By JAN LARSON McLAUGHLIN
BG Independent News
Bowling Green will usher in the new year looking for some new ways to bring revenue into the city coffers.
While income tax revenue is up, the city continues to take hits from interest revenue, intergovernmental funds, estate tax losses, and the end to its cable franchise income. Local government funds shrank from 18 percent of the general fund a decade ago, to 7 percent now. Interest revenue slipped from 6 to 3 percent of the general fund.
“That is somewhat eye-opening,” said Municipal Administrator Lori Tretter, as she reviewed the city budget with council and department heads on Wednesday. “That makes us somewhat vulnerable” with 50 percent of the budget now coming from income tax revenue.
So overall revenue continues to be flat, while costs continue to escalate.
In fact, the budget lists revenue of $14,996,197 and appropriations of $15,623,253 – which means it has a deficit of $627,056.
Tretter warned that if steps aren’t taken to cut costs or find new revenue sources, the problem will only get worse.
“The revenue in the general fund has been flat for a number of years,” and additional revenue isn’t likely unless the city identifies other sources, she said.
“We need a sustainable plan to bring our budget into alignment,” Tretter said.
Specific ideas to raise revenue were not presented at the budget meeting on Wednesday, but both Tretter and Mayor Dick Edwards said revenue generation will be a priority item for discussion in the new year.
“We need to get serious about having those discussions,” Council president Mike Aspacher said.
City Finance Director Brian Bushong told council that the deficit may not be as dire as it sounds. Historically, the city has spent 95 percent of its budget, and the income is usually a bit higher than projected.
“It’s not as bad as it seems,” Bushong said.
Council member Bob McOmber recalled during good economic years when the city’s year-end balance was as high as $4 million. During the recession, that balance dipped down to $1.9 million. And the city has minimal discretionary money in the budget, he added.
McOmber pointed out the end of estate tax revenues and the loss of half the local government funds that formerly helped the city’s budget. He expressed concern that the state may decide it wants the other half of the funding. “They sure took half of it away from us quick enough when they got in a bind with their own budget,” he said.
“Thank goodness the income tax revenues have been as strong as they have,” McOmber said.
Council member Sandy Rowland noted how the city has done well “in good times and in bad times” – maintaining services and providing safety.
“We just have to be vigilant on a constant basis,” McOmber said. “We’re all glad we employ a bunch of penny pinchers as department heads.”
In addition to the tight budget, the city faces some other challenges.
For example, in 2021, the city will have 27 pay weeks – a big drain on the budget that happens very rarely. But it requires a lot of planning ahead, so the city plans to shift $35,000 next year into a stabilization fund to prepare for that extra payweek.
Capital requests that made the list for funding include work on the municipal court roof; vehicle replacements for public works, police, fire and administration; tree trimming truck boom; and equipment such as a traffic sign maker.
But that was far from all the requests made.
“It’s never enough to fund all the needs,” Tretter said.
Unfunded requests included new positions of a code enforcement worker and an environmental educator, and replacement workers in public works. During the recession, the city cut costs by not replacing departing employees rather than laying off workers. But that has left some uneven staffing.
The city has given priority to staffing safety demands, which caused overtime costs to go up significantly. Three new police officers were hired to replace departing police staff last year and the position of deputy fire chief as been reinstated.
All the current city positions will continue to be funded, plus one additional park maintenance person.
Also not making the cut were refuse/recycling trucks which can cost up to $250,000, and some deferred maintenance items such as work on the aging boiler in the city building.
“There simply isn’t enough money to meet all the requests,” Tretter said, adding that the department heads were already “pretty thrifty” with their requests.
“A budget is essentially a balancing act,” Tretter said.
Another challenge is the need to repave the downtown parking lots that weren’t done this year. That may lead to an examination of parking rates downtown.
And all five union contracts are up for negotiation in 2017, she added.
Tretter reminded those at Wednesday’s meeting about some highlights from 2016 – the hiring of an arborist, work beginning on the Community Action Plan, passage of the park levy, paving of eight streets and one parking lot, accreditation of the police and fire departments, and continued discussion of Complete Streets and bike safety.
“We are careful stewards of city dollars,” she said.
Despite budget constraints, Tretter said 2017 “holds a lot of promise.”
During next year, the city plans to complete the Community Action Plan; continue work on the East Wooster Street corridor; offer direct homeownership assistance; work on bicycle safety; install downtown cameras for the police division; pave Conneaut, Fairview and possibly Napoleon Road; continue the 50/50 sidewalk program; and continue work with ODOT on the roundabouts at Interstate 75 and Wooster Street.
Tretter announced that ODOT had dedicated safety funding for two pedestrian crossings on East Wooster Street, one near the Stroh Center and one near McFall.
“We are very pleased to have that funding,” she said.
And Aspacher noted that despite the tight budget, the city is making progress on projects.
“We’re continuing some positive momentum on things we’ve been talking about for some time,” Aspacher said.
