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Akron budget amendment paused after staff outlines higher-than-expected COLA costs and plan to draw $8 million in ARPA interest
Summary
Committee took time on an amendment to the 2025 appropriation after staff said cost-of-living increases and wage pressures require adjustments; staff proposed drawing about $8 million in ARPA interest to supplant general fund balance and noted Project Acorn and reimbursable grant activity.
The Budget & Finance Committee took time on an ordinance to amend the city’s 2025 annual appropriation after staff outlined several drivers of the request, including higher-than-expected cost-of-living increases and wage pressures across departments.
Mister Wheeler asked Teresa Klein, the city’s audit and budget manager, to distribute memos explaining the requested amendments. Wheeler told the committee the largest single driver is higher-than-anticipated cost-of-living adjustments for divisions across the city. He also said the income tax capital improvement fund needs additional funds to cover public works equipment and that the community environment fund requires budget additions for newly awarded grants.
Wheeler said Section 16 of the proposed amendment would "allow us to draw down the interest from the ARPA fund and supplant our general fund balance" and estimated "about $8,000,000 that we're gonna be drawing" to help cover police and fire salaries and other needs. Staff characterized Project Acorn as a reimbursable grant and said the city must spend funds before it can be reimbursed.
Councilman Fusco asked about a $125,000 line for the municipal court clerk, and staff said it is to finish the implementation of the Tyler Odyssey project. Staff indicated the Tyler system is up and running and appears to be functioning well.
After questions, councilmembers moved and seconded a motion to take time on the appropriation amendment so staff can provide fuller detail; the motion passed by voice vote. No final vote on the ordinance was taken at the committee meeting.
What happens next: Staff will provide additional detail on the proposed amendments and return the ordinance for further committee consideration before any final council action.
