Toledo City Councilman Katie Moline said the long-term program is funded by short-term funding, creating a situation that could hurt Toledo in the future.
Toledo, Ohio — city of toledo‘s 2023 budget sets a red flag for long-term financial stability, said council member Katie Moline.
Moline, a CPA, said she has been talking to Toledo’s finance department since the new year and walked away from the conversation with many concerns.
The most worrying aspect of the budget, she said, is that the city has allocated at least $20 million in American Relief Plan dollars to repay the General Fund. However, the city withdrew $0 of that money from designated local financial recovery funds.
The money is not properly designated, creating a disproportionate budget that goes against the city charter, Moline said.
Additionally, as the budget uses federal funds, capital improvement funds, and emergency funds to balance its books, the city may run out of funds, be unable to budget, or have limited supplies within a few years. is dependent on the funds provided.
In total, Moline is concerned about $47 million.
Moline said the spending is creating a structural deficit. By not adjusting its financial projections for inflation, the city of Toledo is wasting more money than it actually is on long-term programs, causing higher-than-expected spending prices.
This issue has recently Residential road maintenance Projects for the year increased by 12.5% over forecast due to a surge in construction and supplies after the budget review was completed.
Moline said these budget issues were a serious mistake. If Toledo’s finance department doesn’t take the tough decisions and cut back on spending now, it will be forced to make nasty cuts in the years to come.
“As a city, as a city council, as citizens of Toledo, I don’t want to see us put in a position where we have to make very difficult choices and consider firing the fire department or the police.” she said. “We need to be vigilant now, so there will be no more painful, painful discussions like this in the future.”
So what’s the best precaution against this? City treasurers need him to rewrite the 2023 budget, Moline said. If not, she pursues further action.
If the city’s Department of Finance does not make significant adjustments to this year’s budget quickly, Moline will urge the city council to reject the budget and resubmit a balanced revised budget by the March 31 deadline. I said I would request it.
In response to Moline, city representatives issued the following statement to WTOL 11:
“ARPA dollars are used for their intended purpose: to invest in what our cities need and what our residents want.
Long-term investment strategies continue to build cities in which residents want to live, work and play. Since 2018, the city has not relied on CIP money transfers, except for his COVID year of 2020. ”
https://www.wtol.com/article/news/local/toledo-council/toledo-city-council-member-concerned-about-2023-budget-fallout/512-afa1e49c-2ccc-4ada-b0d8-95e824925924 Toledo City Councilors Concerned About 2023 Budget and Impact