D. Michael Collins - Mike's Positions on Selected Issues


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Mike's Positions on Selected Issues

Mike's Positions on Mayor Bell's Proposed City Budget Ordinances (added March 28, 2010)

I must begin by stating I am not sure that the Mayor's assumptions are correct. I believe we will hit $142.5 million for 2010 in the income tax collections. One must remember we hit $141 million last year and Jeep and Powertrain were down a significant part of the year. With great news coming from both plants I believe we will experience a year of slow but steady growth. In terms of the collection of delinquencies, I think $3.3 million is very conservative and collecting $5.75 million will be more likely.

In terms of Mayor Bell's revenue enhancements following are my evaluations:

Income Tax Credit Elimination - In my opinion this is not in the best interests for Toledo in the long run. This may secure tax monies to fill the immediate needs of our deficit, but it will also be the impetus to reducing our municipal population. It will have a negative multiplier effect on home values and small businesses, none of which will serve our city well in the long term. I predict this will fail on Tuesday, as it should.

We also have to consider the impact of the TPS ballot issue to create a 0.75% additional income tax. Should that pass the impact it will have on Toledo will in my opinion be totally toxic. The effect it will have on the constituents working in Oregon for example will be 4.5% Toledo income tax and 0.75% TPS income tax, totaling 5.25% in local income tax. This clearly will bring the Toledo residential properties to a devastating reduction in value and have long term dire economic consequences. This would affect all Toledo residents who are employed outside of Toledo and employed in a jurisdiction where they must pay an income tax.

Entertainment - Event Tax - I cannot support this as presented by Mayor Bell. I believe this will result in a legal battle with the County, one that I think we can win, but what in the end will we have gained in terms of collaboration and trust. I would also add we have some organizations in the Arts for which this may be the kiss of death. The impact of this tax on a family could be burdensome to the point of a diminished quality of life. I am sure you can see the politics going on: Speedway and Raceway Park are to be excluded as they are in District 6, but the downtown Entertainment District is fair game. Then all 501 (c) 3 organizations are off the board and thus what is left? All in all with politics being what it is, perhaps we should fold our tents and walk away from this proposal.

Refuse Fee - I do believe our Cart Reimbursement proposal is the fairest proposal. The Mayor's $15.00 fee for every household exceeds the costs of collection and is a step toward the Akron enterprise program. In addition, it will reverse the recycling effort. I am not in favor of the enterprise fund concept, as this places Toledo in a position that would eliminate any ability in the future to sub-contract with the private sector to take over the service or preferably have managed competition. I believe managed competition is the best answer for the City and it keeps both sides in balance.

Early Retirement Incentive Program - The OPERS program has this available and it has been used across the State. It has been found to be a fair and equitable to reduce human capital costs. Toledo has 109 employees who are eligible to retire and two more that are within one year of retirement. If there is 50% participation in this plan, there will be a financial benefit in 2010. The significant gains are in the succeeding years, 2011 and 2012. I have fought for the past two years to explore this and I believe if implemented it will be a value added to our costs of operation.

I believe that after we get passed this hurdle of setting a balanced budget, Mayor Bell and our City Council must come together and look to long term goals and outcomes. I do not believe our future rests with Penn National, and I predict this will be our next area of challenge. In December of 2009 we embraced legislation that may not have been lawful; we failed to have all of the pertinent information before us when we took our legislative action. I am sure we will be addressing this in the near future. I will be doing my due diligence and I strongly believe we can strike a deal which is fair to Toledo as well as Penn National.

Tax Credits (added March 1, 2010)
I am strongly opposed to elimination of the tax credit and will vote against it. I believe that the unintended consequences of elimination of the credit would place the City of Toledo in a weaker financial position in the future. Toledo residents working in other cities would likely consider moving. Toledoans working outside the City of Toledo would have the heaviest tax burden in Ohio. Further eliminating the credit would have a multiplier effect in that businesses in Toledo would be hurt. People who move from the City would support the businesses near their new residences.

Position Statement on Pension Pick Ups for City Employees (added February 28, 2010)
I believe the taxpayers can no longer tolerate their income tax dollars to be used to pay the employees' pension contribution. The city employees need to be responsible for their portion of their retirement obligation.

Following is an explanation for how the 100% Pension Pick Ups got started in the first place:

In the mid 1990's, AFSME Local #7 and the City of Toledo reached a tentative agreement that was aborted at the 11^th hour by then Mayor Finkbeiner. Under Ohio collective bargaining law, AFSME Local #7 and the City then went to Fact Finding. The arbitrator instituted the Pension Pick Up as binding, after which Toledo City Council adopted the provision. This set the stage for the other collective bargaining units to adopt a "me too" provision; thus, today we have 100% of the employee pension obligation picked up by the employer, the City of Toledo.

This issue is the proper subject of collective bargaining under Ohio law. If the employees refuse to address this issue, the consequences will be dire. Not only will their status with their current collective bargaining agreements be compromised, but long term consequences will result; that is, Toledo will never find the ability to reinvent itself in the foreseeable future.