Clock ticking towards potential City of Toledo shutdown

If a balanced bugdet isn't passed by midnight on March 31, the city of Toledo will run out of money by Friday.

No votes yet

When I interviewed Bell and Sarantou in February about receivership, both reiterated that Toledo will not run out of cash for many months. A $48 million deficit on a revenue stream of $202 million is less than 25 percent, which means that Toledo could conceivably run for 3/4 of a year before running out of money. Obviously expenses do not accrue that evenly, and revenues also follow patterns of peaks and valleys. Still, there is enough cash coming in to meet current obligations, and at least several months will have to pass before employees and vendors would receive delayed payments.

Also: the state would step in with emergency support if cash flow became a problem - it would be embarassing for the entire state to become known as a place where bills do not get paid.

If we had a budget (with the projected shortfall, which wouldn't be a legal budget) then cashflow won't be an issue til late summer/fall. BUT if they don't pass a balanced budget in the next 34.5 hours, Council will no longer have the power to pass monthly appropriations. Whatever funds remain from the Jan, Feb, March appropriations can be spent, but then that's it. Meaning shutdown would be imminent. Lacking a real accounting system they've been guessing as to how much is needed month by month. So the initial 3 months of appropriations may get us a few days into April.

Of course, they can pass a budget and then amend/alter it later which is what they'll do. But technically without a budget passed by Wed night, game over and likely no April payroll after the 1st.

See yesterday's Bell/Loukx memo to council:

I for one, am against increasing the trash pickup fee to $15 a month, and the double taxing of people who live in Toledo but work on the outside of Toledo.
The $15 fee would be unfair to many Senior Citizens who are receiving way less than the $1000 a month. In fact many seniors are only receiving between 600-700 a month. Many of these seniors worked at places that did not offer health insurance or retirement plans, and were paid whatever wage was state or fefderal mandated at that time.
As far as those who live in Toledo but work outside of the city, double taxing would be unfair. Many of the businesses and industries moved from Toledo to Perrysberg, Maumee, Swanton and other cities. The people who worked there chose to travel to the new location instead of simply taking layoff and applying for unemployment or welfare. (Jobs are scarce in Toledo,and many are only part time with no benefits.) Instead the city chose to penalize them for working out side of the city.
I think that it is about time that we start at the top. If former Mayor Carty could take a cut in pay then so should Mayor Bell. From what I've heard Mayor Bell is also collecting money for his retirement from the fire department. Also I do believe that we have others that could also take a paycut.
If the increase in trash fees and the double taxing passed, then how many more will flee the city of Toledo. If they do then how will the loss of these revenues be made up, or will those who have to or choose to be heavily taxed?

Mary Brandeberry

No thanks to the solcialist/"progressive" McNamara who voted in support of his union masters, against the budget. He might as well come out of the closet and admit that his true constituency is union, just as the 0bama administration is coming clean on their marxist agenda.

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