BG braces for impact of rising inflation on city budget

Bowling Green City Council meeting Monday evening.

By JAN LARSON McLAUGHLIN 

BG Independent News

The City of Bowling Green’s budget has recovered from COVID-19, with income tax revenue rebounding in 2021 and again this year.

“Today is tax day, so next quarter will be a better indicator,” but so far, so good, said City Finance Director Dana Pinkert last month.

“2020 is that odd year we’re going to be hearing about for many years,” Pinkert reported during her quarterly update to the finance committee of Bowling Green City Council.

But it’s still not smooth sailing, especially with the inflation being seen across the nation.

“Everybody knows about the inflation,” Pinkert said. Over the last year, the all items index increased 8.5% before seasonal adjustments.

The biggest hit to Bowling Green will likely be in fuel costs, she said.

Supply chain issues are also causing problems. The city is unable to purchase new vehicles, and capital and operating purchases are seeing increases. 

“It’s not doom and gloom, but we do have to keep in mind the inflation,” Pinkert said.

The city budgeted for higher gas rates, she added.

“I’m optimistic about what we budgeted,” she said. “I’m optimistic the city can handle it.”

Council member Greg Robinette, who is chair of the finance committee, said city government can help by “growing jobs” and increasing the tax base.

As an aftermath of COVID, City Council voted last month to transfer $20,000 in American Rescue Plan Act funds to the Parks and Recreation Department for pool expenses.

In March, the Parks and Recreation Board agreed to ask City Council for a minimum of $16,000 from American Rescue Plan Act funds to help meet increasing costs at the pool. The funds will help keep the city pool budget afloat this summer  – and keep pool patrons from having to pay more.

The pool budget took some hits during COVID, and is now seeing increased operating costs. The board was faced with the options of keeping pool rates the same in hopes that more people patronize the pool this summer – or increasing seasonal pass or daily rates.

But then the possibility of using COVID relief funds was suggested by Mayor Mike Aspacher. The board agreed to ask for the ARPA funding, rather than increasing rates for pool patrons.

By using COVID relief funds, the park and rec board will have more time to gauge the post-COVID attendance trends at the pool, before making any decisions to increase seasonal pass or daily rates.

A “very, very conservative” estimate for pool expenses this summer shows it will cost the city at least $16,000 more to operate the pool, according to Kristin Otley, director of the parks and recreation department.

The biggest new expense will be from the 50 cent an hour increase in Ohio’s minimum wage to $9.30 an hour – expected to add about $9,000 to pool expenses. Though not all pool staff are paid minimum wage, the incremental increase will be seen across the board.

Then there is the cost of chlorine, which the city has been informed will cost an additional 41 cents per gallon. That will add an estimated $4,000 to the pool expenses. 

And there’s the concession supplies, which are predicted to cost 30% more than last year’s snacks.

The last time daily pool pass rates were increased was in 2019, when the board decided to raise the daily admission for non-residents by 50 cents. The pool rates are higher for non-residents of Bowling Green. 

The current daily rates for city residents have not been raised since the new pool facility opened in 2013, Otley said. The rates are $3.75 per child, $5.50 per youth, and $6 per adult.

A program is already in place to help families unable to afford season pool passes by cutting the cost to 50% of the normal rate. Last year a “splash fund” was created to offer additional help to local families.

“There’s that safety net,” Otley said in March. “We want to make sure kids in the community can use the pool.”