On a snowy Tuesday, Febraruar 26, in spite of the local Obama-Clinton debate, many Lakewood residents packed a room at Harrison Jr. High to listen to "Making 'Cents' of Lakewood's Finances",a presentation sponsored by Lakewood Alive. In the presentation, numerous speakers talked about the economy in northern Ohio. The two initial speakers described the economic situation in Cuyahoga County, but it was the discussion of Lakewood's financial situation that motivated the residents to leave their warm living rooms and TVs.

Jennifer Pae, the Financial Director of the city of Lakewood, led the evening by explaining charts containing the hard financial numbers. (The “meat” of her presentation is available at http://www.lakewoodalive.com/pdf/Lakewood-City-LakewoodAlive.pdf) She reported that income tax collections have been flat, not decreasing. But Property Taxes, about 12 percent of which feed pension, wastewater, and the general funds; have decreased. In the meantime, expenses, especially health care for about 500 city employees, have ballooned. The problem, realized in November, is that expenses would exceed revenues by about 3 million dollars, and there is no general fund cushion left to pay the overrun.

Michael Summers followed Jennifer. Summers has a long history of establishing planning agendas for the city. A few years ago he headed the Grow Lakewood group to help define the city’s long-term goals. In November, 2007, he was a member of a quickly convened task force to access the city's financial picture and suggest where immediate cuts to the 2008 budget could be made. Mike, who is now the Ward 3 councilman, presented the summary of this task force. The group produced two levels of cutbacks – a minimal one, and a more aggressive one, if needed. The magnitude of the 2008 budget shortfall will require the broader cutbacks.

Mayor Ed FitzGerald then took the stage. FitzGerald started by discussing how the executive branch really controls the budget agenda. The Council has input, but it is the mayor who has to execute the tough personnel decisions that will have the greatest effect. Just like an old roof that is worn but not yet leaking, the previous regime managed to keep the budget on the plus side. Preventative maintenance is nice, but most things don’t get fixed until they break. Now that the budget is in the red, the tough measures have to be taken.

Immediately following the begining of his term, FitzGerald has taken steps to reduce expenses. He employed the services of the State Auditor, who did find that the new administration's budget accessment was accurate. The State Auditor will also continue to suggest best practices for the various departments of Lakewood city government. FitzGerald has frozen all raises and is negotiating with all of the city’s unions and departments. He wants to explore regional consortiums for health insurance that may generate cost savings, in the long term. FitzGerald did not provide details concerning cutbacks, which are contingent on negotiations and as the budget process unfolds. He believes that the last administration could have done more in the way of reformation before asking the voters for more. His administration will not ask voters to scarifice more in the way of taxes until they have proven that city hall has also made significant sacrifices.

Finally, FitzGerald talked about ways to improve the city apart from slicing budgets and personnel. He thinks that information technology can provide additional efficiencies in the public sector. He still aims to assemble a pool of funds to purchase foreclosed properties. Mentioning items related to his background in law enforcement, FitzGerald stressed his goal to add policemen, either full or part-time. He noted that our existing jail facilities are often inadequate, and that holding criminals in other locations has become a signigicant expense. His administration is exploring the possibility of constructing a new jail, that could potentially generate revenues from other suburbs!

Ed FitzGerald pledged to lead Lakewood though these difficult economic times and promises to do it with candor. In close, he asked for our help and patience for this arduous task.