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Ways to cut back on spending

Toledo still faces $12M operating deficit

Updated: Thursday, 25 Jun 2009, 11:06 PM EDT
Published : Thursday, 25 Jun 2009, 11:06 PM EDT

DOWNTOWN TOLEDO - With the city now facing a $12 million deficit, members of city council are still trying to find ways to cut back on spending.

Council members say a lot of residents are still without work and that's what's putting a drain on tax receipts, but they're hopeful things will turn around.

During the month of May tax receipts were down about 12 percent and that's about $1.5 million less compared to May 2008.

Council says there are still areas where the city could cut back on spending. On area could be supply costs. Although it won't help this year, some members believe going automated in trash pickup will also save the city $3-6 million in future years.

"We have no choice but to automate," said Councilman George Sarantou. "If we continue on with the current system of garbage collection three people working on a truck versus one person, the expenses will go in five years to $16-17 million."

Along with tax talk, council members heard from Dr. David Black and Dr. Oleg Smirnov, two University of Toledo economic professors, who projected the income, the same number the police union has disputed.

Dr. Black and Dr. Smirnov filed a defamation lawsuit May 26 against the Toledo fire and police unions.

The professor's projection is still $145 million in income tax revenue, but Councilman Sarantou is confident the city will get a grant from the Obama administration for more police officers, possibly in August.

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