Cincinnati: Money on hand for $1.2 million streetcar deficit

CINCINNATI (AP) — Officials say they have enough money set aside to avoid asking taxpayers to cover an additional $1.2 million deficit facing the city’s new streetcar.

A Thursday memo from City Manager Harry Black says Mayor John Cranley and the City Council already knew the shortfall could occur and have been saving up for it.

The memo also detailed a new agreement with the private foundation that had committed to help pay for operations, The Cincinnati Enquirer reported today.

That arrangement with the Carol Ann and Ralph V. Haile/U.S. Bank Foundation will allow the city to solidify the operations budget over the first two years. The foundation will pay $900,000 a year for two years toward streetcar operations, according to the agreement.

The city still faces expected structural deficits of more than $680,000 and more than $518,000 each year, according to the memo. Although the memo didn’t specify how those deficits would be covered, Councilman Kevin Flynn said the city should be able to cover the entire two-year deficit with saved-up parking meter money.