By JAN LARSON McLAUGHLIN
BG Independent News
Bowling Green Finance Director Brian Bushong almost hates to say it out loud – the city’s finances are looking better than predicted.
Like most fiscal officials, Bushong keeps his positivity in check. He knows the ray of sunshine the city is experiencing right now can quickly be wiped out by storm clouds of unexpected expenses.
Last week, Bushong gave Bowling Green City Council an update on how the city’s finances are shaping up for the year. The update came earlier than normal at the request of City Council President Mike Aspacher, who wanted the financial forecast to better help council set goals for the next year.
The forecast was sunny.
“So far 2019 looks better than we expected,” Bushong said on Thursday. “We are ahead in revenues in income tax and the general fund than we had budgeted for in 2018.”
But typical to his cautious character, Bushong added a caveat.
“Many of the things we are doing are big ticket items,” he said, listing off road repairs, delayed building maintenance, and the revision of the city’s zoning rules. On top of that, there’s the uncertain financial climate of the nation and the world, Bushong added.
So he is not predicting a “rosy outlook.”
Without being a Pollyanna, Bushong listed the positives of the city’s budget:
- Income tax receipts are ahead of the original revenue estimate by $521,000. The income tax fund is on track to exceed the original estimate of $20.2 million by nearly $800,000 by the end of the year.
- The general fund revenue to date is ahead of estimates by $495,611, or about 5 percent.
- The city is ahead in hotel/motel tax revenue and ambulance funds.
- Intergovernmental funds are up – including Local Government Funds from the state, which were severely cut a few years ago. “It’s still certainly down from where it has been,” but it is above the city’s projections, Bushong said.
- The Bureau of Workers Compensation has returned premium money – though Bushong was quick to point out that this is not ongoing revenue.
Bushong also pointed out the funds that are behind predictions for the year, including court costs, kilowatt tax, fines and forfeitures, and interest.
Road funds are on track, Bushong said.
“There’s been a lot of discussion about roads,” he said. “We certainly want to do more for roads.”
The statewide gas tax approved by Gov. Mike DeWine will bring an estimated $423,000 in new dollars to the city’s road fund a year. “That will go directly to roads,” he said.
The permissive motor vehicle license tax is expected to bring in about $90,000 a year for roads, starting in 2021.
“Unfortunately, that doesn’t go far when you’re trying to pave roads,” Bushong said.
Taking a hit this year is the parking fund – with that revenue down by nearly $100,000.
The city will lose out on an estimated $33,580 in parking meter revenue by expanding the parking holiday downtown to help businesses during the ongoing construction. The reduction in sale of permits, meter hoods, rentals and other reimbursements is estimated at $16,000.
The city is also predicting a $50,000 hit due to the Supreme Court ruling that parking enforcement cannot use chalk on tires to determine overtime parking violations.
The parking fund helps pay for maintenance of city parking lots, Bushong said.
However, since the city lost a parking technician staff member and will save on fuel and supplies, the city’s parking costs for the year dropped nearly $62,600. So that will offset the loss of revenue, bringing it down to about $38,000.
Bushong also explained that while the fiscal sky may look sunny know, it’s unknown what inclimate weather lies ahead:
- The city will be negotiating contracts with all five of its bargaining units in 2020.
- The city’s zoning regulations need to be overhauled – which could help the city bring in revenue, but which will cost the city to accomplish the update.
- Deferred maintenance on city buildings is looming in the future.
- Site evaluations will be done on the old senior center to see if the site can be converted into a new municipal building.
- More road work is necessary. “Everyone recognizes we want to work on roads,” Bushong said.
Then, of course, there are issues far beyond the city’s boundaries and control.
“What the economy holds for next year – that’s kind of a question,” Bushong said.
