Here are the notes from our mid-year budget review…
– In March, four members of council voted for a budget that included a $214K deficit and took $1.1M out of capital fund. The ratio of operating expenses to capital expenses should be 60-40, but it’s really 80-20. Janet D’Antonio called that “horrible” tonight, but she still voted for the budget in March.
– The Mayor said she doesn’t agree with service director Dano Koehler’s unflattering assessment of the road program, which consists of only $650K this year, and most of that is tied up in Kenneth/Samira. Another $200K is going to Maplewood Park. Quoth the mayor: “No matter how much money we put out there, there is always somebody who didn’t get his road done. It’s never enough.”
– Unemployment in Stow is at 9 percent, up from 8.5 percent last month. In 2007 and 2008, it was around 5 percent.
– The Finance Department suggests cutting non-core services and reducing employment. We won’t see many more voluntary departures in the next couple years, they say, because if employees planned to leave, they probably would have taken the cash payout in the voluntary separation plan last fall.
– Now to the important information… How does the revenue look so far?
Income taxes are below our projected budget, but not by much. We are short of that projection by about $14K — less than 1/4th of 1 percent. When compared to 2009 figures, here is how the four components of income tax are faring:
1) Employer withholding tax: up by $95K. This means employees in Stow made more money in the first half of 2010 than the first half of 2009.
2) Income taxes paid by individuals: down by $95K. This is money paid directly to the city by residents or sole proprietors. The figure is impacted by tax rates of other communities, which are sometimes raised to 2 percent. So when the rates were 1.5 percent, Stow would get the balance. But when the rates go up to 2 percent, there is no balance for Stow.
3) Taxes on net profits of businesses, down by $170K. That’s probably the purest sign of the recession.
4) Utility payments from the state, down by $39K.
– On expenditures, overtime is up. Expenses total will have increased by between 1 and 2 percent. In the past, those differences are made up for by taking money out of the capital fund. It looks like we’re heading that direction again. Even less money for roads.
– We have a committee-of-the-whole meeting at 6 p.m. tomorrow, followed by a council meeting at 7 p.m. The committee meeting is to discuss amendments to the charter amendment proposals from Charter Review. Based on conversations I have had, it should be very interesting. Below is the amendment I’m proposing:
Shall the proposed Enactment of Article XIX Section 19.03, entitled “Changes to Charter”, which Enactment reads as follows:
“SECTION 19.03 CHANGES TO CHARTER The Law Director may amend the Charter without ballot approval, for the purpose of striking provisions that are unconstitutional. The Law Director shall make such an amendment only upon: unanimous resolution of the City Council, written approval by the Mayor and written concurrence by at least one outside legal counsel.
be adopted?
– Also this … It’s too early to discuss the 2011 election cycle, but one candidate for mayor in Stow is already knocking on doors. Brian Burgess is going strong. Nice work. I can almost guarantee there will be a primary for mayor, and if Burgess keep this up for 16 months, I’ll wager that at least one council member loses his/her seat as a result.