Cuyahoga Falls Budget Staying Afloat Despite Battered Economy
In 2013, Cuyahoga Falls officials predict the city will absorb state budget cuts and a downturn in the economy with the help of a projected $32 million general fund budget.
On Dec. 27 Cuyahoga Falls City Council approved the projected 2013 budget, which totaled $176 million with $32 million going into the general fund.
Given the two-sided economic challenge the city is facing, the high general fund balance will be of critical importance.
Cuyahoga Falls Finance Director Joe Brodzinski told the Falls News Press it's the first time in at least 20 years the city has simultaneously dealt with state budget cuts and a downturn in the economy.
Specifically, his projections indicate the city will lose $2.1 million in 2013 due to cuts to the commercial activity tax, estate tax and local government funds; it will receive $633,000 less in property taxes in 2013 versus 2010; and will collect $150,000 in interest on investments in 2013 compared with the $2.5 million in interest the city received in 2001.
To stay afloat, city officials have eliminated personnel, cut some workers' hours and combined positions to save over $7 million.
Mayor Don Robart told the Falls News Press the cuts to deficit-spending, known as austerity, have been implemented over the last eight years, and allowed the city to end each of the last three years (2010-12) with record-high general fund cash balances.
The remainder of the 2012 general fund, for instance, will cover a projected $1.9 million shortfall in the 2013 budget; and Brodzinski predicts the general fund cash balance will total $5.53 million at the end of 2013.
With that kind of carryover, the city has been able to maintain its services and avert serious economic problems.
According to the Cuyahoga Falls Finance Committee, which is comprised of three city council members -- chairwoman Diana Colavecchio, Don Walters and Jeff Iula -- the feeling is city and elected officials have worked well together to weather the storm.
Each council member told Patch via email the 2013 budget approval process went "smoothly," and said there has been no talk of layoffs or levy proposals to battle present economic conditions.
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o
12:59 pm on Sunday, January 6, 2013
They could save millions if they stopped the Portage Crossing project. I am sure we could live without a Menards and Chipotle if it saves us taxpayers from more waste of our money.
Earl Elevant
1:09 pm on Sunday, January 6, 2013
No way. Their arrogant pride won't allow them to admit failure.
Ever hear about the Natatorium's Center for Functional Fitness in where the old courthouse is? Neither has anyone else. But it's still there.
Jean Mathews
8:33 pm on Sunday, January 6, 2013
It is just so sad how much money has been wasted on projects such as Portage Crossing. It is going to fail anyway. How can you build an upscale shopping complex on a street where most of the neighboring buildings are in dire need of repair and many apartments are section 8? If they are attempting to attract shoppers away from 1st and Main in the beautiful city of Hudson, they are sorely mistaken.
robert falls
4:35 pm on Monday, January 7, 2013
Mayor's son works for the Portage Crossing developer. Why does no one see that as a conflict of interest?
wmfr
2:06 pm on Tuesday, January 8, 2013
Robert Falls, how can you prove this? Can Patch look into this and advise if this is true?
wmfr
2:20 pm on Tuesday, January 8, 2013
If it's true that Robart's son actually works for Stark Enterprises, I'd like to know when his employement began and I think it warrants questioning.