By JAN LARSON McLAUGHLIN
BG Independent News
Bowling Green’s city finances had a particularly sunny year in 2016 with rising income tax collections and a one-time overlap in receipts.
But the forecast for 2017 looks far less bright – with storm clouds looming in the near future.
“In 2016 we had a really good year,” council member Bob McOmber said Thursday during the final council meeting of the year. “We already know in advance that 2017 is going to be more challenging.”
McOmber forecasted “clouds on the horizon” that need to be addressed.
So as the new year rolls around, the city is looking for an umbrella – a plan to increase city revenues – in expectation of next year’s clouds.
The budget for 2017 lists revenue of $14,996,197 and appropriations of $15,623,253 – which means it has a deficit of $627,056.
On Thursday evening, City Council approved the appropriations for 2017. The city’s overall revenue continues to be flat, while costs continue to escalate. 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.
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.
Council member Sandy Rowland said the “clouds” looming over Bowling Green are no fault of city administration. “We know we have lost money – none of it under our control,” she said. “We’re doing an outstanding job with what we have.”
Municipal Administrator Lori Tretter warned earlier this month that if steps aren’t taken to cut costs or find new revenue sources, the problem will only get worse.
“We need a sustainable plan to bring our budget into alignment,” Tretter said.
So ideas to raise revenue will be a priority item for discussion in the new year.
City Finance Director Brian Bushong told council earlier this month 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.
Capital requests in the budget that made the list for funding in 2017 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.
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.
All the current city positions will continue to be funded, plus one additional park maintenance person. But 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.
Challenges facing the city include 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 for city employees are up for negotiation in 2017.
Earlier this month, Tretter reminded council 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.
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.
In other business at Thursday’s meeting, council:
- Heard the first reading a resolution adopting the Bowling Green Fire Division’s five-year strategic plan.
- Voted to support the Toledo Metropolitan Area Council of Governments’ efforts for emergency interconnection with neighboring water systems.
- Accepted the annexation of approximately 0.75 acres at 16415 Brim Road in Plain Township requested by Linda St. Arnaud. A second reading was given to an ordinance setting interim zoning for the property as R-2 single family residential.
