5 min read

Jan 17, 2025

How Rising Costs, Failed Levies, and Public Scrutiny Are Shaping Bucyrus’ Financial Future

By Logan Andrew | Editor-in-chief, FreeWire

— 8:56PM Update- We have corrected the 2024 Safety Forces levy to reflect the fact that it could only only be used for equipment, not staffing.

The debate surrounding Bucyrus’ 2025 city budget has captured significant public attention, thanks in no small part to Council President Kurt Fankhauser’s pointed criticisms of the process. Fankhauser — along with his allies online as well as the other side of the railing — have accused Finance Committee Chairman Kevin Myers and the administration of rushing the budget through with little transparency, violating Ohio Sunshine Laws, and approving oversized raises for city employees, all while the city faces a $300,000 deficit.

To better understand these allegations and provide clarity, FreeWire sat down with Mayor Bruce Truka, Auditor Kali Lewis, Law Director Brandon Gobrecht, Service Director Tommy Starner, and Administrative Assistant Lisa Stuckman. Together, they discussed the budget process, its challenges, and the realities behind the claims.

Fankhauser and White: Raising Concerns About the Budget Process

Council President Kurt Fankhauser has been vocal in his criticisms of the 2025 budget process, often echoed by Greg White, who frequently uses public comment sessions to express similar concerns. At a recent council meeting, White directly addressed accusations that he is merely a conduit for Fankhauser, asserting that he writes his own speeches. Despite this declaration, the nature of their collaboration continues to invite speculation.

Among Fankhauser’s primary accusations is the claim that the budget was pushed through without proper legislative review, bypassing the Finance Committee’s role in the process. He also criticized a $4.25 hourly raise for city employees as excessive, citing the city’s ongoing $300,000 budget deficit. While his frustrations have resonated with some residents, these claims don’t fully align with the facts.

Mayor Bruce Truka explained that the budget timeline and process were typical of prior years. “The budget always comes together toward the end of the year,” Truka said. “The Finance Committee’s job is to review and ask questions — it’s not their responsibility to draft the budget. That falls to the administration.”

Auditor Kali Lewis further clarified the Finance Committee’s role: “The Finance Committee can technically decide on raises or cuts, but typically these decisions are made collaboratively by Council, Administration, and the Unions as part of contractual agreements. Cuts, if necessary, should ideally occur at the department level, where expertise about projects and mandates exists.”

As for the $4.25 hourly pay raise, Lewis explained that it was part of union negotiations under the AFSCME contract. Both the administration and council approved the agreement to avoid delays or arbitration, which could have led to additional costs. “Arbitration is not the same as litigation,” Lewis noted, “but it could result in higher expenses if the process were drawn out.”

The Budget Process: Transparency and Realities

The 2025 budget was developed through a collaborative process involving department heads, the administration, and council. Department heads submitted requests for staffing, equipment, and operational needs, which the auditor’s office compiled into a detailed spreadsheet comparing projected expenses with anticipated revenues.

“Once the preliminary numbers are entered, the administration reviews them and determines what adjustments need to be made,” Lewis explained. “The Finance Committee then examines the budget before it moves to the council for final approval.”

However, balancing the city’s financial needs with its revenue constraints was no easy task. The 2025 budget includes a $300,000 shortfall, which will be covered by carryover funds — a temporary fix that underscores the city’s financial challenges.

What’s Driving the Deficit?

Several key factors have contributed to Bucyrus’ financial strain:

• Increased Personnel Costs: The fire department’s assumption of ambulance services has significantly increased staffing and equipment expenses.
• Failed Levies: The November 2024 property tax levy for safety forces failed, depriving the city of critical funding for equipment.
• Economic Pressures: The lingering effects of the COVID-19 pandemic and the closure of a major factory have reduced income tax revenues.
• Depletion of Relief Funds: Federal COVID relief dollars, which had been used in prior years to sustain safety forces, are no longer available. In 2023, for example, the city utilized $424,898.25 in COVID funds to replace wages for safety forces, and a police department grant covered the salaries of two officers for two years. These temporary resources are now exhausted.

Union Negotiations and Arbitration

Safety forces now account for approximately 80% of the general fund budget, a figure that has grown due to union contract agreements and arbitration rulings.

“When the fire department took on ambulance services, they argued for higher pay due to the increased workload,” Lewis said. “The union’s demands went to arbitration, and the arbitrator awarded a higher raise than the administration initially proposed. Council approved the recommendation to avoid further delays and expenses.”

Similar dynamics played out with the police department, which sought pay parity with the fire department following the passage of a 2023 safety forces levy.

Long-Term Financial Sustainability

To address Bucyrus’ financial challenges, the city must focus on both immediate and long-term solutions. Auditor Lewis emphasized the importance of developing a five-year capital improvement plan to better manage equipment replacements and infrastructure needs.

“The city is already at a point where it cannot afford to replace large equipment, such as ambulances, the ladder truck, and police cruisers,” Lewis explained. “Without the property tax levy, alternative revenue streams will need to be identified to fund these essential purchases.”

She also proposed increasing revenues through measures such as revisiting the failed property tax levy or reconsidering the out-of-town worker tax credit.

“Ultimately, we need to either increase revenues or decrease expenses,” Lewis said. “If revenues can’t be increased, cuts to safety forces may become unavoidable — an option no one wants.”

Mayor Truka agreed, expressing concern about relying on carryover funds. “It’s not a sustainable solution,” he said. “We need to find long-term, reliable revenue sources to avoid deeper cuts in the future.”

Strengthening Transparency and Public Trust

To foster greater transparency, the administration has made monthly financial reports available online through the city’s Documents-On-Demand platform. Citizens are also encouraged to contact the auditor’s office with questions about the budget.

“Transparency is critical,” Lewis said. “We want residents to understand the complexities we’re dealing with and the reasoning behind our decisions. My office is always open for questions.”

Conclusion

The 2025 Bucyrus budget reflects the city’s ongoing struggle to balance rising costs with stagnant revenues, compounded by past decisions and external economic pressures. While Fankhauser and White’s criticisms have spotlighted valid concerns about transparency and fiscal responsibility, their claims oversimplify a process that involves tough compromises.

For residents eager to secure Bucyrus’ financial future, staying informed and engaged is essential. Understanding the challenges and tough decisions inherent in the budget process is the first step toward a sustainable path forward.