Bowling Green is on track for budget estimates for income tax, but officials are wary of inflation’s impact.
Before Monday’s council meeting, the finance committee received the first quarterly update of 2022 on the city’s finances.
“Today is tax day, so next quarter will be a better indicator,” said Finance Director Dana Pinkert. “From the way it looks now, we are on track with our budget estimates for income tax.”
Through March the city has collected $5.5 million in income tax revenues this year, approximately $323,000 above estimates for the year.
They are currently estimating that the city will take in $22.4 million in income tax revenue this year.
Pinkert said that a major consideration in the second quarter of the year will be inflation, including prices of fuel and vehicles.
“You can’t get vehicles ordered, they’re taking a long time,” she said. “We have talked about it with the department heads to review their budgets. We know that we’ll have some increases and supplementals” before the end of the year.
“Overall, quarter-to-date, we’re within the constraint of our budget,” Pinkert said. “It’s not doom and gloom, but we do have to keep in mind this inflation stuff that’s moving through, and we’re always looking at the income tax.”
Council President Mark Hollenbaugh, who sits on the finance committee, asked Pinkert if she was optimistic whether the income tax revenues and the outlays for inflation would balance out.
“I’m optimistic on what we budgeted,” she said, “because I even know some of the fuel we budgeted for inflation. We just don’t know if we did a good enough job of that. … Overall, I think I’m optimistic that the city can handle it.
Councilman Greg Robinette, chair of the committee, said that one way to mitigate the effect of inflation is to increase the city’s tax base, and that they need to continue with what they’ve been doing and increase jobs in the city.
Also at the meeting, council:
• Heard from Community Development Administrator Martha Woelke and Housing Specialist Matt Snow, about an upcoming housing program utilizing American Rescue Plan Act funding. Woelke noted that the city had approved providing $100,000 for three years to bolster efforts at maintaining and improving housing in Bowling Green.
Woelke said that the largest share of Community Development Block Grants are for low and moderate income residents, senior citizens and residents of manufactured homes. She said that 54% of those on their wait list are looking for help with exterior projects, and 46% are seeking help with plumbing, heating ad electric work. She said that they feel in the first year they can take care of those on the waiting list, limited to homeowners only. They will then reevaluate and see if they want to also include projects for small landlords. For more information, call 419-354-6221 or email [email protected].
• Approved appropriations totaling $45,000 related to information technology matters. According to the legislative package document prepared for council, “these supplemental appropriations are requested to purchase needed licenses and IT solutions related to severs, upgrading aging equipment in need of replacement, and cybersecurity replacements – all of which were unforeseen when the 2022 budget was created last December.”
The document states that new IT manager Chris Loveless was tasked with identifying “any critical gaps in current IT related functions/equipment and within the city’s cybersecurity posture. Chris identifies three such gaps – Microsoft license compliance, the need to virutalize aging and failing equipment at the Police Division, and identifying an Endpoint Detection and Response solution which will make the city compliant with current cybersecurity insurance requirements.”
• Introduced, gave three readings to and passed unanimously an ordinance authorizing Utilities Director Brian O’Connell to purchase replacement pumps for the Autothermal Thermophilic Aerobic Digestion process at the Water Pollution Control facility. The total cost of the three pumps, including shipping, is estimated at $96,149.
“Having these pumps on hand will ensure that the plant can continue to process bio-solids to produce Class A, Exceptional Quality Sludge and that the facility remains in compliance with the National Pollutant Discharge Elimination System (NPDES) permit,” the legislative package document stated. Funds for the purchase of the pumps were included in the 2022 budget.
• Introduced two related ordinances – one authorizing O’Connell to advertise for bids and enter into contracts for engineering services for final clarifiers with the Water Pollution Control Facility, and a second authorizing him to execute a loan agreement with the Ohio EPA/Ohio Water Development Authority for a Water Pollution Control Loan Fund loan for design and engineering for the clarifiers. According to the legislative package document, the clarifiers “are used to settle solids by gravity and reduce total suspended solids … before filtration” and that process requires additional capacity.
“The filters eventually become overloaded,” the document states, “which can cause a high (total suspended solids) in the plant effluent. This can result in the plant being in non-compliance with the (National Pollutant Discharge Elimination System) permit.”
The city self-reported TSS limits violations to the Ohio EPA in 2017, 2019 and 2022, and “all were due to wet weather events and extended duration treatment above 20 MGD.” The document states that the clarifier improvement was planned for in the 5-year capital budget with $500,000 budgeted for engineering in 2023, and $4.5 million budgeted for construction in 2024, and “the city anticipated using an OEPA Water Pollution Control Loan Fund… loan to fund the project.”
• Introduced an ordinance authorizing O’Connell to advertise for qualifications and enter into a contract for engineering services for lighting improvements at Carter Park. According to the legislative package document, the improvements will center on upgrades to baseball field lighting; $600,000 was included in the 2022 budget for the project.
• Heard a portion of a proclamation from Mayor Mike Aspacher declaring April 29, 2022, as Arbor Day in the city of Bowling Green. He noted that the city has been recognized as a Tree City USA for 42 consecutive years.
“I think that it’s important for me to take a couple of minutes and highlight this proclamation and the city’s commitment to the tree infrastructure in the city. We stand out in the field in the state of Ohio, and we’re recognized for our efforts,” he said.
