TOLEDO, Ohio — Toledo Mayor Wade Kapszukiewicz's 2024 city budget calls for eliminating 70 unfilled city jobs, graduating new classes of police and fire cadets next year, and transferring $24 million in capital fund money to balance the general fund.
The mayor delivered his budget proposal Wednesday, starting a roughly three-month process for city council to pass a balanced budget by March 31. The nearly $1 billion city budget must, by Ohio law, be a balanced one.
To get there, Kapszukiewicz said he needs to make cuts and move money around, keeping in mind what's important to Toledoans.
"A continued emphasis on police, fire, safety forces, road work and the core services that folks expect, want and depend upon," Kapszukiewicz said.
The mayor is proposing a $330 million general fund budget.
That budget includes funding for a police class of 40 cadets and a fire class of 30 cadets, the mayor said.
He also is proposing $80 million for the capital fund, with $27 million of that going to 102 residential street projects and 65 lane-miles of road improvements.
With $180 million in American Rescue Plan Act funds running out next year, the mayor said he has asked city departments to budget their wants and needs for council to review.
"We do anticipate that we're going to have decisions ahead of us that we need to make, so we're starting to make them now," Kapszukiewicz said. "We're not waiting for the ARP dollars to run out."
The administration also is proposing $34 million in cuts, including the elimination of 70 unfilled, funded positions, trimming $8 million from the budget.
At-large Councilman George Sarantou who is also the chairman of the finance, debt and budget oversight committee said he will be looking at whether the city can cut even more of those positions.
"I think we should look at additional positions," he said. "There may be 100 to 120 total positions that are unfilled."
$24 million capital fund transfer to balance general fund
Kapszukiewicz said he anticipates council will push back on his proposal to transfer $24 million from the capital improvement fund to the general fund.
He said Toledoans don't care about a transfer of funds like "inside the beltway folks, the inside baseball crowd" does, however transferring money from that fund would take money away from improvement projects that benefit the city and put it toward paying for the city's operating expenses.
"I think the transfer amount, it's the highest we've had," Sarantou said. "So clearly, I, and council will take a good look at that and see if that's really necessary. If we can bring in a few million dollars of revenue, by way of grants for example, or cut certain positions, that we do not need to fill, then we can really reduce that transfer."
At-large Councilwoman Katie Moline also has concerns about the transfer of funds.
"I think the $24 million is important because it's deferred," she said. "It's $24 million that could go to roads, it could go to improving fire stations, it could go to a lot of other capital improvements that will only get more costly down the road."
Moline also noted a concern about Kapszukiewicz dipping into the city's "rainy day fund" for more than $2.5 million.
"That's on top of $17.9 million in ARPA funding that will not be here next year and over $2.5 million in rainy day funds just to balance this year's budget."
The mayor admitted the city has a revenue problem but said it does not have a spending problem.
Asking voters to renew two income tax levies in 2024
To that end, he said he will introduce an ordinance to city council to renew two income-tax levies set to expire next year. The 0.75% income tax funds basic city services and the 0.25% income tax, which voters first approved in 2020, funds street projects.
"At the end of next year, both the 0.75%, which is the engine of the city, and the additional 0.25% for roads, they both expire next year," Kapszukiewicz said.
He said it is his hope by the Dec. 20 deadline, council will vote to put the two renewals on the ballot in the 2024 presidential primary.
The finance committee will meet on the budget Nov. 29. City council must approve a balanced budget by March 31.
More on WTOL: