Toledo Finance, Debt, and Budget Oversight Committee Meeting - October 28, 2026

The Finance, Debt, and Budget Oversight Committee convened on October 28, 2026, chaired by Councilman Saran too, with members Driscoll, Gaddis, Hobbs, Jones, and Martinez present, along with President Williams. The agenda featured a collection update from the Department of Public Utilities, the September 2026 financial report, a critical 2027 budget development update presenting two scenarios dependent on the passage of Issue 16, public testimony, and the City Auditor's report on the Flock camera system audit.

Department of Public Utilities Collection Update

• Director Patika Pope Bannister reported on debt relief, Promise Pay, and installment programs. Installment plan collections generated over $8 million in September.
• Total active delinquent balances stand at approximately $38 million, down from a starting point of $61 million.
• The department recorded 114 disconnections and 65 reconnections in September. A total of 6,958 customers were enrolled in programs through September.
• Director Bannister highlighted that the "Fresh Start" program is working well for active residential customers and that over $5 million in future installment payments are scheduled.

September 2026 Finance Report & ARPA Update

• Director Melanie Campbell presented the September revenue and expenditure reports.
• Income Tax (Commissioner Zavisha): Withholding collections for September were down $2.3 million (14.1%), partly attributed to a timing issue with payroll Fridays and softness in the auto industry. Business income tax is down $7.7 million (31.2%) year-to-date. Individual income tax saw its third consecutive negative month, down $217,798 (2.2%) for the year. Overall, year-to-date income tax collections are down $7.8 million (4.7%). The current year-end projection is $231.8 million.
• General Fund: Revenue is at 64.3% of the budget estimate (75% of the year completed). Property taxes are at 101%. Total general fund expenditures are at 75.6% of the budget.
• ARPA: 97.3% of funds have been expended. RIP Medical Debt has purchased a debt portfolio, expected to abolish $26 million in medical debt for approximately 6,400 Toledo residents.
• Commissioner Morey: Reported recovering over $2 million in taxes, penalties, and interest. Wage theft investigations have recovered nearly $40,000 for 39 workers. A second court filing was made for unpaid wages.

2027 Budget Development Update

• Deputy Mayor Arnold and Director Campbell presented two working budget scenarios depending on the passage of Issue 16. Both scenarios require significant cost reductions, including a 5% reduction in contractual services, leadership consolidations ($1M in savings), and holding vacancies.
• Scenario 1 (Issue 16 Passes): Assumes $20-25 million in additional income tax revenue. Funds include new police (40) and firefighter (40) classes, a 10-officer expansion of the gang task force, a residential speed enforcement program, $1.5 million for demolitions, three full-time blight crews, open swimming pools, youth programming, and violence intervention. The CIP transfer would be reduced by $4 million.
• Scenario 2 (Issue 16 Fails): Projects no new tax revenue. Would eliminate youth programming, close all swimming pools, reduce blight crews from three to one, end the nuisance mowing program, eliminate curbside recycling ($1.5M savings), and end violence intervention efforts (except two grant-funded positions). The plan contemplates approximately 73 layoffs, with roughly half from police and fire. Fund balance projections show a drop to $21.8 million (end of 2027), under $6 million (end of 2028), and a projected deficit of $3.5 million (end of 2029).
• Councilman Driscoll questioned the administration's commitment to $10 million in structural expenditure reductions independent of Issue 16, given a previous council resolution. The administration clarified they view the resolution as primarily applying if Issue 16 fails.
• President Williams noted that savings from ongoing health insurance negotiations could potentially reduce the number of layoffs.

Public Comments & Testimony

• Richard Arnold: Criticized the cancellation of public safety committee meetings and lack of notice. He requested a formal confirmation on whether the fire department has sufficient funds to cover the $91,661 cut to dive and hazmat team physicals. The question was taken by referral.
• Joe Sarah (President, Local 2, Toledo Firefighters): Stated the union's full support for Issue 16. He described a staffing crisis, noting that one ambulance and an engine were out of service with no backup. He stated that a preliminary GIS study indicates the city needs additional fire stations. He emphasized that response times are critical ("time is tissue") and argued that there is no "fat to trim" from the fire department.

City Auditor's Report

• City Auditor John Ravalski updated the committee on the Flock automated license plate reader system audit. Fieldwork is underway. The Toledo Police Department requested a compliance review of criminal justice data rules. The tentative early November completion deadline will be missed.
• Councilman Martinez requested a detailed outline of the audit's scope, which the Auditor took by referral.

Key Outcomes

• The DPU collection update and September Finance Report were received and placed on file.
• The 2027 Budget Development update was reviewed as a working draft; no formal decisions were adopted.
• Questions regarding the dive/hazmat physical budget cut and the Flock audit scope were formally referred to administration and the auditor, respectively.
• The next committee meeting date was deferred to avoid a conflict with Thanksgiving.
• The meeting was adjourned.