A budget plan proposed by two council members today would eliminate layoffs at the fire department and reduce the amount of police layoffs to 25, down from 49, by making cuts elsewhere, particularly by forcing city employees to take 10 furlough days in fiscal year 2014.
Council members Roxanne Qualls and Chris Seelbach are co-sponsoring the motion. If it's approved by City Council, the amount of city employee layoffs in the fiscal year 2014 budget would drop to 84, down from the original "Plan B" estimate of 344, by amending Mayor Mark Mallory's budget proposal, which was announced yesterday.
The news is being well received by public safety advocates, but it's also vindication for some of the city's harshest critics. Democratic mayoral candidate John Cranley previously said the city was acting like "the boy who cried wolf" by suggesting it had to lay off 344 city employees, including 80 firefighter and 189 police positions.
"In 2009, 2010, 2011 and 2012 … they threatened to lay off police and firefighters, and it never happened," Cranley previously told CityBeat.
But avoiding the layoffs comes with large cuts and shifted priorities elsewhere: Furlough days for supervisory and leadership personnel would be bumped up from five to 10 ($250,000 in savings), all council members would be asked to take 10 furlough days ($22,700), City Council's office budgets would be reduced ($18,000), the clerk of council's office budget would also be reduced ($46,000), the departments of community development and economic development would be merged ($171,000) and the account for firefighter's protective gear would be reduced ($100,000). In total, the cuts in the motion add up to $607,000.
The motion will be formally introduced at tonight's Budget and Finance Committee meeting, which will also act as a public hearing for budget issues. The hearing will begin at 6:30 p.m. at the Duke Energy Convention Center.
The layoff reductions come after the city manager and mayor spent a bulk of the past six months repeatedly warning that the city would have to carry out significant public safety layoffs if the city didn't lease its parking assets to the Port Authority. That plan would have opened up funds to help balance the budget for two years and pay for economic development projects, including a downtown grocery store ("Parking Stimulus," issue of Feb. 27).
But the parking plan is now held up in court, and the city is apparently able to avoid most of the layoffs despite the repeated warnings.
The city must enact a budget by May 31, which will give the city the required 30 days to implement the plan by fiscal year 2014, which begins July 1.
The Ohio Rights Group could be asking voters to legalize medical marijuana and industrial hemp statewide in 2013 or 2014. The Coalition for a Drug-Free Greater Cincinnati says drug approval should be up to the Food and Drug Administration (FDA), but that may not matter because polls so far shows medical marijuana getting widespread approval from Ohio voters. The Ohio Rights Group argues its amendment would help Ohioans by opening up better health treatments and boosting the economy. Whether that will be enough to land the issue on the ballot remains to be seen.
Mayor Mark Mallory revised the city manager’s budget plan
to carry out less layoffs but more cuts to outside spending and
recreation centers. Mallory's changes will restore 18 firefighter
positions, 17 police positions, three inspector positions at the Health
Department and two positions at the Law Department, reducing the total
layoffs to 161, with 49 of those being police positions and 53 being
firefighter positions. But it will come with more cuts to third-party
agencies, including the Greater Cincinnati Port Authority, the Center
for Closing the Health Gap and Cincinnati USA Regional Chamber of
Commerce, and two closed recreation centers. The plan will also use
about $500,000 in recently discovered revenue. Mallory said the layoffs and cuts have to be made in part because of multiple outside factors, including reduced state funding and courts holding up the city's parking plan.
The first hearing on the city's fiscal year 2014 budget proposals will be tonight at the Duke Energy Convention Center at 6:30 p.m. The public will be asked to give feedback on the budget plan put forward by the city manager and mayor, which would lay off 161 city employees, including cops and firefighters, to help balance the city's $35 million operating budget deficit.
CityBeat editorial: "Cincinnati's 1 Percent."
The Ohio Department of Transportation has raised its estimated price for the MLK/I-71 Interchange project by about $10 million to $30 million after meetings with business owners in Cincinnati's uptown area. It's so far unclear how the project's costs will be divided between the city, state and federal governments. Originally, Cincinnati was looking to pay for its share of the project through its plan to lease the city's parking assets, but that plan is being held up in court.
City Council approved a resolution yesterday supporting a statewide ban on injection wells used to dispose wastewater during the hydraulic fracturing — "fracking" — process, a drilling process that injects millions of gallons of water underground to unlock natural gas and oil reserves. The injection wells are a vital part of a fracking boom that has helped revitalize economies in Ohio and other states and could help combat climate change, but environmentalists and health advocates are concerned about the unintended consequences the wells could have on nearby water sources ("Boom, Bust or Both?" in issue of June 6, 2012).
The Ohio House approved changes to the state's third grade reading requirement that will relax standards teachers must meet to provide reading instruction and tutoring services for young students. The current law requires teachers to have taught reading for at least three years, but the bill approved by the Ohio House would eliminate that requirement.
The Hamilton County Board of Elections sent two more voter fraud cases to the prosecutor, but the question remains whether the dozens of people who filed provisional ballots and absentee ballots are actually in the wrong — an issue that will be ultimately decided by Ohio Secretary of State Jon Husted.
Ohioans, including CityBeat’s most dazzling staff member, apparently enjoy swearing.
Before the IRS harassed tea party groups, it harassed gay rights groups.
No further explanation necessary: "Police: Man used grenade to rob Hamilton bank."
Scientists have created the first cloned human embryo.
A new laser scanner can detect someone watching you from a kilometer away.
Mayor Mark Mallory announced revisions to the city manager’s budget plan today that will reduce the amount of layoffs by making several additional cuts, particularly in funding that goes to outside agencies, and using recently discovered revenue.
Mallory’s changes will restore 18 firefighter positions, 17 police positions, three inspector positions at the Health Department and two positions at the Law Department, reducing the total layoffs to 161, with 49 of those being police positions and 53 being firefighter positions.
To balance out the restored positions, the mayor is suggesting closing down two more recreation centers: Westwood Town Hall Recreation Center and Mt. Auburn Recreation Center. He is also suggesting cuts to the mayor’s office budget ($32,000) and outside agencies ($1.3 million), including the Cincinnati Center City Development Corporation (3CDC), the Greater Cincinnati Port Authority, the Center for Closing the Health Gap, the Cincinnati USA Regional Chamber of Commerce and the African American Chamber of Commerce.
Mallory’s revised budget plan also makes use of about $500,000 in revenue that was not located in time for City Manager Milton Dohoney’s budget proposal.
Mallory justified the cuts by saying public safety must come first, but he says he would keep the funding under better circumstances.
“The progress we have seen in our city cannot stand on its own without an emphasis on public safety,” he said.
The budget will have to be enacted by June 1 to give the
city 30 days to implement the changes before fiscal year 2014, which
begins July 1. It will now move to City Council, which will be able to make its own changes.
Mallory stressed that the city’s $35 million operating budget deficit is being driven by a few outside factors, including reduced state funding, court challenges holding up the parking plan and the recent economic downturn.
Gov. John Kasich has cut local government funding by about half in his state budget plans, which Dohoney estimated cost Cincinnati about $22.2 million in 2013 (“Enemy of the State,” issue of March 20).
The city was planning to make up for some of that lost funding by leasing its parking assets to the Port Authority and using the funds to help balance the deficit and fund development projects around the city, including a downtown grocery store (“Parking Stimulus,” issue of Feb. 27). But opponents of the plan, who say they are cautious of parking rate hikes and extended parking meter hours, have successfully held up the plan in court and through a referendum effort.
Cincinnati’s population has steadily decreased since the 1950s, which means the city has been taking in less tax revenue from a shrinking population. That was exacerbated by the Great Recession, which further lowered tax revenue as people lost their jobs and cut back spending.
Still, the city has run structurally imbalanced budget since 2001, according to previous testimony from Budget Director Lea Eriksen. The previous budgets were balanced through one-time revenue sources, but Dohoney told media outlets last week that, barring the parking plan, those sources have run out.
Mayor Mark Mallory will deliver his operating budget proposal to City Council today after making changes to the city manager’s proposal, which hikes property taxes and lays off 201 city employees, including cops and firefighters. City Council will then be able to change and give final approval to the budget plan before June 1. Some of the cuts may hit parks the hardest, but city administration officials are cautioning that they did not recommend the specific cuts being outlined, and it’s up to the Cincinnati Parks Board to decide which areas the cuts will impact. The city planned to help balance its $35 million operating budget deficit with the parking plan, but that plan is currently being held up in court.
The Greater Cincinnati Homeless Coalition is speaking out against the settlement to sell the Anna Louise Inn to Western & Southern for $4 million. “What has been served today is not justice nor moral on the part of Western & Southern, and we will push for a day when Western Southern recognizes their wrong-doings, asks for forgiveness and turns to doing good,” said Josh Spring, executive of the Homeless Coalition, in a statement. The group is asking supporters of the Anna Louise Inn to meet at the Mt. Auburn Presbyterian Church Friday at 6 p.m. to discuss further action.
City Council is likely to keep its ability to call votes on different items in larger ordinances and motions after seemingly failing to get support from six elected council members. Councilwoman Yvette Simpson, who proposed the changes, says the power is confusing because there’s no hard standard set for what is separable, but Councilwoman Laure Quinlivan, who has used the power before and supports it, says the rule retains choice and flexibility. City Council is currently reviewing many of its procedural rules, according to Simpson.
Ohio’s third grade reading guarantee was reworked by the Ohio House in part to relax standards for teachers. Previously, the law mandated teachers providing reading guarantee services to have taught the subject for at least three years, which critics of the law previously called “impossible to meet.”
The Ohio House is slowing down with its Internet cafe moratorium bill while the Ohio Senate works on its bill that would effectively ban the businesses altogether. State officials, particularly Attorney General Mike DeWine, have warned that Internet cafes are prone to criminal activity, but supporters say the businesses are just providing a demanded service.
The National Transportation Safety Board is recommending states strengthen drunken driving standards from a blood-alcohol limit of 0.08 percent to 0.05 percent.
Here is the science behind hating nails on a chalkboard.
The city manager unveiled his budget plan to solve the city’s $35 million operating budget deficit yesterday. The plan includes less layoffs than expected — particularly to cops and firefighters — but it proposes an increase to property taxes. The plan also includes a series of other cuts, including to all arts funding and subsidies that go to parades, and new fees. The release for the budget plan says many of the cuts could have been avoided if the city obtained revenue from the proposed parking plan, which is currently being held up by a referendum effort and court challenges. The operating budget is separate from the streetcar budget, which uses capital funds that can’t be used to balance the operating budget because of limits established in state law.
The budget plan still has to be approved by Mayor Mark Mallory and City Council to become law, and City Council will hear the public’s opinion before a vote at three public hearings: May 16 at the Duke Convention Center, May 20 at College Hill Recreation Center and May 22 at Madisonville Recreation Center. All the hearings will begin at 6:30 p.m.
Ohio House Speaker William Batchelder says he hopes the Constitutional Modernization Commission will produce a ballot initiative for redistricting reform in 2014. Politicized redistricting — also known as “gerrymandering” — has been traditionally used by politicians in power to redraw congressional district borders in a way that favors the political party in charge, but reform could change that. Gerrymandering was used by national and state Republicans to blunt losses in the 2012 election, as CityBeat detailed here.
As Ohio struggles to expand Medicaid, our more conservative neighbor to the south is moving forward. CityBeat covered the Medicaid expansion in Ohio, which the Health Policy Institute of Ohio says would insure nearly half a million people and save millions of dollars by 2022, here.
While some Democrats want to attach party labels to Ohio Supreme Court elections, Chief Justice Maureen O’Connor wants to do away with party primaries for judicial elections.
Former University of Cincinnati President Joseph Steger, the second longest-serving president at UC, died at 76 yesterday.
New York City could soon become the first major city to let non-citizens vote in local elections. The legislation would allow non-citizens to vote if they are lawfully present in the United States, have lived in New York City for six months or more on the date of a given election and meet other requirements necessary to vote in New York state.
When one simple question makes a huge difference: “When Did You Choose to Be Straight?”
Blood may be the key to seeing how long brain tumor patients have to live and whether their treatment is working.
A new study found oil from the Deepwater Horizon spill sickened fish for at least a year.
Here is a compilation of adorable animals trying to stay awake.
City Manager Milton Dohoney Jr. released his operating budget plan for fiscal years 2014 and 2015 today. The plan makes lower-than-expected cuts to police, fire and other city departments to help balance the $35 million deficit in the operating budget for fiscal year 2014, but it would also effectively raise property taxes.
The City Charter allows the city to leverage 6.1 mills in property taxes, but City Council only approved the use of 5.7 mills for the operating budget in 2014, up from 4.6 mills in 2013. The budget plan would leverage the full 6.1 mills in 2015, effectively raising annual property taxes between 2014 and 2015 by $34 for every $100,000 in property value.
Water Works rates would also be reworked with a new pricing structure, which would add $3.11 to a Water Works customer’s bill each quarter.
The budget plan recommends laying off 66 employees in the Police Department, down from a previous estimate of 149. Fire personnel layoffs were also reduced to 71, down from 118. In other departments, 64 would be laid off.
The budget release estimates the fire layoffs would lead to an estimated 10 brownouts a day in which one truck in a firehouse would not run.
About $20.4 million of the fiscal year 2014 budget gap would be closed by cutting expenditures, while the rest would be closed with changes in revenue.
The budget release says the cuts are a result of the city’s parking plan falling through in light of a referendum effort and legal challenges: “While the Manager’s budget, with support from policy makers, has typically centered on strategies for growth to expand the local economy, this budget is constructed in light of the lack of revenue from the Parking Modernization and Lease, approved by the majority of City Council but held up in litigation.”
With the reduced layoffs, the city will save money by paying less in accrued leave and unemployment insurance. Previously, city officials estimated it would cost about $10 million to lay people off, but that number was reduced to $3.5 million in the revised budget plan.
The budget plan would also eliminate 17 vacant full-time positions in various departments and delay filling other vacant positions, which the budget release says would cause some strain: “These vacant position eliminations and prolonged position vacancies would further challenge departments that have already experienced significant funding and position reductions in prior budget years.”
The plan would also increase employees’ cost share for health care from 5 percent to 10 percent, reduce cost of living adjustments and force furloughs, which would span to executive and senior level management positions, including the city manager. The changes effectively add up to a 1.9 percent salary reduction, according to the budget release.
Other cuts in the budget were selected through the Priority-Driven Budgeting Process, which used surveys and public meetings to gauge what city programs are most important to local citizens. About $1.7 million would come from personnel and service reductions in the Health Department’s Community Health Environmental Inspections programs, the Law Department and the Department of Recreation. Another $1.5 million would be cut from funding to outside entities, including human services agencies, the Neighborhood Support Program, the Greater Cincinnati Chamber of Commerce and the African American Chamber of Commerce.
Furthermore, subsidies for “Heritage Events,” such as the Findlay Market Opening Day Parade and St. Patrick’s Day Parade, would be eliminated, along with all arts funding.
The budget plan would also eliminate various other services, including the Bush Recreation Center in Walnut Hills, the Office of Environmental Quality’s Energy Management program and the Cincinnati Police Department’s mounted patrol unit.
The budget plan includes a slew of new fees: a $75 fee for accepted Community Reinvestment Area residential tax abatement applications, a $25 late fee for late income tax filers, a $100 fee for fire plan reviews, an unspecified hazardous material cleanup fee, a 50-cent hike for admission into the Krohn Conservatory and an unspecified special events fee for city resources used for special events.
The budget plan would also use casino revenue: $9.1 million in 2013 and 2014 and $7.5 million in 2015.
The city was originally planning to lease its parking assets to the Greater Cincinnati Port Authority to help balance the operating budget and fund economic development projects (“Parking Stimulus,” issue of Feb. 27), but the plan will be on the November ballot this year if court challenges are successful.
But if the city is successful in court, the budget release claims many of the cuts could be undone by using revenue from the parking plan.
The city manager’s office says the budget must be approved by City Council and the mayor by June 1 to provide 30 days for the budget’s implementation in time for fiscal year 2014, which begins July 1.
Previously, the city could have used an emergency clause to eliminate a 30-day waiting period for implementing laws, but City Solicitor John Curp says the court challenges have effectively eliminated the power behind emergency clauses by making all laws, even laws passed with an emergency clause, susceptible to referendum within 30 days.
The operating budget is separate from the streetcar budget, which is also facing a $17.4 million budget shortfall. The streetcar is funded through the capital budget, which can’t be used to balance the operating budget because of budgeting limits established in state law.
Today is primary election day in Ohio, but there are no ballot items in Cincinnati. Some Hamilton County precincts outside the city have ballot issues, which are listed here. Polls will be open between 6:30 a.m. and 7:30 p.m.
An amendment snuck into the budget bill approved by the Republican-controlled Ohio House would force universities to decide between providing the proper documentation for voting to out-of-state students or getting extra money from out-of-state tuition rates, prompting concerns from Democrats that Republicans are attempting to limit voting opportunities once again. Republicans spent a bulk of the lead-up to the 2012 election approving measures that limit voting, including a later-repealed set of laws that greatly reduced early voting hours.
About 82 percent of all Leadership in Energy and Environmental Design (LEED) certified buildings in Ohio are in Cincinnati, and the reason is likely local tax incentives, which allow Cincinnatians to eliminate property taxes for up to 15 years by retrofitting businesses and homes in an environmentally friendly manner. CityBeat covered Cincinnati’s successes in solar energy here and FirstEnergy’s campaign to weaken Ohio’s energy efficiency standards here.
If legislators fail to take up the Medicaid expansion, the issue could appear on the ballot on November 2014. Supporters of the expansion, including Gov. John Kasich, say the expansion will help insure hundreds of thousands of Ohioans and save the state money in the next decade, but Republican legislators say they’re concerned the federal funds backing the expansion will eventually dry up. CityBeat covered the Ohio House budget bill, which effectively rejected the expansion for the time being, here.
The Ohio Department of Transportation says 2,230 bridges in the state need repairs, but there’s not enough funding to make it happen.
Ohio banks are warning of possible cyberattacks that could happen today. The Ohio Bankers League and the Ohio Credit Union League said the attacks would impact online services but not the security of customers’ bank accounts.
The Cincinnati/Northern Kentucky International Airport has the second highest airfares in the nation, according to statistics released by the U.S. Department of Transportation’s Bureau of Transportation Statistics.
Cincinnati-based Procter & Gamble was ranked No. 7 in a ranking for top 50 most diverse companies by DiverseInc.
Sometimes human brains make people do bad things, such as enjoying high-calorie foods even when the foods aren’t delicious.
The First District County Court of Appeals heard arguments over the city’s parking plan and emergency clause powers today, with both sides making similar arguments as before
— except this time the city acknowledged it will probably have to move
forward with layoffs because the city only has a few weeks remaining
before it has to balance the budget for fiscal year 2014, which begins
July 1. The city claims it can use emergency clauses to expedite
legislation, such as the parking plan, by eliminating a 30-day waiting
period and the possibility of a referendum, but opponents argue the
wording in the City Charter doesn’t justify terminating referendum
efforts. If courts side with opponents, the city’s plan to lease its
parking assets to the Port Authority, which CityBeat covered here, will likely appear on the ballot in November, forcing the city to lay off cops, firefighters and other city employees instead of using the parking plan to help balance the budget.
It’s looking more and more likely that Cincinnati Police Chief James Craig will take the top police job in Detroit, despite Cincinnati officials asking Craig to reconsider. Previously, Councilman Charlie Winburn, the lone Republican on City Council, pushed city officials to do more to encourage Craig to stay, but City Manager Milton Dohoney Jr. said Craig’s motivations may be personal because his family resides in Detroit, a city that is in desperate need of a turnaround.
Ohio’s tea party groups are preparing to either split from
the Republican Party or punish Republican leaders for recent actions,
according to The Columbus Dispatch. Tea party groups have been particularly upset with Gov. John Kasich’s endorsement of the Medicaid expansion, which CityBeat covered in further detail here and here,
and Ohio Republicans’ election of Matt Borges, who once lobbied for a
gay rights group, as chairman of the Ohio Republican Party. Since the
2010 elections, tea party groups have kept political footholds in some
areas, but they have consistently lost favor with voters.
In case you missed it, here was CityBeat’s news coverage for the current week’s issue, which went online late because of Internet issues:
A portion of the Ohio House budget bill would make it more difficult for out-of-state students to vote in Ohio by forcing public universities to decide between extra tuition money and providing documents that students need to vote. Republicans say the rule is meant to lower tuition and prevent out-of-state students from voting on local issues they may know little about, but Democrats, backed by university officials, say the rule suppresses college-going voters, who tend to support Democrats over Republicans.
Ohio Senate President Keith Faber said there is no substantial Republican support in the Ohio House, Ohio Senate or governor’s mansion for so-called “right to work” legislation. The lack of support for the anti-union laws, which prevent unions and employers from making collective bargaining agreements that require union membership, may be linked to 2011’s voter rejection of Senate Bill 5, which would have limited public unions’ collective bargaining and political powers. S.B. 5 was one reason unions, including the Republican-leaning Fraternal Order of Police, supported Democrats in 2012.
Despite security concerns in the aftermath of the Boston Marathon, Sunday’s Flying Pig Marathon had a record 34,000 participants.
Ohio gas prices are trending up this week.
Now on Kickstarter: Genetically modified plants that glow.
As Ohio debates the Medicaid expansion, a new study from Harvard researchers revealed access to Medicaid in Oregon led to better mental health outcomes and reduced financial strain, but no short-term gains were found in physical health outcomes.
The study, which was released Wednesday by The New England Journal of Medicine, had its most positive findings in mental health outcomes, with Medicaid recipients showing 30 percent lower rates of depression in comparison to people without health coverage. Medicaid recipients had a rate of depression of 21 percent, while those without coverage had a rate of 30 percent.
But the gains did not apply to physical health outcomes. When looking at cholesterol, blood pressure and blood sugar levels, there was no significant difference between Medicaid recipients and people without coverage. The three measures were chosen because they typically reveal better health results within two years and they're easy to obtain.
Still, the study doesn't rule out the possibility of long-term gains. The study found increased rates of diabetes detection and management, which could lead to better physical health outcomes in the future.
Medicaid enrollment also reduced financial strain, allowed patients to use more preventive services and nearly eliminated catastrophic out-of-pocket medical expenses, according to the study.
The study was conducted by looking at Medicaid recipients in Oregon, which enrolled 10,000 people into Medicaid out of nearly 90,000 applicants through a lottery approximately two years ago, giving researchers the first major randomized pool of Medicaid recipients to study.
A previous study from Harvard researchers, including the lead author of the Oregon study, found that Medicaid expansions improved mortality rates, coverage, access to care and self-reported health. That study looked at three states that expanded Medicaid and compared them to neighboring states that did not.
The Oregon study comes at a time when legislators are debating whether Ohio should use federal funds to expand its Medicaid program. Even though Republican Gov. John Kasich supports the expansion, Republican legislators say they're concerned the federal funds will eventually dry up, leaving the state to find a solution for hundreds of thousands of new Medicaid enrollees. Democrats are joining Kasich in supporting the expansion, with Ohio Senate Minority Leader Eric Kearney recently calling it a "no-brainer."
The Health Policy Institute of Ohio found the Medicaid expansion would insure nearly half a million Ohioans and save the state money in the next decade.
The budget bill that recently passed the Republican-controlled Ohio House would forgo the Medicaid expansion while leaving room to consider further Medicaid reforms down the line ("The Chastity Bunch," issue of April 24).
City Manager Milton Dohoney Jr. released a memo yesterday detailing how the streetcar project's $17.4 million budget gap could be fixed by pulling funds from various capital projects and issuing more debt, upholding a promise he made at a contentious City Council meeting Monday.
The five-page memo says none of the proposed capital funding sources can be used to balance the city's $35 million operating budget deficit because of limits established in state law, which means the streetcar project is not being saved at the expense of cops, firefighters and other city employees being laid off to balance the operating budget.
"Neither Capital nor TIF funds can be used to help with the operating budget deficit that the City is facing," the memo reads. "They are separate sources of funds and by State Law, cannot be used for operating expenses like police and fire personnel."
At least $5.4 million would be temporarily pulled from the $10.6 million planned for the Music Hall renovation project, but the redirected Music Hall funds would eventually come back in capital budgets for fiscal years 2017, 2018 and 2019. City spokesperson Meg Olberding explained in an email that moving funds around would not hinder the Music Hall project.
"The use of $5.4 million of Funds set aside for Music Hall this year is money currently sitting in a fund for this year that will not be needed this year," she wrote. "Funds for Music Hall will not be needed until 2016, the agreed upon deadline for fundraising for the Music Hall renovation with the Music Hall Revitalization Company. Therefore, the City is still keeping its commitment to Music Hall, while also advancing the streetcar project."
About $6.5 million would be taken from infrastructure projects surrounding the Horseshoe Casino, including funds that would otherwise go to lighting the trees along Reading Road and a study that would look at adding a turn lane from Reading Road. The memo acknowledges the trade-off, but it also justifies the redirected spending: "However, since the Streetcar passes within two blocks of the Casino Site, it is a project within the Casino Area that both benefits the TIF District and the Casino."
The memo also recommends pulling $400,000 that was originally set for traffic signal replacement, which would be used for the traffic replacement component of the streetcar project.
Another $500,000 would come from funding currently set for water main relocation and replacement. The memo says the water main funding is simply Water Works' share: "Of the $21.7 million cost overrun for the Streetcar project, approximately $1 million was for water main relocation (and) replacement work. Water Works' share of this is $0.5 million."
The remaining $4.6 million would come from the city issuing general capital debt, which would be paid back through a small portion of the income tax that is established in the City Charter for permanent improvement purposes. The memo acknowledges this would cost other economic development and housing projects $340,000 a year over the next 20 years, but it claims the funding is justified because the streetcar project is a permanent improvement project.
The memo outlines other vague capital funding options that could be used to balance the budget, but Dohoney does not explicitly recommend them.
The memo also leaves open the possibility of future sources of funding, including $15 million that could be opened up if the city prevails in court against Duke Energy over who has to pay for moving utility lines to accommodate streetcar tracks — but this was money that was originally supposed to go to neighborhood development projects — and the sale of remaining city-owned land at the Blue Ash Airport.
City Council still has to consider and approve the memo's recommendations for them to become law.