Finance & Debt Oversight Committee - Regular Meeting

Twenty ninth. Twenty ninth.

Good afternoon. The Finance, Debt and Budget Oversight Committee will come to order and the clerk will call the roll.

Sorrento. Here. Driscoll? Here. Gaddis? Here. Hobbs? Jones? Here. Martinez? Four present.

Thank you, clerk. Good afternoon, everybody. We first on the agenda will be chief Robeson for an update on our DPU past due collection efforts. Good afternoon, chief.

Good afternoon. Good afternoon, members of council. Chair Sorantu, thank you for having me today. Director Bannister is currently on vacation, so I'll be presenting our monthly water bill collection update. Our team has created the attached report, which I hope you all have a copy of, that we anticipate to be providing you on a monthly basis.

The report provides monthly and year to date snapshots of our installment plans and current collection figures. Our goal was to provide counsel with something consistent and something that you can use as comparable information. If there is any additional information you would like included on this report, we're happy to do that and have it prepared for the next finance committee hearing. As you'll see from the report, currently we have a total of a little over 5,200 residential payment plan accounts. In the month of February, we did collect over $45,000 on those accounts, bringing the year to date collection total to a little over $93,000 Currently, we have a total of over $945,000 that has been collected on our commercial high strength industrial accounts.

Our team has been working on updating our process for nonpayment and water shutoffs. Because we have not shut off residential water in quite some time, we want to make sure we develop a process that is fully communicated to council and our residents. To take a responsible and phased approach, we will be providing a comprehensive customer assistance and financial support overview in addition to our plan. We hope to present this to council within the next month. Our goal is helping our customers to be successful at paying their bills.

I was communicating this with Chair Sorantu, I've had a conversation with committee chair Martinez about this as well. So we hope this to be a collaborative process. We'd like to bring this information to counsel so that we're all on the same page before we start implementing this plan. I'm happy to answer any questions that you may have regarding the information.

Okay, well thank you. So we started these collection efforts last year, what's your estimate in terms of how much money we've actually brought in?

Sure, I think we're probably at about, I'd say roughly $4,800,000 I know at the end of last year we had about 4.5 collected, I can get that exact number for you by way of referral. And so then if you add in the additional amount that we've collected, if you include commercial actually, we're probably over that $5,000,000 number, we're probably closer to 5,500,000.0.

Yeah, I do want to include commercial because we had some very large

accounts Yes, we did.

From businesses that are operating that had not paid us. Some of them were exceeding a $100,000.

We'll do that. I can get that by way of referral and what I'll do is for the next meeting, I'll actually just include on the bottom of this report a running total if that's helpful.

Okay. That that would be helpful. Sure. And as I've stated before, you know, Councilman Driscoll and I, our vice chair, we met with Don Zurniak and Don has been with the city a number of years, obviously. And he indicated to us that years ago when they would do shut offs, they had crews that went around and residential accounts to shut off and the minute they showed up, suddenly people were coming out of their homes with money to pay the water bills.

So I really think we've got to get serious about this, because 95% of the rate payers are paying on their water bills and we really need it's not fair to them. And I think it was well over like 65,000,066 million dollars that's been owed. I recognize for the most part, it's going to be hard to collect a significant amount of that. But nonetheless, we do have to make that effort and get serious and notices to people door hangers and that we've sent out many notices. We have a payment plan that I think is very equitable for folks.

We just need to get moving on that. So I appreciate the next month. Our next meeting will be April 29 at four if we can have an updated report on total amount of collections residential, commercial, industrial, obviously. And then we can move from there, but hopefully we'll have a plan laid out Absolutely. Prior to

Yes, that's our Okay.

With that, we'll go to Vice Chair Driscoll.

Thank you, Mr. Chair. Yes, so I think running total will be good. Think we're about a quarter of the way through this reflects two months, I suppose. So we're on pace for a little bit more collected this year if things hold.

So I

think a running total would be nice to know. But I also think as long as we're going to report to finance, and I know you report to Water Quality Committee as well, I think it'd be good to know the total outstanding amount of unattractive bills too, to see what kind of progress we're making. I'm curious though, do we do reporting to credit agencies for people's water bills if they don't pay them?

So currently I don't believe we are. It is something that we have discussed as a part of the process and collecting on some of that outstanding debt.

Okay. If we don't, then the only tool in our toolkit really is to do shutoffs. And I don't think we ever really want to get to that point, but we price in delinquency into our rate structure, which means everybody else, 95% of the people who do pay their water bill are paying a higher water rate to account for the people who don't. And there's a fundamental question of fairness, I think, there. But I'm I know we have I don't know what the disparities between commercial and residential, so I think it would be good to know the outstanding

Yeah,

For both of the outstanding debt on the list. Thanks very

much. You, Vice Chair. Councilperson Gavis.

Thank you. I had a question, it's around this but maybe a little bit off. The appropriation that's in front of us to pass for the customer assistant grant program. Do you know about how many people it will help that's already in the rears? Like, have we done any analysis on that?

I believe we have, and we can get you that information based on what we have outstanding, how many people could potentially qualify for that. That specific grant that we have is just one piece of the comprehensive customer assistance and financial support programs that we offer. For that one specifically, it hasn't been utilized as much because we haven't been shutting off water. What we want to do and what we hope to do when we're presenting our plan and our process when we are getting to the point to start shutting off water in hopes that we're supporting and helping our residents to pay their bills is that we're going to have a complete overview of all financial assistance programs that would be available and then we could give you a clear understanding of how many of our residents would qualify for each of those.

Okay. That would be nice if you could do the senior as well. Yes. Because as I am pushing this out into the community, I'm finding a lot of seniors that aren't utilizing it because they thought it was attached to finances and it's not. Our programs are different. So there's not people have misconceptions on some of our programming.

I I agree with you, and we wanna make sure that we have clear and concise messaging and that all of our council members are aware of that so that we can get that to our to our residents.

Okay. And I just wanna reiterate that I have the power of junction, the Broadway Corridor Coalition and One Voice. They are willing to help us through this. So I'd really like to partner with my community groups

to get Wonderful. The word Okay. Thank you.

Thank you. Thank you, chair.

Thank you, Councilperson. And again, I would reiterate, we really need to do everything we can like with the mailing of the bills, notices that there's a senior discount.

Yes.

And payment methods, if you're having problems, we just need to really continuously inform our citizens because again, I think, you know, we had a hearing here a few months ago, and we had people that did not know about the senior discount. Now there's limits on that. If you use quite a bit of water, you don't qualify for that. But for the most part, most seniors would. So any efforts that we can have with the mailers that we have, social media, media announcements, it would be very helpful, I think.

Anything Sounds

else? Does anyone else have questions on that? If not, Chief, thank you very

much

you. For being

Next on the agenda will be the Department of Finance report and Director Campbell, I'll wait for your team to join us.

You. Afternoon, Thank

you for the sunshine, by the way, today.

It was nice to see.

Proceed.

Thank you. Good afternoon Chairman Surroundu, Vice Chairman Driscoll, members of the committee. We're here today to present February Finance Committee reports. At the table with me, we have Tax Commissioner, John Zavisha, our Accounts Commissioner, Thomas Buckley and Wage and hour compliance commissioner, Dan Mori. He'll give an update at the end of our presentation. Also with us today in the audience is our purchasing commissioner, Natalie Bronagh. We will start with the finance committee report packet and dive into income tax collections and I will turn it over to Commissioner Zavisha.

Good afternoon, sir.

Good afternoon. I'll be covering pages two and three of the report and then the compliance unit attachment as well. Through the month of February, overall the city on a year to year basis were down 371,358 Now it should be taken consideration for taxation at this point. We have less than 8% of our collections for the year. So for example, in the withholding category, the first monthly payment was due February 15, the first quarterly payment will not be due to April 30.

So in the withholding category through the month of February, we're down $327,629 or about 1.7%. For the business and individual categories for net profits for a calendar year filer, obviously returns are due April 15, but also the first estimate payment is due as well. So at this point you're sort of getting fiscal payments on businesses, you are getting some early estimate payments, but not a lot of money coming in through this part of the year. For the business category for the year so far we're down $36,841 individual category we're down $6,888 but at this point no reason for concerns at this point where us being this early in the process. Going forward to Page three then, so we do have now so the $25 unaudited, so again that thirteenth period that we always talk about did end on February 28.

So there might be some still some minor auditing changes, but we're pretty much getting into what our true 2025 tax number was. Obviously, we have the projections out there then for the general fund for '26 and road improvement as well. Again, sort of showing there that we expect to get to about $272,000,000 overall. In addition to that, I'd also like to say the compliance unit attachment was there. So far this year we are up about $21,000 compared to last year. Again last year $6,200,000 was the second best collecting year in the twenty five years of the program. So it's nice to get off to a good start in those categories and I'm open for any questions.

Okay, great. Councilperson Gattis.

Thank you. Thank you for your report. As things are going and we're seeing more indicators of the recession slowly trickling in, and you said that right now you don't see any concerns. When what's the number that would start to concern you like what percentage down?

Usually once you pass about 1.5% you really want to start looking at it. At the same time I would make the argument that until April's numbers are officially done you wouldn't want to jump to any conclusions one way or the other. It's very easy this early in the year because there's so few numbers coming in that you can look good or bad in the beginning. So you would definitely want to get through the first quarter completely, have that first round of estimate payments, calendar tax years filed, a couple of months worth of withholding. Again, at this point in February, you get one month of monthly withholding, quarterly withholding.

We don't even like I said, it isn't due till April 30, so sometimes that's actually even into the May numbers. But I would say when you start to look at the numbers as in hey going very good or very poor, you would want to get to that point and then like I said, it's probably getting about 1.5%, 2% away from the budget that you would want to start really digging deeper to see what's going on because especially like last year we had it for the business net profit, It's very few companies control the majority of that number then for profits within the city and stuff like that. So, those are where you're looking at individual companies and less of the overall total than on that as opposed to withholding it. There's a top 75 companies that we're mainly looking at to look to see okay who's up, who's down and then what's the reason? Is it a one time payment that maybe happened in a prior year that doesn't happen this year or vice versa or truly hey this company is laying off employees and we're now starting to see what that is affecting us on a monthly basis.

Okay. Thank you. Thank you, Chair.

Thank you. So in terms of the top 75 that you just mentioned, do you are you seeing any trends that we should be concerned about?

Again, at this point, we've got one month and we can sort of compare it a little to last year. So we sort of look at it from two different angles. One is sort of almost doing like a February versus February look because in a case like that this year for instance we had one company where it would have been a one time payment that we got last year, didn't happen this year. So we're not as worried that that company on a monthly basis is going to be lower, but you're still starting to try to watch for that. We also had it that last year was a year where from withholding it was the second half of the calendar year where we were really strong.

If you would think back or look back on reports through April, May, June, we were still negative through that point to then have the strong second half where you start to hit some especially like construction and stuff like that much stronger in the second half of the year, the holiday season and stuff like that. But at this point too early for anything at this point, but that's what we're sort of looking for year to year basis and then does it is it a one time event or not.

Okay, thank you. Vice Chair Driscoll.

Thank you, Mr. Chair. So it's unaudited, but we won't be changing any I mean, because of an audit, we won't be receiving any more tax payments in the general fund for 2025, is that correct?

Correct. Yes, there might be some little small changes less than 100,000 probably would be I would think almost a major change at that point, but pretty well set on that number with the closing of the thirteenth period.

Do you know approximately what thirteenth period collections were in like 2023, 2022, because this seems to be the biggest driver of the difference between 2024 and 2025, almost an $11,000,000 difference between those two years and projecting an increase in general fund collections of $9,000,000 going into next year now that we're thinking about the upcoming budget. Just wonder why is there when we do sort of right size our projection a little bit, but do you understand my question?

Yeah. What ends up happening again, a lot of that 13 period number there are definitely again getting back to there's a couple of major employers in town where it's their net profit return that affect the numbers. We'll sometimes get some estimate payments in for those and sometimes we won't get those until they truly file their tax return, which usually is October or November. So usually even when that number comes in like a couple of years ago, we had a very strong number. We still verify with the company that everything is correct on that because on that one, you could very easily have something be one year be zero and a different year to be 10,000,000 or $12,000,000 So we like to sort of verify to go okay, what is your estimate payments, what is truly that net profit and what ends up happening is there's an opt in program that major employers end up using.

So, they're truly filing with the state and then the state reports it to us. So, once they report it to us then that's us looking into it to go okay, we just want to make sure we got the right number reported to us because in the end it's just hey company A $2,000,000 then looking into it to go request and we're able to then request copies of an eleven twenty or a ten sixty five or whatever and stuff and be able to look at it for ourselves because they've taken advantage of that program with the state. So on the surface they don't report to us. We just have to then get the information and then we check into it. And then that usually causes that 13 period number to fluctuate so much because it's such a major player.

So do we have any concern about our 2026 projected budget now that we basically know the amount of money we collected in 2025, do we have any concern?

Not necessarily at this point in time. We're definitely introducing a couple of new programs that we're looking at probably getting about $4,000,000 in collections and so we're getting those up and running and stuff. Again getting back to where those major net profit companies sort of ebb and flow a little bit. Last year was a poor year compared to the prior two or three years. So we are expecting a little bit of a bounce back on that.

We'll be able to tell that a little bit as they make estimate payments will help guide us on that one direction wise. But again, like I said, that's usually why we'll wait till first quarter completions to be able to really see, hey, we like this number, this one's concerning for us and whatever it happens to be at that point.

Okay, great. Thank you.

Thank you, Vice Chair. Couple of things I wanted to ask you about. We get daily reports at council on Engage Toledo, what questions are coming in and we're seeing usually tax questions are number one. How is that going? Because I know from previous reports, you're able to get back to our taxpayers pretty quickly when they have questions. Is that continuing? Yes,

actually we really loved how this program sets up. So you got to figure so a person will end up calling in to engage Toledo. What then happens is one of our supervisors will be able to look at that because in tax it can go in so many different directions. It could be a garnishment case, it could be a court case, it could be someone just wanting their estimate payments, help with filing a tax return, checking their payments on their account, can they get on a payment plan, all that stuff. So what ends up happening is those calls come in that same day then they'll get assigned to someone on our staff and we just sort of set it up where it's like these two people cover audit, this person will cover collections, this person covers compliance and then that's what we do.

We hold our staff to hey that call. Obviously, would really like it done in twenty four hours as we get closer to April 15, we sometimes push that forty eight but our goal is within forty eight hours to get all of those cleared out and the nice thing with it is because of in the CityWorks system you have to mark that it's done. It's an easy way for supervisors to be able to see, okay, here are the three calls that fell between the cracks or whatever and stuff like that and be able to get on whoever it was assigned to be able to get those completed or maybe that employee has been off sick or something then get someone else onto that call to take care of it. We've really loved the system and the setup.

That's good news because I mean, the taxpayers need answers especially with April 15 fast approaching. So we appreciate that. Also, the new program with the state attorney general's office. Tell us how that is going on.

Yes. So, so far on that one, we've signed the Ohio attorney general about $2,600,000 To date, they've collected for us $249,000 already. So, has actually been going really well with that. So, what ends up happening is a person still goes through our system, you get your foreign notices and each of those notices is noting that hey, if this doesn't get paid, could go to them. And then once they get it, sometimes it's the name on the letterhead, sometimes it's federal or state refunds and stuff, but they work and it's been very successful so far and we really like Okay.

And the stacks unit or IRS unit that's going

Yes, 880,000 already in this year for them and yes, it's really being able to use that IRS data. So again, you filed your federal taxes, certain employees in our office have access to that database, they're comparing that database to the city's database to see, hey, you're filing at the federal level, you're not filing at the local level and then it can be checked into to be like, does that employer have a Toledo account? So we can match it that way and then when that doesn't happen, we can start the letter system of saying, hey, you might have something here, we will need to talk to you about it and go forward with All

right. Anything else under taxation commissioner?

That covers it for today.

All right. Thank you very much. Councilman Hobbs has joined us also. Director Campbell, next.

Thank you. Next page four moves into the rest of the general fund revenues. You'll see overall here through February collections are at 8.6 of the budget. We were at about 10.6% of the budget last year at this point. The primary driver there for that variances in the property tax section you'll see a second kind of box on your report.

We've got some payments in on the property tax but the large settlement that we receive came early in March as opposed to in late February of last year. So we'll expect to see that then reported and be probably at about 50% of the budget when we report to you next month. Looking through the rest of the report, again, we're still early in the year, we have some quarterly payments that we have yet to receive in intergovernmental that impacts our JEDS revenue as well as our casino revenue and our charges for services area, cable franchise fees, our quarterly payments. We continue collections through EMS and BLS transport fees. That one's at 9.2%.

We do get one payment that comes in from the county. That one has yet to come in yet. That's why we're at 9.2% in that category. Court fees and fines on track with what we would expect running a little bit ahead of budget in the other revenue category. We have received some of our school resource officer payments already. And then as you look at other financing sources and uses, we do have the CIP transfer. We make that at the end of the year and then the transfer in other areas comes in from the TOLA as well as from ARPA funds. But again, overall here through February in line at this point overall with our revenue projections.

So the CIP transfer has occurred?

For 2025, yes. Okay.

All right. Thank you. Okay. Any questions? Okay. Next.

Our general fund expenditures are on the next two pages on page five by category and on page six by division. Overall, we're at 14.2% of the budget. We do have positive variances overall within our labor expenditures as you see base labor as well as pension and employment tax costs are running under budget at least through two months. The overtime category we do see a variance against the year to date budget in fire. They did have a fire class that graduated at the February.

With those officers now on the line that should help with recall overtime that's something we'll want to watch over these next couple of months and see if that number starts to stabilize a little more closely to budget. Service and supply costs are running under in both categories. On the service side we will record as we get that settlement from the county our health department costs we had those at this point last year but overall again on the general fund budget as you see on this page and on the next page, running under the budget on a year to date basis in several areas.

Okay, and then we just had a fire class graduation. So I assume that should have somewhat of an impact on fire over time.

Yes. Yes. That's something we'll want to watch over these next few months and see if that does start to come closer in line with budget.

Okay. Councilman Hobbs.

Thank you chair. Ms. Catamult, you have any idea what our retirement is going to look like this year for fire and police? Any idea for '26?

I don't know offhand. I think they're typically in the 20 to 30 range for each, but we could get some more specifics on their projections from with places

on fire. The budget and everything, you know, I just think it's important, but we're, you know, with the classes and all that. So I just wonder what we were looking like possibly, but it's okay. I I understand. It's hard to know, you know, what people are thinking about doing and not doing and someone could say and then just decide, hey, I'm out.

I get it. But I just didn't know if you already kinda had an idea what we were looking like. When I first came on council, we dealt with I think councilwoman Gaddis remembers. She was the only one that was here at that time, but we dealt with that spring and that whole summer. Several of our fire stations, they were closed throughout that. You know? We remember, we were constantly getting emails about stations being closed because they didn't have enough. So I'm just thinking ahead with vacations coming, with retirements, will we have the numbers we need for our stations to be active each day? That's all. So thank you.

I appreciate it. Thank you.

Thank you, councilman. Next.

The last two pages are the all funds revenue expenditure reports. I'd be happy to answer any questions that you might have before we move into CIP and ARPA, which were also attachments in your packet and be happy to answer any questions on those as well.

Okay. Seeing no questions, don't we move into that?

Okay. So the CIP report for February 2026 shows all the active projects in total,

a

that

the seeing

seeing in in

the surprises, anything unusual? No, no. Okay. And All right. And then you also have an ARPA.

We did submit the one page ARPA summary through February, which reflects again full obligation of all the projects and $12,600,000 approximately remaining to spend by the end of the performance period this year.

Vice Chair Driscoll.

Thank you, Mr. Chair. Appreciate last month when we got an update about this, but I think said it at the committee and then I think probably maybe halfway through the year we need to do that update again. But we also need to be very, very clear. I don't really care about the content of the program so much. It's all nice. I appreciate it. I care about whether or not we're going to spend the money that's on the page. I know they all believe they're going to spend the money. Of course they do. But we need to know I want I think we should communicate very clearly to them how are you going to spend the money in between now and the end of the year. And I think we can we have a few months to work that out. Appreciate it. And

again, I think all of us would appreciate if the finance department can reiterate that with the recipients that because what we don't want to have happen is December 10, we're suddenly informed we've got $3,000,000 left and we have to make a decision where it's going to go. We know the federal rules indicate that it has to go to a very similar program. If we have money for a facility that serves youth, then it has to be in that area, you can't deviate and send it to a fire station for improvements. Am I correct on that?

You're correct, Councilman Sorantu and our team has and continues to reiterate with all the departments the need to make sure that they have a plan in place and the dollars are spent by the end of the year. We work closely with law to make sure that contracts are awarded. Our purchasing team works to make sure things are moving quickly through the system. So we are all cognizant of the deadline at the end of the year and plan to spend every dollar.

Would appreciate monthly reminders to our department heads that are dealing with that. Councilwoman Jones, Doctor. Jones.

Thank you, Chair. For the ARPA projects, could you add the column of just the percentage that's been expended so far? I think that would help also with the discussion concerning projects that may have a certain percentage where they're not even going to hit it by the end of the year and that's so that can be a trigger for us to really start these conversations just to make sure that things are online and if we have to call a committee meeting, we know specifically who to call because based upon that percentage.

Yes, Councilwoman Jones, I can add that and I apologize because I think you asked me that last time and I forgot.

I think I did. Know, you are fine. I get what you go. What's happening. But, yeah, I think that will help a lot. And also, I don't know if you will be able to provide the update, but I'll have to act I have to reach out to Brandon to ask about the SIFT situation concerning that 500,000. I know it's under the Healthy Food Incentive Program, but I've been getting calls and conversations about what exactly is going to happen with that money, and all I have to say is that we have to wait for SIFT and see what's going on. So, I'll catch up with him, but I think the percentage will definitely help to keep us on track and just to red flag programs and projects that we need to. Thank you so much.

Thank you, Chair.

Thank you, Doctor. Jones. Councilman Martinez.

Thank you, Mr. Chair. So I was looking at this and for the most part, the majority of this money has been allocated and expended. Of the big concerns I have looking at this is really the Starbase project. And just do you have an update by that? If not, I can do it by referral. But that's a significant amount of funding not being used from what I can tell.

We can get the details from Director Fosnab. I think he reported last time that the work is happening and there's a they get the work gets done and then the city has sent invoices and pays them. So we'll have to see on the timeline for when those reimbursements are expected.

So we are having a Starbase?

I don't think the Starbase program itself, but the build out of the space is still happening.

Okay.

Thank you, Councilman. Councilperson Gavis.

I did wanna, address, Councilman Martinez that we've opened working with, Capter representative Capter's office and the Metro Parks, and they are in in the works of getting that construction completed. Okay. Thank you, Richard.

Yeah. We're doing the buildup, but we're not going to have a program there. So we're going have an empty really nice box of something we can use for?

There's programming. It's just not that programming.

It's

my understanding. I don't want to

I'll say do it by referral.

The Starbase was through the Department of Defense and I think that that money has been the programming from the Department of Defense has been altered to All something

right. Thank you.

Yep. Thank you, chair.

Thank you very much. Next.

We also have an update, a packet for Wage in hour compliance. Yes. And Commissioner Mori will provide an update in that area.

Okay, good afternoon Commissioner Mori.

Good afternoon, thank you. I'm happy to provide an update on the wage and hour compliance division. As a reminder, brief review, our division is tasked with enforcing ordinances five forty five twenty two, the wage theft ordinance, the seven ninety six and employees right to file a wage complaint, which can involve any broken promise to pay, misclassification of employees or subcontractors or a threat of retaliation kind of sums up those 11 items. And then seven ninety eight contractor and subcontractor registration requirements for the City Of Toledo. Our enforcement is primarily field driven.

The majority of violators aren't on paper. They're working for cash or haven't filed in a number of years. We've lost track of them, so we catch them out in the field. We do field audits to check for tax registration and compliance with the wage theft ordinance. Our most common violation of that is the misclassification of an employee as a ten ninety nine subcontractor.

We have a good partnership with the building inspection department. Nobody could pull a permit for construction without having a valid certificate of income tax compliance. This gives us a good first contact point with an employer and helps us start those conversations. And then we are continuing our partnership that allows us to place a stop work order on behalf of building inspection if we find that a project started that does not have permits. We do that in consultation with the chief building official.

They're fully aware they sign off on and authorize us to do it so we don't have to duplicate city time by sending an inspector then out to somewhere we've already been to. Some recent highlights, I believe you should all have a copy of the postcard that was recently mailed out. This was sent to all Toledo employers either by email or via mail if we did not have an email address. Approximately 9,300 postcards went out over 20,000 emails went out to employers notifying them of the requirement to hang a poster in there where the federal compliance wage and our compliance posters go. There's a notice that the employees can then read that tells them about their rights under the wage theft ordinance to report any theft from their wages.

To date prior to the posting, we've processed 11 employee complaints under seven ninety six. We would expect this to increase now that the posting requirement is the notification as more people become aware of their rights, we expect an increase in call volume. Average recovered for workers, both wages stolen and damages about $15.75 dollars And then we did have a goal of no court cases. Unfortunately, we had an employer that we had to take there. And this morning, we settled that case and received $3,000 for the employee that experienced theft.

It took a little over six months to get them that money, but they were very happy to receive that check

this morning.

And then as far as our other enforcement efforts go, we broke over the $1,000,000 in recovered and owed taxes from employers averaging over $9,000 per week from field stops related to our registration efforts. I'd be happy to answer any questions you may have.

Well, I think that the $1,000,000 is significant. And I know that I think as you continue your hard work that you'll probably see even higher amounts just because this is a real problem in our community. What would you say are the most common methods of finding out about wage theft that you're encountering? People call in or how?

So, the ones that where there's somebody calling in and complaining prior to the wage theft notification going out, the most popular one was just Googling. I had my wages stolen in Toledo and it would generate our website visit. So that's how we got the majority of our referrals. The rest of that was due to field stops. Mark Wilson and myself we do field stops as often as we can and get out there and just visiting construction sites.

We focus specifically on owner pull permits is a high abuse area. Contractors who are not registered or perhaps don't have the credentials to pull a building permit will often talk to the homeowner into pulling that permit and they have to sign on the line that says they're going to perform the work themselves but then they'll have contractor do it. So we do review the through our partnership with Building Inspection review the owner pool permits for both commercial and residential and those are high success rates.

Right and it would seem pretty easy to observe construction crews and equipment, residential areas, business areas, industrial areas.

Sticks out quite a

bit. Yes, great. Councilman Martinez. Thank you, Mr.

Chair. Great work. That's awesome. And I have seen your field stops because you stopped at my house. So I certainly appreciate you guys being very thorough and it doesn't matter who you are. You're still subject to the law. And thankfully my contractor was appropriate and had the proper documentation. Say all that in tongue in cheek because I think what you're doing is not only unique because I've never seen in other municipalities but very important and so thank you for doing that. On top of the fact that you're actually helping the worker get what's rightfully his or hers that they have lawfully earned. So I I really appreciate that.

I just had one random question. Anyone taken, like so the contact information, have they like just tried to be vindictive and go against the employer just for any reason other than just to be vindictive? Like a disgruntled employee just wants to get the owner in trouble for something that happened. Have you ever seen any abuse like that?

We have had several cases that we have declined to take further. I don't want to necessarily speculate what their motivations were, but they did not have the evidence to back up the complaint.

So

we have the discretion to examine the evidence that is presented and we have communication with the employer as well. What documentation do you have? We try to consider it all with the benefit of the doubt given to the employee. Many employees unfortunately do not keep very good records. They just you don't need it until you need it, so they don't know to keep it. But we have had a few cases we have declined to take further.

Got you. And I can't imagine there's a lot of abuse of this. I'm just curious what to make sure that business owners are also protected though too. For unfair for whatever reason, employees, disgruntled employees just want to get back at that for whatever reason. Good to know that there's some discretionary conversations that are had and not everything is guilty until proven innocent, right?

There's one case right now that most likely will be dropped just from the employers provided plenty of evidence and the employee has run out of time.

Thank you.

Okay. Thank you, Councilman. Any other anything else, Commissioner, you wanted to bring up?

No, thank you very much for the time.

Okay. Anything else, Director?

No, thank you.

Okay, our next meeting will be April 29, Wednesday, April 29 at 4PM. We appreciate everyone being here. Councilman Martinez.

Thank you, Mr. Chair. Before you leave, I know we're having a budget hearing and I'm not sure if this is the appropriate time to discuss the finance recommended budget cuts.

Director

Campbell, are you aware that there was a suggested budgetary cuts for the finance department?

Yes, I think we had a vacant position as well as some software.

Correct. Yes. Correct. And I just wanted to if there was any impact on that or kinda like your thoughts on it.

I think with the software is for prevailing wage compliance but we do have three staff members and they're confident that they can handle what they need to in accepting reviewing prevailing wage for our city contracts without the software. Anytime we have a vacant position that we lose it can always be a challenge, but it is one of our vacant positions that is in accounts and has been a manager in the past over AP and AR. As we move forward with some potential enhancements in procurements and payments, it might be a nice position to have but we do understand that it's vacant at this point and that if council decides to unfunded we'll figure out how to get it done.

Okay. So I guess my question is I know some positions in your departments are revenue positive and versus negative, which positions is just kind of neutral or?

Yes, the positions we do have some vacant positions in tax and we would not recommend making any adjustments to those positions. The one that is on the list is in accounts. So it wouldn't have an impact there on revenues the same way a tax position would.

Okay, great. Thank you. That was my bigger concern. All right, thank you.

Okay. Any other business before the committee? Is there anyone in the public that would care to address the committee in our audience? If not seeing none, we stand adjourned.