City Council’s Budget and Finance Committee today approved a plan to lease Cincinnati’s parking assets to the Port of Greater Cincinnati Development Authority in a 4-3 vote, but the plan will require five votes to become law in a final City Council vote on March 6.

Council members Roxanne Qualls, Yvette Simpson, Cecil Thomas and Wendell Young voted for the plan, and council members Chris Seelbach, Chris Smitherman and Charlie Winburn voted against it. Councilman P.G. Sittenfeld was absent, and Councilwoman Laure Quinlivan abstained, although she said she could vote yes if she sees more details about how the city will curb its long-term budget problems.

The plan, which CityBeat previously covered (“Parking Stimulus,” issue of Feb. 27), would lease the city’s parking assets to fund development projects, including a 30-story tower and a downtown grocery store, and help balance the deficit for the next two fiscal years. The deal would produce a $92 million upfront payment, and the city projects that additional annual installments would generate more than $263 million throughout the lease’s duration.

Before the vote, several City Council members said the parking plan would not solve Cincinnati’s structural deficit problems, but City Manager Milton Dohoney Jr. said the plan would help reduce the deficit by generating recurring revenues through long-term economic growth and development. 

“The situation that we’re in requires that we accelerate growth right now, not later,” he said. “If we do not do that, then we’re going to have further negative ramifications to deal with.”

Still, Dohoney admitted the plan would not solve all the city’s budget woes — just like he has repeatedly said in the past. Even with the parking plan, the city projects a $10 million deficit in 2014, $15.5 million deficit in 2015 and $20 million deficit in 2016.

The council members insisted there are alternatives to the parking plan and Dohoney’s Plan B, which would lay off 344 employees, eliminate Human Services Funding and close pools and recreation centers, among other changes. 

On March 1, Seelbach proposed Plan S, which would not lease the city’s parking assets to balance the budget and would instead use $7.5 million in casino revenue, cut $5 million based on the results of the city's priority-driven budgeting and allow voters to choose between a $10-per-month trash fee or a 2-percent increase in the city's admissions tax.

On the same day as the hearings, Winburn, the sole Republican on City Council, proposed Plan C, which would reduce city employees’ salaries across the board — with exemptions for police, fire, health, garbage, recreation, parks and road paving — and use casino and parking revenue to clear the deficit.

At the City Council hearings, Quinlivan listed a few other possibilities, including sharing public safety services with other local communities. She also advised the city to put together a long-term deficit reduction plan. “We don’t want to kick the can down the road any more,” she said.

Thomas suggested putting an earnings tax hike of 0.1 percent or 0.2 percent on the ballot. He said, “It would solve this (deficit) problem once and for all.”

Some council members also raised concerns about the release of bond documents, which will further detail the framework of the parking agreement. Dohoney and Laura Brunner, president of the Port Authority, said the bond documents have not been crafted because a lease agreement has to be approved by City Council first, but the documents will be made public once they are put together.

Before the final committee vote, Smitherman successfully motioned to separate part of the parking plan from the budget, which opens the plan to referendum. The motion was in response to City Solicitor John Curp, who said appropriation ordinances, or ordinances that are essentially budgets, aren’t subject to referendum, according to state law.

The company that would operate Cincinnati’s parking meters if the city passes its controversial parking plan this week was mired with audited problems and complaints in the past. The issues surfaced years before Affiliated Computer Services (ACS) was bought by Xerox in 2010, and Xerox now denies any wrongdoing.

A 2007 audit found ACS had failed to take care and keep track of parking meters it operated in Washington, D.C. The audit claimed 35 percent of parking meters listed in ACS’s inventory were missing, about 16 percent of the remaining meters were completely inoperative and 65 percent had problems that ranged from defacing to improper height and stability. ACS also failed to fix meters within the 72-hour period mandated by its contract, according to the audit.

For some residents, the broken meters led to unfair tickets, with 6,888 tickets, or nearly 1 percent of parking meter tickets, being improperly issued at unfixed meters, according to the audit. The audit also found a 903-percent increase in overall parking meter complaints under the privatization contract with ACS.

The audit also questioned the financial gains for Washington, D.C., which had to pay $8.8 million, or 33.4 percent, more under privatization than projected trends under public management.

The bad audit wasn’t enough for Washington, D.C., to cut its contract with ACS, which still manages the city’s parking meters today.

The audit was among a few other problems tipped to multiple media outlets by Tabitha Woodruff, an advocate at Ohio Public Interest Research Group. In 2007, ACS was accused of bribing police officers in Edmonton, Canada, but a judge ruled in favor of ACS, stating there wasn’t sufficient evidence. In 2010, the Securities Exchange Commission (SEC) charged ACS with backdating and falsely disclosing stock options between 1996 and 2005, and ACS consented to a permanent injunction without admitting or denying the charges.

All the discovered problems occurred before 2010, when Xerox bought ACS.

Kevin Lightfoot, a spokesperson at Xerox, says the audit’s findings were based on “faulty information.” He says Xerox and the District of Columbia Department of Transportation found ACS had saved Washington, D.C., money. He also claims the auditor had misunderstood the parking meters’ screen displays, which he says led to the improper identification of inoperative or malfunctioning meters.

CityBeat previously covered the parking proposal, which would lease the city’s parking assets to fund deficit reduction and economic development, in detail. Mayor Mark Mallory and Vice Mayor Roxanne Qualls have endorsed the plan, and it’s currently expected to have the five votes necessary to pass a possible City Council vote today.

On Friday, Councilman Chris Seelbach revealed Plan S, an alternative proposal that would not lease the city’s parking assets and would instead use $7.5 million in casino revenue, cut $5 million based on the results of the city's priority-driven budgeting and allow voters to choose between a $10-per-month trash fee or a 2-percent increase in the city's admissions tax.

City Manager Milton Dohoney Jr. also put forward his “Plan B,” which would lay off 344 employees, eliminate Human Services Funding and close pools and recreation centers, among other changes. In response, mayoral candidate John Cranley proposed his own plan, which would use casino revenue, parking meter revenue and cuts to “non-essential programs” to tame the deficit.

Plan B, Plan S and Cranley’s plan all fix the structural deficit in the city’s budget, while the parking plan only fixes the deficit for two years.

City Council may vote today on the controversial plan to lease the city’s parking assets to fund economic development and temporarily balance the deficit. On Friday, Councilman Chris Seelbach put forward Plan S, which would redirect $7.5 million in casino revenues, cut $5 million based on the results of the city's priority-driven budgeting and allow voters to choose between a $10-per-month trash fee or increase the city's admissions tax by 2 percent. Previously, City Manager Milton Dohoney unveiled Plan B to the parking plan, which would lay off 344 employees, eliminate Human Services Funding and close pools and recreation centers, among other changes. In response, mayoral candidate John Cranley proposed his own plan, which would use casino revenue, parking meter revenue and cuts to “non-essential programs” to tame the deficit. Plan B, Plan S and Cranley’s plan all fix the structural deficit in the city’s budget, while the parking plan only fixes the deficit for two years. The parking plan was unanimously approved by the Cincinnati Planning Commission Friday, and it appears five council members are ready to give the plan the go-ahead.

Members of Gov. John Kasich’s own party are beginning to show skepticism toward the governor’s budget proposal, which would expand the sales tax to apply to more services, increase the oil and gas severance tax and make more Ohioans eligible for Medicaid — mostly at the cost of the federal government. Republicans are likely to propose alternatives before a mid-April vote. In a Quinnipiac University poll, a majority of Ohioans approved of the Medicaid expansion but not Kasich’s tax plan. CityBeat covered Kasich’s budget plan in detail here.

Police are taking measures to prevent traffic problems at the Horseshoe Casino’s grand opening tonight. Meanwhile, Indiana casinos are preparing for downturns as the Horseshoe Casino promises a major alternative to tri-state gamblers. During the soft opening last week, Ohio’s casino regulator found the Horseshoe Casino would have to fix its security and surveillance before the grand opening. Previous studies found casinos bring job growth at the cost of crime, bankruptcy and even suicide, and a Dayton Daily News report also found the state’s casinos are falling short of job projections.

On Friday, the sequester, a series of across-the-board federal budget cuts, kicked in, and it could mean big funding reductions for Ohio’s schools. The blunt cuts are largely because Republicans refuse to negotiate with President Barack Obama and Democrats — to the point that Republicans don’t even know what the president is proposing.

The American Civil Liberties Union (ACLU) of Ohio is asking the state’s Department of Education to expand its seclusion room rules to apply to charter schools. Previous reports found seclusion rooms, which were originally intended to hold out-of-control kids until they calm down, have been largely used for convenience by educators, leading to stricter policies from the Ohio Department of Education. But the regulations currently apply only to traditional public schools, not charter schools.

Reminder: On top of putting everyone around you in danger, texting while driving will now result in a fine up to $150.

The Cincinnati Zoo has confirmed it has terrible taste in names with its choice for the new four-week-old gorilla: Gladys Stones. Still, the zoo does have that whole environmentally friendly thing going on. Maybe the pros outweigh the cons.

U.S. researchers are claiming they have “functionally cured” an HIV-infected infant after extensive treatments left the virus’s presence in blood at such low levels that it can no longer be detected by standard clinical tests.

Scientists are ostracizing what Popular Science calls the “world’s sexiest octopus.”

If you can watch BigDog, the four-legged robot, toss cinder blocks with ease and not fear the robot apocalypse, you’re not prepared.

The tone was negative once again in the final public hearing for the city manager’s plan to lease the city’s parking system. Of the two dozen speakers, only four were positive. Tabitha Woodruff, who is with the Ohio Public Interest Research Group, voiced mixed feelings about the plan: “As we feared it provides a short-term solution to a long-term budget problem, raises hours and rates on citizens, and has the potential to incur high transaction costs. … We’re encouraged, however, by the selection of a public entity, the Port Authority and by numerous proposed provisions of the lease intended to insure the city maintains control of details like rates and hours.” CityBeat wrote about the plan in detail here.

If City Council does not agree to lease Cincinnati’s parking system, the city manager’s office says the city will be forced to lay off 344 employees, including 80 firefighter and 189 police positions, and eliminate Human Services Funding, but critics argue there are better alternatives. Mayoral candidate John Cranley says casino and parking revenue and cuts to non-essential programs could help clear the deficit without the plan.

Gov. John Kasich’s job approval rating has risen above 50 percent for the first time, and he’s beating all the potential Democratic gubernatorial candidates in theoretical match-ups, according to a Quinnipiac University poll. CityBeat covered the governor’s budget plan, which will set the state’s policy blueprint for the next two years, here.

The Ohio House will vote on Kasich’s Ohio Turnpike plan today, which leverages the Turnpike for a statewide infrastructure program.

With the approval of Metro’s operating budget, City Council and Southwest Ohio Regional Transit Authority (SORTA) have ended their dispute over streetcar funding. Council members had been approving monthly budgets as they worked things out with SORTA, which manages the region’s bus system. SORTA filed a lawsuit disputing the limits of the transit fund, but it dropped the suit after the city said it will not use the money for maintenance of streets, sidewalks and streetlights. (Correction: This previously said the city will “only use the money for streets, sidewalks and streetlights” when the opposite is true.)

The Ohio Department of Education (ODE) says the state’s schools are making improvement, but they still “have room to grow.” In the latest state report cards, Ohio schools improved in 14 of 26 categories and met the state’s performance goal on 21 out of 26, with particularly strong gains in math and science, but ODE says, “The performance of Ohio’s economically disadvantaged students and minorities remains unacceptably low.”

The state auditor has a problem with how Ohio’s schools report data through what he calls a “just-trust-me” system.

The Hamilton County Board of Commissioners unanimously approved a 40-year agreement with the Cincinnati Center City Development Corporation (3CDC) that will lease the county-owned Memorial Hall and provide renovations to the 105-year-old building. County officials have long said the building, which is used to host concerts, shows and speaking events, is in dire need of upgrades, particularly overhauls to its roof, windows, facade work, floors, air conditioning and bathrooms — all of which will now be financed by 3CDC with the help of tax credits.

The commissioners also approved a two-year policy agenda, which generally outlines their plans for county finances and taxes, infrastructure and economic development.

The Over-the-Rhine Eco Garden could be forced to relocate if the city approves CitiRama’s development proposal. The move would be fully funded by the city’s Department of Community Development, with startup and relocation costs paid for.

Ohio’s concealed weapon carry permits reached record highs in 2012 with more than 76,000 permits issued.

Fewer Ohioans are starting their own businesses, and the state’s level of self-employment is one of the lowest in the nation, according to a report from Dayton Daily News.

With Cincinnati’s Horseshoe Casino set to open March 4, gambling addiction could be one of the downsides to the casino’s glitz and job creation, but extra funds for the state’s treatment programs and special training for casino employees could help combat the problem.

A medical marijuana amendment could be on Ohio’s 2013 ballot, but anti-drug groups are already speaking out against it.

Think the 114-year-old Japanese woman has reached an impressive age? Guffaw. Popular Science lists six much older animals.

If City Council does not agree to lease Cincinnati’s parking system, the city manager’s office says the city will be forced to lay off 344 employees, including 80 firefighter and 189 police positions, but critics argue there are better alternatives.

In a memo dated to Feb. 26, City Manager Milton Dohoney Jr. wrote that the city will also have to close three community centers and six pools; eliminate Human Services Funding, which aids the city’s homeless and poor; and reduce funding for local business groups, parks, nature education for Cincinnati Public Schools and environmental regulations, among other changes. In total, the cuts would add up to $25.8 million — just enough to balance the deficit that would be left in place without the parking plan.

In addition to the cuts, failing to approve the parking plan, which leases the city’s parking meters for 30 years and lots and garages for 50 years to the Port of Greater Cincinnati Development Authority, would displace plans to convert Tower Place Mall, construct a 30-floor tower with a grocery store downtown, accelerate the the I-71/MLK Interchange project, acquire the Wasson Line right-of-way for a bike trail and add $4 million to the next phase of Smale Riverfront Park (“Parking Stimulus,” issue of Feb. 27).

Democratic Vice Mayor Roxanne Qualls, who’s running for mayor, has come out in favor of the parking plan, but John Cranley, another Democrat running for mayor, says he opposes the deal because it will hurt downtown businesses.

“It’s the boy who cried wolf,” Cranley says. “In 2009, 2010, 2011 and 2012 … they threatened to lay off police and firefighters, and it never happened.”

Cranley says he would rather take $10 million from projected casino revenue and $7 million from current parking revenues to help clear the deficit. For the remaining $8.8 million, he would cut non-essential programs, which would exclude police, fire, garbage collection, health, parks and recreation, street pavement and Human Services Funding, across the board by 10 to 15 percent. If that wasn’t enough, he would then move to the essential programs, which he says make up about $300 million in the $368.9 million budget, with a 1-percent across-the-board cut.

He says his solution would have the upside of fixing structural deficit problems in Cincinnati’s General Fund, whereas the one-time lease of the city’s parking assets will only take care of the deficit for the next two years.

Meg Olberding, city spokesperson, says City Council could use the casino revenue to pay for the deficit, but $4 million of it is already set for the Focus 52 program, which funds neighborhood development projects.

“Council can use whatever revenue sources they want,” Olberding says. “That’s why the memo … says we can either use this plan or another plan.”

Cranley says he would not do away with the Focus 52 program, but he would instead find funding for it in the Capital Budget, which is separate from the General Fund.

Olberding says City Council could approve the use of about $3 million in parking meter revenue for the General Fund, but the rest of the parking money, which comes from lots and garages, is tied to an enterprise fund, which, by state law, means the city would have to sell its parking lots and garages before it could obtain money for the General Fund.

Cranley, who also opposes the streetcar project (“Back on the Ballot,” issue of Jan. 23), says it would be possible to pay for the I-71/MLK Interchange and other projects if the streetcar wasn’t taking up funds. If it was up to him, he says he would remove streetcar funding and use it on other development projects “without batting an eye.”

In the Feb. 27 City Council meeting, Vice Mayor Roxanne Qualls said the Budget and Finance Committee will likely vote on the city manager’s parking plan on March 4 or March 11.

The Hamilton County Board of Commissioners unanimously approved a 40-year agreement with the Cincinnati Center City Development Corporation (3CDC) that will lease the county-owned Memorial Hall and provide renovations to the 105-year-old building.

County officials have long said the building, which is used to host concerts, shows and speaking events, is in dire need of upgrades, particularly overhauls to its roof, windows, facade work, floors, air conditioning and bathrooms — all of which will now be financed by 3CDC with the help of tax credits.

“The public-private partnership between 3CDC and Hamilton County will result in the preservation of historic Memorial Hall without the use of taxpayer dollars for the improvements,” Commissioner Greg Hartmann, a Republican, said in a statement. “3CDC has an impressive track record with development projects in downtown Cincinnati and will be a great partner to manage this project.”

The partnership will also relinquish the county government’s operational funding for insurance and utilities for Memorial Hall, which cost the county about $200,000 annually.

In a statement, Hartmann’s office said the partnership with 3CDC “extends only to the renovations at Memorial Hall,” and the county will retain ownership and the final say over any increased programming.

The city of Cincinnati has repeatedly partnered with 3CDC, a nonprofit company, for projects at Fountain Square, Washington Park, the Vine Street streetscape project and ongoing developments throughout Over-the-Rhine.

A report issued by Director of Public Services Michael Robinson found Findlay Market would be the best place for a freestanding public restroom, which could cost as little as $35,000. The idea has been heavily pushed by Councilman Chris Seelbach, who has argued that the restrooms are necessary to accommodate a growing population and wider activity in Downtown and Over-the-Rhine.

A new Policy Matters Ohio report found local government funding has been reduced by $1.4 billion since Gov. John Kasich took office, leading to a nearly 50-percent reduction in state funding. Most of the cuts came from the elimination of the estate tax, which would have provided $625.3 million to local governments in the 2014-2015 budget, but it was repealed in 2011 by the Republican-controlled Ohio legislature and Kasich. When presenting his 2013 budget proposal, City Manager Milton Dohoney Jr. said the state funding reductions cost Cincinnati $22.2 million in revenues for the year.

In 2012, the team behind The Banks’ public construction met or exceeded all four major project goals, according to the annual report from The Banks Public Partnership. Contractors installed public safety technologies throughout the intermodal transit center and parking facility, awarded a trade contract for a new Pete Rose Way pedestrian bridge and walkway and prepared design and funding documents for a river walk along the Ohio River. The project has also gone more than 400,000 hours without a lost-time accident. The Banks previously won what John Deatrick, project executive, called the “Oscar” of planning awards, which CityBeat covered here.

City Council delayed a vote on opposing the sale of more than 700 Section 8 units in Avondale, Walnut Hills and Millvale because they want meet with the firm buying the units first. City officials have scheduled the meeting for next week. CityBeat previously covered Vice Mayor Roxanne Qualls’ opposition to the deal here.

The Ohio Environmental Protection Agency lifted a requirement that forced any new sewer development that added waste water to the county’s overall system to offset its gains with a fourfold reduction in storm water taken in.

BuzzFeed, the popular viral video and pop culture website, listed the Cincinnati Public Library as No. 28 on the list “The 30 Best Places To Be If You Love Books.”

Ohio’s imprisonment of fewer youth may be part of a nationwide trend.

Three Cincinnati area businesses made Interactive Health’s “Healthiest Companies in America”: Standard Textile Inc., Totes-Isotoner and American Modern Insurance Group.

Mercy Health’s Anderson and Fairfield branches made the Truven Health Analytics ranking released this week, putting the two hospitals among the nation’s best.

Omya Inc. is receiving a five-year, 40-percent tax credit for completing a consolidation of its regional headquarters to Cincinnati, which should create 25 full-time jobs and generate $1.4 million in annual payroll.

Breaking news: Teenagers are horny. Headline from The Cincinnati Enquirer: “Hundreds of Madeira High students involved in sexting?”

A Dayton donut shop is apparently one of the best in the nation, according to Saveur magazine.

Do video games cause violence? Apparently, the debate is a lot more complicated than most people think.

Mouse brain cells can live longer than the mice they came from.

A new Policy Matters Ohio report found local government funding has been reduced by $1.4 billion since Gov. John Kasich took office, leading to a nearly 50-percent reduction in state funding.

The report found local government funding dropped from nearly $3 billion in the 2010 and 2011 fiscal years — the years budgeted by former Gov. Ted Strickland — to about $2.2 billion in the 2012 and 2013 fiscal years — the first two years budgeted by Kasich. The governor’s most recent budget proposal would ensure the continuation of the downward slide, with local government funding dropping down to slightly more than $1.5 billion in the 2014 and 2015 fiscal years, according to the report.

Policy Matters concluded new revenue from the state’s casinos and an expanded sales tax would not be enough to outweigh cuts in the Local Government Fund, utility tax reimbursements, tangible personal property reimbursements and the termination of the estate tax. By itself, the estate tax, which was phased out at the beginning of 2013, would have provided $625.3 million to local governments in the 2014-2015 budget, but it was repealed in 2011 by the Republican-controlled Ohio legislature and Kasich.

The governor’s office has repeatedly argued that the cuts in Kasich’s first budget were necessary to help balance an $8 billion budget deficit, but the Policy Matters report says improving economic conditions have removed a need for further local government funding cuts: “To encourage growth we need good schools, reliable public safety and emergency services and strong communities. During hard times, state and local policy led to cuts. But further cuts in appropriations for local government are not helping communities. Curtailing local control of local revenues will complicate recovery – as the economy improves, it is time to restore the fiscal partnership between state and community.”

When presenting his 2013 budget proposal, City Manager Milton Dohoney Jr. said the state funding reductions cost Cincinnati $22.2 million in revenues for the year.

CityBeat previously covered Kasich’s 2014-2015 budget proposal and how it affects taxpayers, schools and Medicaid recipients (“Smoke and Mirrors,” issue of Feb. 20).