by German Lopez
11 days ago
Posted In: Budget
at 10:31 AM | Permalink
Plan includes property tax hike, police and fire layoffs
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
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
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
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
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
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
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.
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