Toledo plans to dip into savings in 2020

TOLEDO, Ohio (WTVG) - With better job numbers and increasing income taxes, the city of Toledo still plans to dip into its savings for the year 2020. On Tuesday, the city went into depth on its numbers and where your tax dollars will be spent.

What's tough about the number is that things like income tax collections are up, there's more money to work with. The issue is that expenses are increasing and still aren't getting the city ahead of the curve.

If you ask Toledoans about their biggest city-wide concern, road conditions usually come to the top. In the recently unveiled 2020 budget, there are only $4 million budgeted for residential road repairs.

"No, that's the reality of our budget," said Katy Crosby, Mayor Wade Kapszukiewicz’s Chief of Staff.

As council members digested the budget Tuesday morning, they heard the whole scope of the budget from technology systems that needed massive overhaul failing, to those roads.

Toledo has lots of needs and not enough money to cover it all. In 2019 the city had to go into its savings, for about $11 million to cover its costs.

"So when the income tax went up it alleviated the situation a little bit but we still had a deficit,” said city finance director Thomas Skrobola.

"Even though income taxes are going up, we are still not collecting enough revenue to cover basic services,” said Crosby.

That move meant the city did not transfer money from its capital budget to fund its general operations like police and fire.

In 2020, the city is asking council to split the difference by taking some money from savings and some from the capital budget for general operations.

What’s looming next is the city’s request to increase the income tax to pay for things like universal pre-k, roads and police.

"That's why we believe we really need this income tax increase because now we will have this additional money that we can leverage," said Crosby.