City Finances

[Ed FitzGerald]

I was just interviewed by WTAM about our Finance Committee meeting last night, so I thought I would share some of what we've been discussing in recent weeks.

First, the good news. I had set an intial goal to reach a one million dollar surplus in our general fund by 2011. Most municipal finance experts suggest keeping around a 5% reserve, which for us would be equivalent to about $1.75 million, and ours had fallen to a thirty year low of $339,000 in 2007. It's important to keep a reserve for emergency expenditures, and because it can affect the city's bond rating. By continuing to economize and reduce costs, we were on track to reach a $1 million surplus by year's end. But our tax amnesty program was wildly successful, and will push our year end surplus to $1.5 million, the highest since 2003. Our tax department deserves alot of credit for managing that program successfully.

So our fiscal problems are solved, right? Wrong. The state's budget woes are having a ripple effect down to the local level. For instance, the state is estimating a 17% decrease in the local government fund, which is comprised of our share of state sales tax and state income tax revenues. So when the state gets less, we do too. That will hit us by more than $600,00 next year. Add to that declining revenues because of the 6% decline in property tax revenues (another million dollar hit to the city), and other miscellaneous negative factors, and we are looking at either spending down our surplus or finding another $2 million in reductions.

It's frustrating, because with all of the cost-reductions we've made in the last 2 years, we would be looking at one of the largest surpluses in the city's history- if the economy wasn't so lousy. But those are the cards we've been dealt.

We have several options. We can try to wring more efficiencies out of the system. We've been reviewing all of our expenditures, and looking for positions which can be eliminated by attrition. But that won't get us all of the way there.

We can hope to save money through union negotiations, because our contracts expire at the end of the year. We have recently begun the re-negotiation process with some of the unions, and are trying to expedite them.

We can spend down some of our surplus, but we have to be careful because we know that we are facing certain guaranteed costs in the next couple years. For instance, a large part of our fire and police departments are due to retire by the end of 2011, which in the short run will cost us more than $600,000.

We could try to raise income taxes in 2010, but neither I nor City Council is in favor of this approach due to the slumping economy and other factors.

City Council is approaching this issue prudently and responsibly. Together, we're setting a goal of maintaining a structurally balanced budget even in these very difficult times. I would encourage anyone interested to attend City Council's finance committee meetings, or one of our Listening to Lakewood meetings. FYI, the next one is Tuesday, October 27th, 7:00 p.m., at the L Room at Lakewood High School.

None of our options are easy, but I think Lakewood is making the right choices. I hope you find this general update useful.

[Bill Call]

It's frustrating, because with all of the cost-reductions we've made in the last 2 years, we would be looking at one of the largest surpluses in the city's history- if the economy wasn't so lousy. But those are the cards we've been dealt..

The decisions made by you and the members of City Council are examples of reasoned and responsible government. You all deserve more good press than you are going to get.

Just as a side bet I'll wager that if instead of taking action ya'll had sat wringing your hands with worried and confused looks on your faces repeating the mantra "regional problems require regional solutions" the news media would be singing hosannaheysannosannasonnahey.

[Shelley Hurd]

I was just interviewed by WTAM about our Finance Committee meeting last night, so I thought I would share some of what we've been discussing in recent weeks.

First, the good news. I had set an intial goal to reach a one million dollar surplus in our general fund by 2011. Most municipal finance experts suggest keeping around a 5% reserve, which for us would be equivalent to about $1.75 million, and ours had fallen to a thirty year low of $339,000 in 2007. It's important to keep a reserve for emergency expenditures, and because it can affect the city's bond rating. By continuing to economize and reduce costs, we were on track to reach a $1 million surplus by year's end. But our tax amnesty program was wildly successful, and will push our year end surplus to $1.5 million, the highest since 2003. Our tax department deserves alot of credit for managing that program successfully.

So our fiscal problems are solved, right? Wrong. The state's budget woes are having a ripple effect down to the local level. For instance, the state is estimating a 17% decrease in the local government fund, which is comprised of our share of state sales tax and state income tax revenues. So when the state gets less, we do too. That will hit us by more than $600,00 next year. Add to that declining revenues because of the 6% decline in property tax revenues (another million dollar hit to the city), and other miscellaneous negative factors, and we are looking at either spending down our surplus or finding another $2 million in reductions.

It's frustrating, because with all of the cost-reductions we've made in the last 2 years, we would be looking at one of the largest surpluses in the city's history- if the economy wasn't so lousy. But those are the cards we've been dealt.

We have several options. We can try to wring more efficiencies out of the system. We've been reviewing all of our expenditures, and looking for positions which can be eliminated by attrition. But that won't get us all of the way there.

We can hope to save money through union negotiations, because our contracts expire at the end of the year. We have recently begun the re-negotiation process with some of the unions, and are trying to expedite them.

We can spend down some of our surplus, but we have to be careful because we know that we are facing certain guaranteed costs in the next couple years. For instance, a large part of our fire and police departments are due to retire by the end of 2011, which in the short run will cost us more than $600,000.

We could try to raise income taxes in 2010, but neither I nor City Council is in favor of this approach due to the slumping economy and other factors.

City Council is approaching this issue prudently and responsibly. Together, we're setting a goal of maintaining a structurally balanced budget even in these very difficult times. I would encourage anyone interested to attend City Council's finance committee meetings, or one of our Listening to Lakewood meetings. FYI, the next one is Tuesday, October 27th, 7:00 p.m., at the L Room at Lakewood High School.

None of our options are easy, but I think Lakewood is making the right choices. I hope you find this general update useful.

This year will you be making really cost saving cuts?

This was for a simple drug over dose
3 Police cars
1 Engine truck
1 Police supervisor- suv
1 Ambulance

How much does this practice cost the city?

[Shelley Hurd]

Just so there is NO confusion.. the photo in my previous post was taken this summer 2009.

I was informed by the neighbor of the people who called for the ambulance that the incident was an O.D.

[Stan Austin]

Shelley---- I don't think that those who dispatch emergency responders should have to micro manage the degree of response when uncertainty prevails.
Better to make sure everybody is all right first, then pull back the safety forces for other duties.
Stan

[dl meckes]

The Fire department uses one of the big trucks as a kind of mobile toolkit. That truck goes out whenever somebody is locked out of their house. So there's one to gain entry to the living space. If it was an OD you'd want the ambulance.

Probably need a cop or two to ensure that traffic can be controlled and you might want another cop or two to see if the place where the person is being removed from is a crime scene.

As Stan mentioned, once everyone has had a chance to assess the situation, people are reassigned pretty quickly.

That's not as over-the-top as you might think.

[Danielle Masters]

I agree Stan, better safe than sorry. I know that when I have seen incidents with several different vehicles showing up they quickly leave once it is realized that they are not needed.

Also as the police cars are already in service I don't see how it would save us money for them to not respond. Same with the fire trucks, they have to make regular rounds anyhow.

[Shelley Hurd]

Shelley---- I don't think that those who dispatch emergency responders should have to micro manage the degree of response when uncertainty prevails.
Better to make sure everybody is all right first, then pull back the safety forces for other duties.
Stan

Stan,

This winter for a woman who was found unresponsive at the bottom of her back porch steps (3 steps). Her son told me she later passed away.

2 Police cars
1 Engine truck
1 Ambulance

The police and fire departments are not to blame. The policy is faulty and the cost to this city is enormous. Do we really need this kind of response to calls for an ambulance?

[Shelley Hurd]

I agree Stan, better safe than sorry. I know that when I have seen incidents with several different vehicles showing up they quickly leave once it is realized that they are not needed.

Also as the police cars are already in service I don't see how it would save us money for them to not respond. Same with the fire trucks, they have to make regular rounds anyhow.

Unless I am mistaken, this level of response inflates call numbers. An issue brought up I belive by the Autitor of State during the audit last year. If I recall right.

[Shelley Hurd]

The Fire department uses one of the big trucks as a kind of mobile toolkit. That truck goes out whenever somebody is locked out of their house. So there's one to gain entry to the living space. If it was an OD you'd want the ambulance.

Probably need a cop or two to ensure that traffic can be controlled and you might want another cop or two to see if the place where the person is being removed from is a crime scene.

As Stan mentioned, once everyone has had a chance to assess the situation, people are reassigned pretty quickly.

That's not as over-the-top as you might think.

The economics behind this is the issue. What is the cost for using an engine truck as a "toolkit"?

How long could any other city finance this kind of response? Everytime those trucks move...it costs this city money. Maybe Lakewood should see how other cities respond to calls for ambulances and see if they could find some cost saving ideas. I am sure Cleveland does not respond to ambulance calls in this manner. They would be bankrupt if they tried.

Also, if this response to calls for an ambulance is justifiable and necessary, just how many trucks, ambulances and police would then be deemed "enough" for a MAJOR emergency?

[Danielle Masters]

I don't think we should look to Cleveland for response ideas. We certainly don't want our residents to die waiting for someone to respond.

But I do think your question has merit. Perhaps there is a better way. What DL said though makes sense. And once again the trucks need to go out anyhow, they can't sit idle in the garages all day, it's not good for them.

[Jim DeVito]

Shelley, Your axe to grind is amusing but not much else. That is why I have not commented on any of your posts. (I think) At this point though you are getting a bit ridiculous. I hope they send whoever they can get if I ever fall off the stairs.

[Shelley Hurd]

Shelley, Your axe to grind is amusing but not much else. That is why I have not commented on any of your posts. (I think) At this point though you are getting a bit ridiculous. I hope they send whoever they can get if I ever fall off the stairs.

..."robust competition in the broadband marketplace ensures that service providers will act in consumers’ best interests." - COMMENTS OF TIME WARNER CABLE INC.

"Act in the consumers best intrest" doesnt apply to the City of Lakewood huh? Maybe you should find another quote. One you can belive in.


I have no "axe to grind" other then refusing to sit quietly and watch this city be used as a play thing by a man with a personal mission.

Attacking me for refusing to be blind to what waste is not only allowed by Mayor Ed Fitzgerald, but amplified by his continued bloating of departments that are already over staffed, over compensated and quite frankly seem to need to "find" things to do is not only unreasonable but harmful to this city. Trying to silence those who are brave enough to speak up and speak out will do nothing to end the "crisis" which faces this city.

Residents are asked to foot the bill, do with less and in some cases, to do with out to finace this outrageous absurd waste of Lakewoods precious little resourses.

Are our Fire and Police Departments really that much more incapable of doing their jobs as the FIre and Police in other cities? Do they really need 2, 3, 4, 5, 6, ... other people to hold their hand when they perform their duties?


You and Mayor Ed Fitzgerald obviously think so. Personally I think these men are professionals, are competent and do not require a crowd of their peers to watch over them in the performance of their duties.

[Esther Hazlett]

This year will you be making really cost saving cuts?

This was for a simple drug over dose
3 Police cars
1 Engine truck
1 Police supervisor- suv
1 Ambulance

How much does this practice cost the city?

How nice of you to classify a drug overdose as "simple".

Shelley, go away.

[Shelley Hurd]

This year will you be making really cost saving cuts?

This was for a simple drug over dose
3 Police cars
1 Engine truck
1 Police supervisor- suv
1 Ambulance

How much does this practice cost the city?

How nice of you to classify a drug overdose as "simple".

Shelley, go away.

Mrs. Hazlett,

The point was not that a drug over dose is irrelevant. But a drug over dose should not require the same response as say a car accident, a gun shot wound, a fire,...

The point was and is, when residents call for an ambulance, they expect an ambulance. Not a COSTLY spectical of Lakewood safty forces to show up at their door.