FINANCE COMMITTEE MINUTES

 

FEBRUARY 16, 2005

 

 

The meeting was called to order by acting Chairman Taylor at 5:30 p.m.

 

MEMBERS PRESENT:  Nevin Taylor, Ed Pleasant

 

OTHERS PRESENT:  Kathy House, John Morehart, Tracie Davies

 

AGENDA ITEMS:

 

q       Organization – Mr. Fogt was appointed Chairman.

 

q       Salt  -  Ms. Davies stated a $20,000 appropriation is being requested in case additional salt is needed.  If the salt is not needed this winter, it can be used next fall.  Salt will not be ordered until or unless it is needed.  Just wanted to be proactive.  Salt on hand is approximately 400 ton.  Finance Committee will co-sponsor the legislation.

 

q       Potential street maintenance - List of potential additional streets to be paved was distributed earlier to Council.  Some of the streets on the list will have to be cut.  Once legislation is through Council, plan is to have the bid package ready to go out mid-March and be in contract at the beginning of April. 

 

In a meeting with the Mayor, Mr. Pleasant stated it was discussed they would like Finance to consider spending $500,000-800,000 annually.  Mr. Morehart noted the Mayor suggested borrowing an additional $1M for the next three years and have an amortization of $12,000 per year on each of those notes.  The Mayor asked Mr. Morehart to run the numbers.  Mr. Pleasant stated that makes him nervous, but it is something to keep in mind. 

 

Ms. House stated in the bid and accepted work to be done this summer, $40,000 was incorporated for stormwater work to be done at the same time as paving work.  She asked if $40,000 should be incorporated in this $1M or should it be backed out and payment taken from Stormwater Utility Fund and use that $40,000 towards paving?

 

Mr. Pleasant asked if this stormwater work was related to the areas of difficulty that had been identified?  Ms. House stated it does not address the top four or five projects.  It’s more routine work.  Some would be tributaries to the Main Street lift station. 

 

Mr. Pleasant stated he would prefer to see the full $1M to be used on streets.  Mr. Morehart stated the intent is to have more availability of those dollars instead of right now; the $1M that’s appropriated in a purchase order now essentially would be taking $40,000 of that, which would be expended out of that, and expend it in the stormwater fund.  That’s consistent with how other utilities are handled.  Mr. Pleasant expressed concern that we’re not targeting our major areas of stormwater difficulties.    He asked about the term of the assessment.  Two-year rate was set, but rates would be in place beyond two years.  Feels it was on-going.  Administration will check verbiage of the legislation.  Mr. Pleasant feels we need to show we’re doing something with this assessment and try to fix one of the major stormwater projects. 

 

Mr. Taylor wants to see full $1M go to streets.  Take stormwater funds to pay for stormwater repairs.

 

Mr. Pleasant suggested revisiting the stormwater project list.

 

It was agreed that an appropriation would be brought to Council for the $40,000 for stormwater.    Finance Committee agreed to sponsor.

 

q       CHIP Program – Ms. House believes that 60% of the CHIP grant  should be expended in time to apply for the next round of CHIP money.  The applications for the ’06 monies were not available until February 7th.  Legislation can be presented in time for three readings, but it would have to be without the completed application.  If we have to wait for completed application, timing would not allow for three readings and would require passing as an emergency.  Application can be ready by March 24 and must be filed by April 26th.  It was decided the legislation would be introduced on March 10th, with the application completed for Public Hearing on March 24th.  Legislation will still have to be passed as an emergency.

 

q       4th of July festivities – Mr. Taylor asked about the possibility of coming up with $2,500 for this event.  County has agreed to match the City’s donation.  This amount would be for fireworks and insurance, not the rest of the events planned for the day.  Discussed where this money would come from.  Possibility of using Parks & Rec funds.  Administration will check.

 

Mr. Pleasant asked if by donating, are we opening up another door and referred to Joint Rec Board asking for City monies.  Referred to legislation where City gives 1/7 of a 3/7 donation to Joint Rec Board.  In the past, City allowed the hookup of water and sewer to offset City’s donation.  City has said no to further donations at this time until a meeting is held.  To date, there has been no meeting.

 

q       General discussion of ways to improve the City’s financial position – Reservoir meeting will be held next Thursday.  Will be an open meeting much like was held for WWTP. 

 

In Mr. Fogt’s absence, Mr. Pleasant mentioned impact fees were an issue. He shared in Mr. Reams’ absence, a traffic impact study was 85%-90% complete and it stopped.  Mr. Morehart stated certain requirements need to be met before impact fees could be done, such as substantial capital improvements.  There is a limit as to what you can do for capital improvements. Impact fees may not be able to be used for certain street improvements.

 

Mr. Pleasant stated the Mayor said in three years there might be times that the finances of the city was not to his anticipated difficulty and his eyes have been opened, and in three years, the consideration for increased income taxes was realistic. 

 

Mr. Taylor was approached by a Millcreek resident asking if they would be offered some sort of a package deal if they wanted to tie into the City sewer or water.  Mr. Taylor told her that had not been discussed publicly.    Ms. Davies noted there aren’t going to be any water and sewer lines except for going under 33 to the plant in Millcreek Township, because the rest are affluent lines.  There is no line for raw sewage to be able to tap into.  That will only happen if development happens.  The City has no money to extend services.

 

Mr. Taylor asked for tips on ways to improve City finances.  Mr. Morehart stated continue expense control, continue quarterly meetings with department heads.  He noted it has worked very well in the past.

 

TIF’s can help.

 

Look at growth paying for itself.

 

Local government funds are OK this year, but will be cut in 2006 through June 30, 2007.  Anticipated cuts to the City will be 20%.  It will amount to about $85,000 based on 2004.  Budget will have to be adjusted in 2006.

 

Wal-mart Super Center is a go.  Home Depot is going through Design Review process.  Additional employment will add to income tax revenue.

 

Mr. Taylor recommended constant monitoring, continue monthly meetings and communication.

 

In closing, Mr. Pleasant noted in a meeting with the Mayor, it was felt that it would be advantageous for Committee Chairmen to give a report of their agenda items under “comments” on Council agenda.

 

ADJOURNMENT:  Meeting adjourned at 6:20 p.m.