TIFFIN, OH (WTOL) - The mayor of the city of Tiffin said he has submitted the tightest city budget since the recession, and it could be a sign of more trouble to come.
Last week, Tiffin Mayor Aaron Montz submitted the proposed 2018 General fund budget to city council.
In the budget, it lists nearly $12.5 million in expenditures, with only a projected $11.6 million in tax revenues. That left more than an $800,000 deficit.
Mayor Montz said the city can bridge the gap with a carryover from the 2017 budget of $1.9 million, but it isn't a permanent fix, as the carryover is down nearly a full million dollars from 2016.
Mayor Montz cites the states new policy of allowing businesses to carryover losses up to five years. This means that instead of paying taxes, some companies can actually ask for a tax refund if they continually have losses in their books.
"And it's very frustrating for us that the state of Ohio is coming in and telling us how we can collect taxes from our locals, that decision should be left up to the government," said Mayor Montz.
This is why Tiffin has joined 137 other Ohio communities in suing the State over these new tax policies.
Until the issue is resolved, the mayor has told his administrators to trim or find new ways to make up the difference.
"All departments, number one, have been challenged and tasked with cutting any kind of excess fat that they believe that they can cut. I've challenged all of my department heads to run the tightest ship possible. And something else that we've challenged them with is figuring out ways to increase or create new revenue streams," said Montz
The city of Tiffin wants to get the 2018 budget approved by early December. That way they maximize the amount of time they have to plan for the 2019 budget.