Mayor Wade Kapszukiewicz has spoken to literally hundreds of citizens groups over the last six months discussing what has taken place during his administration relative to our City. Wade explains that it took his administration the first two years of his four-year term to achieve recognized accomplishments like the regional water accord with neighboring cities, which built trust in the administration and resolved a problem which has been brewing for decades. As well, under his tenure, the City has taken a budget deficit of $3,000,000 in 2017, when he was sworn into office, to a surplus $17 million dollars last year. Further, past practices, to transfer funds earmarked for long-term projects or capital improvements to stanch the need for funds for short-term needs, which was allowed by a vote of the electorate in 2009 (during the last great depression), was not necessary in 2019. Further, there have been cost efficiencies recognized from merging City of Toledo 911 services with Lucas County, merging the City and County building inspection departments, as well as from other reductions in spending.
Update from 1982
But all of that relatively good news, Wade explains, cannot make up for the lack of revenue that is needed in order to undertake some of Toledo’s larger and more persistent issues. To do that, the Mayor is advocating a tax increase, albeit a slight one, however, an increase nonetheless. In 1982, the City of Toledo passed a three quarter percent income tax increase. That “temporary increase”, 38 years ago, which required voter approval every 3 or 4 years to continue, raised the rate on income earned in Toledo from 1.5% to 2.25%. Since then, (remember, that was Ronald Regan’s FIRST term) every three or four years, voters in Toledo have weighed in on maintaining that rate, and each time the voters have ratified the 1982 increase.
Issue 1, an investment in Toledo
The Mayor has now proposed Issue 1, an increase of the income tax rate to 2.75%, doing away with the three quarter percent tax that has been ratified since 1982. Instead, requesting a one and one-quarter percent tax increase (a net increase of 0.5%) that will run from July 1, 2020 through December 1, 2030, a 10-year time frame.
Major cities around the state of Ohio, defined as those with populations in excess of 150,000 residents, places you have heard of — Columbus, Cleveland, Cincinnati, Akron, Dayton, along with Toledo — all have increased income tax rates in recent years, EXCEPT, you guessed it, Toledo. The graphic demonstrates that the income tax that is generated, and more importantly, the tax per capita, is greater in every major city in Ohio, EXCEPT for Toledo. Further, and perhaps most telling, the total spending per capita in Toledo is less than any other major city in Ohio.
The intention behind Issue 1 is to raise money to be spent on the things that Toledo needs most.
Driving Toledoans crazy, the hole story
The repair and resurfacing of roads, a major concern for any citizen who drives or rides on our roadways, will benefit from Issue 1 revenue, allowing Toledo to repave 70 miles of roads per year for the next 10 years, where, as late as 2019, due to cost constraints, Toledo was able to repave less than 2 miles of roadway. Over 10 years, with the revenue from the 0.5% increase from Issue 1, that is over 700 miles of residential road repaving — virtually every road, street, cul-de-sac and lane in the City.
Repaving residential roads will enhance the drivability of our city and do away with the pothole dilemma, in a sizeable way. Last year, the Mayor, a numbers wonk, insisted on counting the number of potholes that were filled across the City. The count came in at 162,000 — perhaps good for tire replacement or wheel repair shops, but not for those of us that drive or ride on the roads. Obviously, by repairing and/or repaving, and not simply resurfacing the roads, the number of potholes, and the concomitant tire issues of the citizenry, will drop dramatically.
To Protect and To Serve, a police force
The police force has suffered personnel cuts over the last 20 years. In 1995 there were 700 officers on the force. Through retirement and attrition, coupled with the inability to hire new officers due to insufficient funds for payroll increases, Toledo Police Department personnel now numbers about 525 officers. The 0.5% new tax increase from Issue 1 will allow Toledo to hire 100 new officers, increasing police classes, year after year, by 40 officers per year over the next 10 years. And, lest citizens think that Toledo could simply “tighten the belt” to save money elsewhere to pay for needed increased numbers of police officers, it should be noted, that Toledo Police and Fire employee payroll rates per officer are less than any other major Ohio city (that’s right, the 3 C’s, Akron and Dayton) but ALSO less per firefighter or police officer than what is paid for comparable workers in neighboring suburbs including Sylvania, Perrysburg and Oregon. To increase the number of police officers, which results in less response time for emergencies, more presence in neighborhoods and which has been proven as an effective deterrent to crime, it is not a matter of simply cutting expenses, but rather raising revenue in order to meet the increased operating cost for the entire City of Toledo.
Park it, buddy
City parks, a measure of the quality of life in every regional and national publication which measures these things, will also be enhanced with capital improvement dollars. Right now there are 45 basketball courts across the city in City parks, and 25 of them are unplayable due to disrepair. While we have 59 tennis courts in City parks, only 30 of them are playable. Of the 75 ball diamonds that are located in the City, 45 of them are unplayable. The influx of monies that will result with the passage of Issue 1 will allow us to invest in ourselves and invest in Toledo infrastructure, to make this the place that we want to live. Beyond repair and usability, youth programs, for soccer and basketball and baseball, will be implemented, keeping our kids off the streets and active and engaged.
The promise of (and for) 4 year olds
The launch of Universal Pre-K, that is, pre-kindergarten education for all four year olds in the City of Toledo, will become a reality in the City. Currently, the ZIP code that a young child is raised in is an overriding determining factor in the success of that child once he/she reaches school age and, then, throughout his/her lifetime. Universal Pre-K, study after study has shown, will level the playing field, allowing each child in Toledo to attend and attain readiness to succeed in elementary school and beyond. It is noteworthy that Toledo is the only major city in Ohio, with a population greater than 150,000 residents (Again, including Columbus, Cleveland, Cincinnati, Akron and Dayton) that DOES NOT provide pre kindergarten instruction for every four year old child. Toledo children are the least prepared for school, according to State testing, with an astounding figure of 81% of kindergarteners ON DAY ONE not meeting the state readiness assessment.
Drawing a crowd, getting involved
An increase in taxes collected, and the enhanced investment in Toledo’s infrastructure and Toledo’s citizens (especially the youngest among us) will likely also bring an increase in investment from the private sector. One only needs to look at the example of the Marina District, a cooperative effort with the Metroparks and private investors, as well as the City, to see how cooperative efforts can work. Also, Promenade Park, where ProMedica and the City have partnered to enhance the riverfront, is a visible example of what is possible, and likely.
Toledo needs to pass Issue 1 to move forward. It is time that we invest in ourselves and increase the income tax, by 0.5%, that has been languishing since 1982. This will give Toledo the opportunity, over a 10-year period, a full decade, to demonstrate what can be done. Toledo is a wonderful place to live and work, and the passage of Issue 1 will make it even more so.
See here a copy of the ballot language which guarantees that the monies raised with the passage of Issue 1 will be used for the purposes that they are designated. There will be no transfer of monies for general fund purposes from capital improvement purposes, as voters allowed with a 2009 vote. This language and the intention of Issue 1 is transparent and the clear language of the law will provide the ability for both citizens and government to monitor how the City of Toledo is spending/ investing this enhanced revenue.
Language that will appear in the ballot:
Shall the ordinance (Ordinance No. xxx-19) repealing the City’s temporary three-quarters percent (3/4%) municipal income tax levy effective July 1, 2020 and enacting a one and one-quarter percent (1¼%) levy on income for the period commencing on July 1, 2020 and ending December 31, 2030, and allocating forty percent (40%) of the proceeds of that levy for the purposes of improving city roads, residential streets, sidewalks and meeting other public infrastructure and municipal capital needs, and prohibiting any transfer of such proceeds for General Fund purposes, and allocating sixty percent (60%) of the levy proceeds for General Fund purposes of providing police and fire protection, parks and recreation services and other general municipal operations, and to support pre-kindergarten education for residents of the City, which levy shall continue to be in addition to the City’s one percent and one-half percent levies on income that are in effect for a continuing period of time, be passed?
Further, please take a few minutes to view the video clip of the Mayor, Wade, explaining this himself. The video does a good job of succinctly explaining the needs and the reasoning behind Issue 1. The 2020 State of the City address can be found at https://www.youtube.com/watch?v=8K-cb_TiMMM.
Finally, please vote on March 17th. A participatory democracy is essential to make sure that all perspectives are represented and that all voices are heard. Toledo is doing well, however, we can do better. With your help, that is a certain reality.
