Toledo Finance Committee Meeting: DPU Collections, Tax Revenue, ARPA Update – June 24, 2026
Toledo City Council Finance Committee Meeting – June 24, 2026
This meeting of the Toledo City Council Finance Committee covered updates from the Department of Public Utilities (DPU) on water bill collections and disconnections, a review of monthly financial reports from the Finance Department, and a discussion of the city's remaining ARPA funds. Public comment addressed sewer billing fairness, public banking, and scam alerts. No formal votes were taken, but several action items were identified.
Public Comments & Testimony
- Glenn Ryan (3072 Carsagen Avenue, Toledo) advocated for a public banking option to fund infrastructure projects (sewer, landfill, microgrid) and help offset rising utility rates. He urged council to re-examine public banking as a solution.
- Richard Arnold warned of increased scam activity during water disconnection periods. He requested the city collaborate with the Better Business Bureau, Area Office on Aging, and other agencies to educate vulnerable residents about scams that impersonate DPU and demand immediate payment.
Discussion Items
Department of Public Utilities (DPU) – Water Bill Collections and Disconnections
- Chief of DPU reported on June 1–15 collections: 340 enrollments in installment/payment plans (Promise Pay), 12 accounts paid in full ($232,000 recovered), and 17 disconnections (with 1 reconnection after a payment plan). May had no disconnections; the process began June 1.
- Outstanding balance as of May 26: $61.6 million owed, with $16 million collected, leaving ~$46 million. The chief noted the number fluctuates daily and proposed modifying future reports to show active delinquent balances since the moratorium ended.
- Council Vice Chair Driscoll asked for data on occupied vs. vacant properties among disconnected accounts. The chief agreed to include that breakdown.
- Councilman Hobbes requested an update on the Swain Field water bill (previously covered by ARPA). The chief said she would look into it.
Winter Sewer Averaging & Irrigation Meters
- Councilman Soranto read an email from resident Charles Horvath criticizing the elimination of winter sewer averaging, arguing that water used for irrigation does not enter the sewer system. Soranto stated he supports returning to winter averaging but lacks council votes.
- Director Bannister (DPU) reported that she and legal counsel are exploring a solution using separate meters for irrigation systems. She noted that a pool credit is already available. The approach would likely require property owners to install private meters.
- Council Vice Chair Driscoll questioned whether the city could finance meter installation via a tax assessment or loan, similar to how bad debt collection might provide a funding pool. Bannister said these options are under review, including impact on rate models and outstanding debt.
- Councilman Soranto mentioned that he and Councilman Melvin have discussed financing options with DPU leadership.
Finance Department Reports
- Income Tax Update (Commissioner John Zavisha) :
- May withholding up 8% ($1.1M) year-over-year; year-to-date withholding up 1% ($623K).
- Business net profits down $3.9M in May due to one company not making a 2026 estimate payment. Year-to-date down $3.5M.
- Individual net profits nearly flat. Refunds issued so far $1M (higher than last year at $600K).
- IRS collections flat; down $170K year-to-date. The city expects annual IRS data later this year.
- Wage and Hour Enforcement (Commissioner Dan Morey) :
- New wage enforcement coordinator April Weber joined April 28. Three open wage theft investigations (two against same employer). Recovery of owed taxes has exceeded $1.3M since program inception, averaging over $12K per week.
- Community outreach planned with Toledo Jobs with Justice and the Department of Neighborhoods to educate vulnerable workers.
- General Fund Revenues (May) :
- Collections at 41.7% of budget; 33% of total estimate received. Property taxes on track. Casino revenue received. Investment earnings stronger in second half. A one-time PFAS settlement boosted other revenue.
- Expenditures at 42.2% of budget; labor costs $1.4M over budget due to early-year stipends (expected to decrease). Police overtime up $130K; fire overtime up $700K+ (partly due to the West End tragedy). Medical costs down slightly.
- CIP & ARPA Update (Finance Director Campbell) :
- CIP: $185M in open projects including road and bridge improvements.
- ARPA: 94% expended ($11M remaining). Two projects finalized (affordable housing, culture/arts/tourism). The remaining funds must be spent by December 31, 2026. Director Campbell agreed to have department heads present spending plans at the July meeting.
- Council Vice Chair Driscoll emphasized the need for concise updates on ARPA spending plans, not program accolades.
- Councilman Soranto raised a question about updating Section 108 loan payments (e.g., Delta Hotel). Director Campbell confirmed the Delta is current.
Public Banking and First Energy Rate Increase
- During public comment, Glenn Ryan urged a public banking option. Councilman Soranto stated he and Councilman Melvin are working on a resolution to oppose First Energy's latest rate increase request, similar to past resolutions that reduced the increase.
Key Outcomes
- DPU will revise the monthly report to include active delinquent balances, disconnection data, and occupancy status of disconnected properties.
- The Finance Department will coordinate a July meeting presentation where department heads outline final ARPA spending plans to ensure full expenditure by year-end.
- City will add scam warnings to water bills and coordinate with external agencies to alert vulnerable residents about disconnection-related scams.
- Councilman Soranto and Councilman Melvin will prepare a resolution opposing the First Energy rate increase.
- No formal votes were taken during the meeting.
Meeting Transcript
Is your mic on? Oh, okay. Oh, sorry about that. That's okay. Could you just repeat that? I am happy to repeat that. I'm sorry about that. Um, do you want me to go over the whole thing or just the June information? June information. Sorry about that. I'm not sure what happened. So for June, looking at June 1st through June 15th, knowing that our disconnection process started on um June 1st, we have already seen a huge increase in installment and payment plans for our uh residential customers specifically. So in June, um we have already had 340 enrollments. We have had 12 accounts that were delinquent were paid in full, uh, bringing in a total of 232,000 dollars. If we keep this trend through the end of the month, this will be the highest collection month that we have had with Promise Pay. So obviously we're paying very close attention to that, um, knowing that our approach to disconnection was to help our customers be successful in paying our water bills. This the data that we're receiving this far, um, June 1st through June 15th is sh is showing that. So I just wanted to highlight that, um, knowing that the May numbers that you have in front of you, but but as you can tell, you know, in May, we had 436 customers already in June or um account set up already in June were at 352. So, were there any turnoffs? There were. Um not in May, no. We did not start disconnections until June. Um, currently we have done 17 disconnections. Um, of those, we have had um one that has reconnected due to signing up for a payment plan and being put in put on a payment plan. Okay. But in June, we won't uh, we will show all of that on the yeah, in in July for the June report will um what we could add to this, what we were thinking about for June is maybe modifying this report a little bit to sort of sort of give a capture of those delinquencies since the moratorium. And then show you the outstanding balance, then we would show essentially our active delinquent balance. We thought that might be helpful, and then what's what's collected, knowing that those disconnections started in June. Okay, all right. Council uh council vice chair, Driscoll. Thank you, Mr. Chairs. How many how many accounts do we interface with that were given a disconnect notice? I'm just not sure if we're all the way through that 102 number. So I could get that to you by the rolling. Right. We were doing a little bit of a slow roll. If you recall, um, our approach and how we were starting was with the 102 residential customers that actually had their water disconnected before the moratorium went in place and and hadn't had any active payments or made an attempt to pay their their water, their past due water bill. So we started with those accounts, they received the notices. Some some paid, some went into payment plans, which is wonderful. We never had to, you know, give that disconnection notice. Um, unfortunately, some did not, and we have had to disconnect the water. Of those that were disconnected, we have had one customer reconnected because they they've paid. Do all of these accounts though represent somebody who's still until the disconnect was still util was still using water? Yes, because when the moratorium was in place until January, well, yeah, until January 1st. These aren't like vacant, but that's my question. These aren't like vacant houses that have gone together. We are tracking that. We are tracking and we could show that in the July report or June, we could show which which are um which appear to be occupied or not. Okay.
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