FINANCE COMMITTEE OF COUNCIL

CITY HALL, 100 LOCKVILLE ROAD

TUESDAY, NOVEMBER 17, 2009

 

SPECIAL MEETING

 

7:00 P.M.

 

1.         ROLL CALL.  Mr. Fix called the meeting to order at 7:00 P.M., with roll call as follows: Mr. Sabatino, Mrs. Hammond, Mr. Fix, Mr. Sauer, Mrs. Sanders, and Mr. Wisniewski were present.  Mr. Smith was absent.  Others present were Chief Mike Taylor, Mayor O’Brien, Lynda Yartin, Linda Fersch, Chris Schornack, Ed Drobina, Greg Bachman, Gavin Blair, Nate Ellis, and others.

 

2.         SCHEDULED MATTERS:

 

A.        Review and discussion regarding revised debt retirement schedule.  Mr. Fix clarified a revised debt retirement schedule had been provided to everyone.  Mr. Schornack stated he had applied an additional $100,000 to the debt retirement schedule to the Courtright/Diley/Downtown notes.  Mr. Schornack stated after making the changes for the insurance, and still keeping the carryover at approximately $1.5 million, he had applied the $100,000 to these notes.  He stated if he would not feel comfortable with a higher amount at this time because there could be something unforeseen come up.  Mr. Fix inquired if Council could get a commitment from Mr. Schornack that during the Finance Committee meeting of July 2010 this situation could be revisited and if there is an opportunity to retire more debt at that time they could take advantage of that opportunity.  Mr. Schornack stated that would be possible.  Mr. Sauer stated his question would be why those particular notes were chosen over the other notes.  Mrs. Fersch stated there were two or three years we did not pay any principal on those notes and if we go out for bonds we would not be able to go for 20 years, so she wanted to make sure we had paid something down on that.  Mrs. Fersch stated then next year the smaller notes could be retired.  Mrs. Fersch further stated our debt is due in February, however, when the principal is due at the end of next year we could add more to the principal on the police station.  She stated right now we are paying the scheduled principal, but the more you pay on the principal since it is a variable interest rate, you save money that way.  Mr. Fix stated then if we determined in July that we had an extra amount we could use that then for the police department debt which is due December 31st.  He further clarified that is General Fund debt.  Mr. Fix questioned if, given that, everyone was comfortable with leaving it at the $100,000 tonight and reviewing it again in July.  Mr. Wisniewski stated he would be fine with that as long as we didn’t spend any extra funds somewhere else.  Mrs. Fersch stated she would also like to point out that we have estimated income tax at two percent and if something could happen that it does not come in at two percent, and we already know our Local Government Funds will be decreased, there could be other revenues decreased during the course of the year that we do not know.  Mr. Wisniewski stated he would defer to Mrs. Fersch on this issue.  Mr. Sabatino questioned why we would not just go with $130,000 and pay the low one off in its entirety instead of putting $100,000 on something big.  Mrs. Fersch stated the municipal building notes are paid from impact fees, not from General Fund, and we can only pay what was in the fund.  Mr. Wisniewski clarified that impact fee funds cannot be used to pay for any of the Courtright/Diley/Downtown notes.  Mr. Sauer clarified that funds would not automatically be applied to debt, but would go into the General Fund.  Mrs. Fersch stated if the note is not paid off at that point it should definitely go there.  Mr. Fix clarified that everyone would like to have this issue reviewed by Finance Committee at their July 2010 meeting. 

 

B.         Review and request for motion to approve draft ordinance adopting the Budget for the 2010 Fiscal Year beginning January 1, 2010.  Mr. Fix stated the budget ordinance had been provided to everyone with all of the changes included that were finalized at the last Finance Committee meeting.  Mr. Wisniewski clarified that with regard to the Health Department, the school districts that are within the City will be serviced by Franklin County Health Department and the schools that are outside the City will be serviced by the Fairfield County Health Department, beginning January 1, 2010.  Mrs. Fersch stated she had been trying to get something coordinated to put into the water bills and to send to the schools, however, the Health Department has been busy with the H1N1 issue, so she will be getting something put together very shortly.  Mrs. Sanders moved to approve the proposed budget for 2010 and forward it to Council; Mr. Sauer seconded the motion.  Roll call was taken with Mrs. Hammond, Mr. Fix, Mr. Sabatino, Mr. Sauer, Mr. Wisniewski, and Mrs. Sanders voting “Yea.”  Motion passed, 6-0. 

 

3.         ADJOURNMENT.  There being nothing further, Mr. Sauer moved to adjourn; Mrs. Hammond seconded the motion.  Mr. Sauer, Mr. Fix, Mrs. Sanders, Mrs. Hammond, Mr. Wisniewski, and Mr. Sabatino voted "Aye."  Motion carried, 6-0.  The Special Finance Committee adjourned at 7:15 P.M., November 17, 2009.

 

RESPECTFULLY SUBMITTED:

 

 

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Lynda D. Yartin, Municipal Clerk