the boom, Ohio Gov. John Kasich says he will push his oil-and-gas severance tax in 2013. But the plan faces opposition from liberals and conservatives.
If Ohio Republicans tried to push “right-to-work” legislation, it would lead to a very nasty public fight, The Plain Dealer reports. Kasich and Republican lawmakers didn’t rule out using ballot initiatives to push conservative ideas like right-to-work in a press conference yesterday, but he did say he’s like a horse with blinders on, focusing on job creation.
The animal and robot takeover have been merged in the BigDog robot. It can now obey voice commands, follow and roll over.
The company in charge of building Cincinnati's streetcars says the city would incur substantial costs if it cancels the streetcar project after it's already gone through some construction and design work.
The Nov. 30 letter from CAF USA Vice President Virginia Verdeja to former Mayor Mark Mallory arrived just one day before Mayor John Cranley, who opposes the streetcar project, and an anti-streetcar majority were sworn in.
"CAF will have to recover all the incurred expenses as well as all the additional cost of cancelling the contract, which would be substantial too," Verdeja writes in the letter.
The letter explains that, on top of the sunk expenses on design work, cancellation would require CAF to pull back on various established deals with subcontractors, which would spur further costs.
For streetcar supporters, the letter renews fears of litigation that could crop up if the project were canceled and contractors decided to pursue their full payday. Those legal costs would fall on the already-strained operating budget that pays for day-to-day services like police and firefighters instead of the capital budget that finances big capital projects like the streetcar, according to city spokesperson Meg Olberding.
On Nov. 21, Streetcar Project Executive John Deatrick warned the costs of canceling the $132.8 million streetcar project could nearly reach the costs of completion after accounting for $32.8 million in estimated sunk costs through November, a potential range of $30.6-$47.6 million in close-out costs and up to $44.9 million in federal grant money that would be lost if the project were terminated.
Earlier on Sunday, hundreds of streetcar supporters rallied in Washington Park and walked the planned streetcar route in support of the project. They're threatening a referendum if the new City Council moves to pause or cancel the project.
City Council plans to vote on pausing the project on Monday. Because of threats from the federal government that a mere delay could lead to the loss of federal grants, streetcar supporters claim a pause would equate to cancellation.
Read the full letter below:
Updated at 6:13 p.m. with the PDF of the letter.