13abc.com: Breaking News, Weather and SportsIncreasing tax revenue creates funding demands

Toledo should learn by the end of the month if it collected as much income tax as projected in 2011.   The outlook is good but that doesn't mean the city has money to spend.

The City may beat it's tax projections for last year, and the Bell Administration estimates tax collections will be higher in 2012.  But the city may want to watch how it spends. 

On the Rise

Toledo's tax collections are on the rise...

In 2007, the City collected more than $169 million in income tax.  That tumbled to $141 million two years later.  In 2012, Toledo projects revenue to rebound to $154 million dollars.

But while that's good news, Toledo has some holes to fill.

Toledo City Councilman, D. Michael Collins (I) says, "We're still going to have to have a very disciplined approach to our municipal finance."

Councilman Collins says the first priority must be putting money back into the Capital Improvement account to fix roads.  The city took nearly $11-million from CIP just to balance the budget, this year, and has for several years.

The City also needs to put more money into it's rainy day fund.

Union Contracts Due

But union contracts with fire and police contracts are coming up and Toledo says it needs concessions to save money.

Both union reps have been telling 13 A-B-C they see higher tax receipt estimates for this year and insist their members deserve raises.

Toledo Police Patrolman's Association president, Dan Wagner has told 13 ABC, "I think we're going to be able to prove that the city's in a better financial situation then they are letting the citizens of Toledo believe they are."

The Firefighter's Local 92 leadership agrees with the police union, telling 13 ABC reporter Bill Hormann, recently, "Quite frankly, we don't believe the city's numbers, right now."

Next week, police go to fact finding to fight for a raise, but Toledo is already committed to police...

Thirty-nine new recruits hit the streets, in May.   Another 40-member class begins in September.  But more recruits are needed and any additional revenues may have to go to that. The fire department also needs a new class.

City's Dilemma

So Toledo faces a dilemma: Tax revenues are up, and projected to go higher, but that means there are demands the city has to meet.  Demands from unions, from city departments and from various city budgets.  Councilman Collins says, "Prudent, responsible fiscal handling of priorities is no long an option, it's an absolute."

Expect tax collections for 2011  to about 4-million dollars above projections.  A good trend the city hopes continues but that could mean competing interests fighting for more money.