Cincinnati City Council on Friday approved a budget that relies on parking privatization as a means to plug a $34 million budget deficit while also raising property taxes in 2014.
Mayor Mark Mallory opened up the council meeting with a moment of silent prayer for the 27 students and adults killed at an elementary school in Connecticut.
“I want us all to take a moment and put into perspective what we’re doing today,” he said.
Council voted to increase the property tax by about 24 percent, from 4.6 mills (a mill is equal to one-tenth of a cent) to 5.71 mills. That means Cincinnatians would pay an additional $34 for every $100,000 of their home’s value.
The vote reverses a move made last year by conservatives on council, who reduced property taxes.
Council also passed a budget that relies on $21 million from a proposed lease of the city’s parking facilities — a deal that is expected to be voted on in March. Of the proposals submitted to the city so far, Cincinnati stands to gain $100 million to $150 million in an upfront payment and a share of the profits over the 30-year lease.
“My concern about balancing this budget with a onetime revenue source by selling our parking system seems to be ill advised,” said Independent Councilman Chris Smitherman. “We don’t know how council will vote in March … but we have tied not only the budget to this one time revenue source, but we have also tied reciprocity.”
Council nixed a plan to eliminate tax reciprocity for people who lived in Cincinnati but worked elsewhere and paid income tax in both cities.
Though the budget doesn’t mention parking privatization, council hasn’t mentioned other options to close the budget deficit.
If opponents of parking privatization want to keep facilities under city control, they would have to come up with $21 million in revenue elsewhere or make $21 million in cuts.
Councilman P.G. Sittenfeld suggested using casino revenue, cutting travel expenses, downsizing the ratio of managers to workers, sharing services with nearby jurisdictions and downsizing the city’s fleet as ways to cut down the budget.
Councilwoman Laure Quinlivan, long an advocate of downsizing the police and fire departments, voted against the property tax increase in protest of what she said was bloated spending on departments that were outpacing population growth.
The budget also requires Cincinnati to accept police and fire recruit classes in 2014, regardless of whether the city gets a federal grant to fund the classes.
The budget also restores the Cincinnati Police Department’s mounted patrol, which patrols downtown on horseback. The city will use $105,000 from off-duty detail fees from businesses that hire off-duty officers. Council also voted to start charging those businesses an extra $1.64 on top of the off-duty pay.
Council also voted to shift $50,000 for repairs and upgrades to the Contemporary Arts Center to pay for maintenance and beautification at Washington Park, which is operated by 3CDC.
There’s a catch — municipal employees only get the raises and job security if the city’s parking meters, garages and surface lots are leased to a private company for 30 years.
City Manager Milton Dohoney wants to lease the facilities for at least $40 million upfront and a share of parking profits for the next 30 years. He’d use $21 million of the upfront payment to patch a $34 million deficit in the city’s budget.
During recent budget hearings before City Council, Dohoney said extra revenue was needed to avoid the layoff of 344 city employees.
In a memo to the mayor and city council members, Dohoney outlined the agreement between the city and the American Federation of State, County and Municipal Employees (AFSCME).
Any municipal employees who will lose their jobs because of the deal would be placed in other city jobs with no loss of wages. No city employees covered by the union would be laid off between 2013 and 2016. City employees will receive a 1.5 percent cost of living raise for the 2013-2014 contract year and another 1 percent raise for the next contract year. AFSCME members will continue city vehicle maintenance work from 2013-2016.
However, if City Council doesn’t approve of the plan to privatize parking, city employees get nothing.
Public employees in Cincinnati have not been given raises in almost four years. Meanwhile, council voted last month to give Dohoney a 10 percent raise and a $35,000 bonus. Dohoney had not received a merit raise since 2007, but had collected cost of living adjustments and bonuses over the years.
One of Cincinnati’s largest neighborhoods and business districts is adamantly against a proposed plan to lease the city’s parking systems.
A Dec. 7 letter to the mayor from Clifton Town Meeting President Peter Schneider calls the plan “baffling,” “short sighted” and “counter-intuitive.”
The city administration wants to lease all Cincinnati parking meters, garages and surface lots for 30 years in exchange for an upfront payment of at least $40 million and a share of the profits.
The city wants to use $21 million of the upfront payment to help close a $34 million hole in the upcoming budget.
Schneider writes that the proposal is bad for business, making it harder for customers to find cheap or free parking near retail areas like Clifton’s Ludlow Avenue corridor.
He also worried that a private operator would ratchet up the price for parking, making the facilities “unidirectional ATM’s (sic) benefiting a third party that provides minimal or no value to the citizens.”
Schneider also complains that Cincinnatians have not been given details of the deal or the opportunity to weigh in on it.
“It is unconscionable that the City administration would allow a similar plan (to the citizen-defeated red-light cameras) affecting parking meters and services be railroaded through City Hall without the appropriate sunshine and input of the populace,” he wrote.
He also compares the proposal to Hamilton County’s mishandling of the stadium deals, claiming that a similar long-term lease is unwise.
Schneider ends the letter by admitting that there are some aspects of outsourcing that could be beneficial, such as private management of surface lots or garages or maintenance, but the idea of privatizing everything goes too far.
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.
Happy new year! Yes, planet Earth made it through another year. Welcome to an “extra saucy” Morning News and Stuff.
U.S. Congress managed to narrowly avert the “fiscal cliff,” a series of tax hikes and spending cuts set to kick in at the beginning of 2013. If the fiscal cliff had not been prevented, economists and the Congressional Budget Office warned the United States would have plunged back into recession. The final deal keeps tax hikes for those making more than $450,000 a year, and most Americans will see their taxes increase as the payroll tax break passed with President Barack Obama’s stimulus package expires. It’s important to remember that the passing of a deal is not some show of bipartisan heroism; instead, it’s Congress barely preventing an entirely self-inflicted problem.But the deal did not come smoothly. Not only did Congress wait until the very last moment, but U.S. Speaker John Boehner used a naughty word. At a White House meeting, the Ohio politician shot at unfavorable comments from Democratic U.S. Sen. Harry Reid’s by telling Reid, “Go f— yourself.” In fact, Boehner actually used the naughty word twice! Reid replied, “What are you talking about?” Boehner once again said, “Go f— yourself.” Who knew U.S. Congress would turn out to be so much like high school?
When Corrections Corporation of America’s (CCA) Lake Erie prison received an unfavorable audit, the Ohio Department of Rehabilitation and Correction reacted by cutting payments to CCA by $573,000. CityBeat covered the audit and its troubling findings here. CityBeat also covered private prisons in-depth here.
On the bright side, Ohio’s minimum wage went up, like it’s required to do so every year. Policy Matters Ohio says the increase will bring in $340 per year for 215,000 low-wage workers around the state.
Cincinnati-based Kroger is looking mighty tempting this year. Stock-wise, anyway. I don’t think many people like grocery shopping.
A court ruled Ohio overcharged 270,000 businesses for workers’ compensation premiums and must repay them. The ruling could cost the state millions of dollars.
In case anyone was worried, the national standards Ohio adopted for schools do not ban The Catcher in the Rye. Book cliff averted.
Allstate is hiring in Ohio. I’m not sure why this is news, but it’s on multiple newspapers today, so there it is.
Intel could be looking to revolutionize the cable industry by allowing people to subscribe to individual TV channels.
That’s not a medieval weapon; it’s a space rover! The new rovers planned by top universities and NASA could visit Mars’ moon Phobos or an asteroid. It’s, like, whatever.
Council Member Chris Seelbach says he’s getting impatient with streetcar delays. During a series of complaints aired on Twitter, Seelbach wrote the deadline for streetcar operation should be the Major League Baseball All-Star Game in 2015. This week’s CityBeat cover story explains some of the delays and how the streetcar relates to the 2013 mayor’s race.
The Pentagon is planning to lift the ban on women in combat situations. U.S. Defense Secretary Leon Panetta said the decision came after a recommendation from his Joint Chiefs of Staff. Between the end of “Don’t Ask, Don’t Tell” and this decision, President Barack Obama’s administration has been one of the most inclusive when it comes to the military.
The Ohio Supreme Court has agreed to hear a case questioning the constitutionality of JobsOhio. Policy group ProgressOhio says it might be illegal to use state liquor profits to fund JobsOhio, a private nonprofit organization Gov. John Kasich set up to drive economic growth in the state.
The Major League Baseball All-Star Game could bring $60-$80 million to Cincinnati, according to Julie Heath, director of the University of Cincinnati’s Economics Center. It was recently announced Cincinnati will host the game in 2015.
Gov. Kasich said he won’t oust State Board of Education President Debe Terhar after she made a Facebook post comparing Obama to Adolf Hitler. Kasich is happy she admitted it was a mistake, and he said he will leave it at that. Democrats called for her ousting Tuesday.
American Military Partner Association, a national organization that supports LGBT veterans, endorsed FreedomOhio’s same-sex marriage amendment. If voters approve the amendment this November, gay marriage will be legalized in Ohio. CityBeat wrote more about FreedomOhio’s ballot initiative here.
Cincinnati Public Schools is piloting an after-school program focusing on the arts. The high-energy sessions are apparently proving to be a hit among students so far.
U.S. Speaker John Boehner, a Republican from West Chester, says President Barack Obama is out to annihilate the Republican Party. I’m not seeing the problem here.
Moody’s doesn’t have confidence in U.S. nonprofit hospitals.
New science makes it possible to detect brain damage in football players that previously couldn’t be seen until a victim was dead. CityBeat covered how head trauma relates to former Bengals players' workers' comp claims here.
Popular Science explains how to make the perfect snowball.
Republican Ohio Treasurer Josh Mandel is hiring political workers and friends at his job again. His latest hires are Joe Aquilino, former campaign political director to Mandel’s U.S. Senate campaign, and Jared Borg, former campaign political coordinator. During the 2010 campaign for the state treasurer’s office, Mandel said, “Unlike the current officeholder, I will ensure that my staff is comprised of qualified financial professionals — rather than political cronies and friends — and that investment decisions are based on what is best for Ohioans.” Mandel’s spokesperson defended the hires by touting the treasurer’s accomplishments in office.
With a vote set for tomorrow, it’s still unsure how the Hamilton County Board of Commissioners will solve the stadium fund deficit, but it seems like both options require tax increases. Commissioner Todd Portune, the lone Democrat on the board, proposed increasing the sales tax by 0.25 percent. Board President Greg Hartmann, a Republican, presented an alternative plan that reduces the property tax rollback by 50 percent for two years, but he also said he’s not sure how he’ll vote. Commissioner Chris Monzel, a Republican, says he wants to find a plan that doesn’t raise taxes.
Either parking services are privatized or 344 city employees are laid off. That’s how City Manager Milton Dohoney Jr. framed budget talks to City Council yesterday. The city has already made drastic cuts since 2000, laying off 802 employees. Dohoney also pushed for repealing the property tax rollback promised as part of the stadium deal in 1996, but City Council does not want to raise taxes in the middle of a slow economy. The fact is any form of austerity will be painful, so City Council should be as cautious of spending cuts as tax hikes. A public hearing on the budget will be held Thursday at 6 p.m.
The city of Cincinnati’s plan to buy Tower Place Mall and the adjacent Pogue’s Garage in downtown is moving forward. The city offered to buy the mall and garage for $8.5 million in order to spur economic development in the area. The parking garage and half-empty mall are currently in foreclosure.
Cincinnati State is looking to expand.
One year later, the Ohio Department of Natural Resources hasn’t followed up on a court order to compensate flooded landowners.
The State Controlling Board approved three programs that will provide transitional housing and other services to the homeless. As part of the initiative, Habitat for Humanity of Ohio will receive $200,000, the Homeless Crisis Response Program will receive $12,680,700 and the Supportive Housing Program will receive $9,807,600 from the Ohio Housing Trust Fund.
Great numbers from November from auto companies could mean more hires.
A dissolving nanofabric could soon replace condoms for protecting against pregnancy and HIV.
The city of Cincinnati and its largest city employees union have reached a deal regarding the privatization of the city’s parking assets. Under the deal’s terms, the city will give raises and not lay off anyone for three years, but only if the city’s parking assets are privatized. However, the head of a Clifton community group is still not happy with the privatization plan. He says the plan is bad for business because it limits the amount of affordable parking in the area. But would laying off 344 city employees be better for business?
The identity of the Miami University student who put up
the infamous “Top Ten Ways to Get Away with Rape” flier may soon be revealed. The Ohio Supreme Court
will decide by Dec. 14 whether the case should be unsealed and open to public view. Robert Lyons, the Butler County part-time judge who sealed the case, has faced scrutiny in the past few months for conflicts of interest regarding drinking-and-driving cases.
Revenue from casinos in Toledo and Cleveland is dropping. The numbers paint a bad picture for Cincinnati and Hamilton County officials expecting budget problems to be solved by casino revenue.
A proposal mandating drug testing for welfare recipients in Ohio resurfaced last week. Republican legislators claim the requirement will save the state money, but a similar proposal in Florida added to budget woes as the state was forced to pay for drug tests.
Ohio’s ultra-wealthy population is growing. About 1,330 Ohioans are worth $30 million or more, an increase of 2 percent since 2011, according to a report from Wealth-X. The news could shape Gov. John Kasich’s plan to cut the income tax using revenue from a higher oil-and-gas severance tax, perhaps encouraging state officials to make the cut more progressive.
Gov. Kasich is ending the practice of giving so many tax credits to keep businesses in Ohio. The move could potentially cost the state jobs as businesses move to other areas with bigger, better incentives, but state officials and the business community don’t seem too worried for now.
If the Ohio government agencies were forced to cut their budgets by 10 percent, the results would not be pretty. The Ohio Department of Rehabilitation and Correction would have to close prisons, and the Ohio Department of Natural Resources would have a tougher time enforcing new regulations on fracking.
Ohio’s exotic animal law is facing a challenge in federal court today. Exotic animal owners claim the law violates their First Amendment and property rights by forcing them to join private associations and give up their animals without compensation. They also do not like the provision that requires microchips be implanted into the animals. The Humane Society of the United States is defending the law, which was passed after a man released 56 exotic animals and killed himself in 2011.
An Ohio court said a business tax on fuel sales must be used on road projects.
Ohio gas prices are still dropping.
The cure for leukemia could be a modified version of the AIDS virus.
Two Ohio senators, including Senate Minority Leader Eric Kearney of Cincinnati, are pushing a bill that will require the state’s Bureau of Motor Vehicles to grant driver’s licenses to the children of illegal immigrants. The senators claim state BMV offices are inconsistently applying President Barack Obama’s Deferred Action for Childhood Arrivals program, which allows the children of illegal immigrants to remain in the country without fear of prosecution, but the Ohio Department of Public Safety says the issue is still under review. CityBeat originally broke the story after hearing of Ever Portillo’s experiences at a Columbus BMV office here, and a follow-up story covered the internal conflict at the BMV over the issue here.
Ohio officials have said the state has only put $1 million toward JobsOhio, but records recently acquired by The Columbus Dispatch show $5.3 million in funding has been directed to the program
so far, and the public investment could be as high as $9 million. State
officials said the funding is necessary because constitutional
challenges, which the Ohio Supreme Court recently agreed to take up,
have held up the program’s original source of funding — state liquor
profits. JobsOhio is a nonprofit company established with the support of
Gov. John Kasich that’s meant to attract investment and bring jobs to
the state. Kasich says he wants to replace the Ohio Department of Development with the nonprofit company in the future.
City Council’s Budget and Finance Committee approved a plan to lease Cincinnati’s parking assets to the Port of Greater Cincinnati Development Authority in a 4-3 vote yesterday, but the plan will require five votes to become law in a final City Council vote tomorrow. The plan, which CityBeat previously covered, 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. 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. Critics are worried the city will give up too much control of its parking assets as part of the deal, and concerns about the city’s long-term deficits remain. The alternatives — plans B, C and S — would fix structural deficit problems, while the budget only helps balance the deficit for the next two fiscal years.
The company that will operate Cincinnati’s parking meters if the parking deal is approved by City Council had problems in the past, according to a tip received by multiple news outlets from Tabitha Woodruff, an advocate at Ohio Public Interest Research Group. The issues surfaced years before Affiliated Computer Services (ACS) was bought by Xerox in 2010, and Xerox now denies any wrongdoing. One of the issues is a 2007 audit, which found ACS mismanaged parking meters in Washington, D.C. Kevin Lightfoot, a spokesperson at Xerox, says the audit was based on “faulty information,” and a lot of the problems found were because the auditor improperly read parking meter screen displays.
An approved commitment by the Hamilton County Transportation Improvement District (HCTID) may ensure a rail service is ready for Cincinnati in time for the 2015 Major League Baseball All-Star Game. Hamilton County Commissioner Todd Portune is pushing for local and state governments to break down any barriers for Oasis Rail Transit, which will carry passengers from Downtown to Milford.
The Ohio Board of Education will decide between two candidates for state superintendent next week: acting Superintendent of Public Instruction Michael Sawyers or Dick Ross, Gov. John Kasich’s top education adviser.
After years of development and anticipation, Cincinnati’s Horseshoe Casino opened yesterday. The casino comes with the promise of jobs and economic development, but it also poses the risk of crime, bankruptcy and even suicide. State and local legislators are also looking forward to extra government revenue from the casino, even though casino revenue around the state has fallen short of projections. For Over-the-Rhine residents, the grand opening, which culminated in a fireworks display, was sort of like being in the middle of a thunderstorm.
Livability.com named Cincinnati the No. 10 spring break destination because of the Cincinnati Zoo, Botanical Garden, IKEA, Cincinnati Art Museum, the 21c Museum Hotel, Newport Aquarium and the Clifton Cultural Arts Center, among other places and family-friendly activities.
Science doesn’t want pregnant women to be capable of anything.
Here are two pictures of Venus from Saturn’s view.