WEDNESDAY, SEPTEMBER 8, 2010

REGULAR MEETING

7:00 P.M.

1. ROLL CALL. Mrs. Sanders called the meeting to order at 7:00 P.M., with roll call as follows: Mr. Blair, Mrs. Hammond, Mr. Barletta, Mr. Sauer, Mrs. Sanders, and Mr. Wisniewski were present. Mr. Fix arrived at 7:06 P.M. No members were absent. Others present were Mayor O’Brien, Bill Vance, Lynda Yartin, Chris Schornack, Linda Fersch, Ed Drobina, Greg Bachman, Stephanie Spencer, and others.

2. APPROVAL OF MINUTES OF August 4, 2010, Regular Meeting. Mr. Sauer moved to approve; Mr. Barletta seconded the motion. Roll call was taken with Mrs. Hammond, Mr. Blair, Mr. Barletta, Mr. Sauer, Mr. Wisniewski, and Mrs. Sanders voting “Yea.” Motion passed, 6-0.

3. FINANCE DEPARTMENT.

A. Finance Director’s Report. Mr. Schornack stated he had provided a written report and he would be happy to take any questions. Mr. Schornack stated he would like to introduce Stephanie Spencer our new Deputy Finance Director to the Committee. Mr. Schornack stated he had distributed the five year forecast that was presented to the FOP during negotiations. He stated he would like to point out the comparison of the general fund to our police in the respect that the police fund is outpacing the general fund expenses at a much greater rate than we can continue to operate at. He stated in 2010 we are estimating that the police fund expenditures will be 121 percent of our general fund. Mr. Wisniewski clarified the police levy will generate about $1.4 million this year and we transfer about $2.5 million. Mr. Schornack stated over the past five years it has increased quite substantially. Mr. Schornack stated he had also provided a breakdown of expenses and beginning and ending balances for each year. Mr. Schornack stated the ending fund balance in 2012 is where we start going into the negative balance. He stated these are just assumptions using a two percent increase on expenses each year. Mr. Fix stated as he understood it then, we can survive until the end of 2010 with current expenditures. Mr. Schornack stated the general fund at that point would be in the negative by $460,000, and the other funds would be positive. Mrs. Sanders stated it seemed that they should start doing some planning now and Mr. Schornack stated he was bringing this up tonight because we will need to reduce our expenses or do something with our revenues. Mr. Vance stated these assumptions will obviously not accurately reflect what we actually experience during this budget process for 2011, and this is to provide information if we don’t do anything different. He stated the plan is to do some things differently, although we cannot continue the trend to use the reserves to balance the budget. He stated the budget process is just starting so he will have more specifics in a month or so. Mr. Fix inquired what an appropriate carryover would be and Mr. Schornack stated it is recommended 15 percent of your total general fund budget, so for us it would be roughly $1.2 million at a minimum. Mr. Wisniewski stated then it is unacceptable to continue this any further than 2010, and at the end of this year we will be right at the minimum of where we should be. Mr. Fix stated then we are fine right now, but we cannot dip into it any more and Mr. Schornack stated as Mr. Vance had noted we will have to present a balanced budget without dipping into reserves any further. Mr. Fix stated if they wanted an issue to be on the May ballot something needs to be at the Board of Elections by the end of January or first of February. He stated this is September so by October they should have something to Council to vote on, so to wait until we see what the budget cuts for next year would be did not seem like an option to him. Mr. Sauer stated his concern would be there would be less debt payment over the next year with nothing to increase revenue, road paving would probably be cut and that would put us more behind the curve and the roads would deteriorate even more, and with the issues we are seeing in different areas of the city there would be no more police officers. He stated the question he had would be what type of service we would be offering the citizens if we do not find a way to provide those basic necessities and services. He stated if we looked at a tax increase of two percent with a 100 percent credit the majority would receive a tax cut. Mr. Fix stated he would ask everyone to consider that they would not be raising taxes; the only people who can raise the taxes are the citizens. He stated it is Council’s job to provide them the information that they need to make that decision, to tell them if they approve a tax increase what would be done with the money that came in, and if they chose not to approve a tax increase what cuts would be made to balance the budget. Mr. Fix stated Council needs to provide that information, the citizens make the choice, and Council executes that choice. Mrs. Hammond stated she is well aware of the fact that we need a tax increase; however, she was not in favor of giving away the credit that we already have. She stated she would compromise with not raising the amount of money they pay, but she was not willing to give away that amount of money. She stated she would not vote for something that said some get a big tax break while others are getting doubled. Mr. Wisniewski stated it was either that or a police levy and Mr. Sauer stated a police levy would hammer everyone. Mr. Sauer stated he hates tax increases as much as anyone, but in looking at the expenses that are possibly coming down the road, they far exceed anything that would come out of a tax increase. He stated road construction is a fortune compared to repaving and crack sealing and debt payment interest over the years just compounds so you just keep putting it further down the road and end up paying more than three times what you paid for the original project in principal. He stated further with regard to police officers, he did not see how you put a price tag on safety. Mrs. Sanders stated she could not imagine people arguing against safety, roads, and debt because it was hard to debate the need for all of that. Mr. Fix stated it was his understanding that there are enough council members present to put something forward and he felt something needed to be put forward. Mr. Wisniewski stated he felt they needed some draft legislation to review at the next Finance Committee meeting. Mayor O’Brien stated in order to effectively run a campaign, that must be financed and the money just doesn’t exist for a campaign. Mr. Fix stated he would be willing to take $25,000 from the carry over for that. Mr. Barletta stated if he were an average citizen reading his newspaper and he saw the City hiring a Development Director, new City Manager, Assistant Finance Director, sees a water tower going up, and reads about reverse-osmosis he would not care about fund accounting and that some of that is already paid for; he would only know he is paying two and one-half percent to Columbus, one percent to Pickerington Schools, and one-half a percent to the City of Pickerington; he hasn’t had a raise in a long time and might not even have a job anymore, and the City is asking him for more money. Mr. Wisniewski stated it would not be asking for more money, it would be giving one-half a percent of his money back to him. Mr. Barletta stated most of Council works in Columbus, and he is not arguing need, he is arguing that if we invest in a campaign with the narrative that has played out in the newspaper, for an income tax levy there is a very low probability of success. Mr. Wisniewski stated he would ask how Columbus and Westerville passed an increase in a worse economy than we are facing now, so he did not feel it was impossible, it is an education process. Mayor O’Brien questioned if we should make cuts to public safety before asking the public to speak, and Mr. Barletta stated he would probably vote to ask the people to speak. He stated, however, the public will not answer the question the way we want it until they feel the pain. Mr. Fix stated we would have to do a great job of running a really strong campaign and making sure that the newspapers are not the ones telling our story. Mr. Fix continued that we must tell our story; we did not do that last time and we got hammered for it. Mr. Fix stated he knew there were groups who had been very successful in helping communities like ours get something like this done, and it is all about communication. He stated if we put out there exactly what is going on and exactly what we are faced with, most people looking at it from a logical standpoint and wanting to live in a great community will vote for that. Mr. Wisniewski stated there are three ways to bring money into the City, property tax, income tax, or bringing new business in, and even bringing in a business with a $5 to $10 million a year payroll would not solve our problem and is not realistic. He stated that leaves property tax, income tax, or cutting services. Mr. Wisniewski stated he felt we have cut our services back pretty far and we are hoping to increase our economic development through the hiring of an Economic Development Director, but there is one place to cut and that is staff. He further stated in looking at staff levels, there is only one place to cut and that is the police department. Mr. Vance stated as a newcomer he can tell Council we are definitely doing more with less across the board. Mr. Fix clarified that a two percent income tax with the two percent credit would generate approximately $1.3 million. Mrs. Hammond stated if it were a two percent tax with a 25 percent credit, that would be another $1.4 million. Mr. Schornack stated that was correct, it would raise about 2.8 million. Mrs. Hammond stated she was not in favor of giving up income we already have to get less in the long run. Mr. Sauer stated the goal is to increase revenue in the City by going to the two percent with 100 percent credit by $1.3 million so he did not understand what we were giving away. Mrs. Hammond stated that would only keep what we have going, it won’t give us any additional funds. Mr. Sauer stated in today’s climate where people are not getting raises and are struggling to keep their job, he did not see how we could convince them that in order for the City to do all these wonderful things we need to increase their tax to two percent and not give them any kind of a break when we have the ability to do so. Mrs. Hammond stated that still did not help the people that live in the City and work in the City; we would punish them and reward everyone else. Mrs. Sanders clarified the last income tax increase was when the City was established in the 1980’s, and that did not seem very realistic with the way the costs have been going up. Mr. Wisniewski stated this proposal would give back the one-half percent increase that people who live in Pickerington and work in Columbus just got. Mrs. Sanders stated she also felt that needed to be communicated because she did not think a lot of people understood that. Mr. Sauer stated he felt that not only needed to be communicated, but needed to be included in the ballot language as well. Mr. Wisniewski moved to authorize the City Manager to draft legislation to bring forward to the next Finance Committee meeting with a proposal for a two percent increase with a 100 percent credit; Mr. Sauer seconded the motion. Roll call was taken with Mrs. Hammond and Mr. Blair voting “Nay,” and Mr. Sauer, Mr. Fix, Mrs. Sanders, Mr. Barletta, and Mr. Wisniewski voting “Yea.” Motion passed, 5-2.

B. Review and discussion regarding budgeted 2010 police officer position. Mr. Vance stated he has had some discussion with the Chief about the additional officer in this budget and this year’s budget was once again budgeted with reserves, which means going into the next budget year there is a lot of fiscal uncertainty. Mr. Vance stated at this point in time he would recommend we do not fill this position and if there is an additional officer in next year’s budget it would be filled in January. He stated if there is not going to be an additional officer, the Chief will know that as well. Mrs. Sanders stated she concurred with Mr. Vance and ascertained there was no further discussion on this issue.

C. Review and request for motion to approve draft ordinance amending the 2010 appropriation, Ordinance 2009-91. Mr. Schornack stated he apologized for getting this draft to the Committee a little late. He stated the first item is for the Personnel Director so we can hire someone since Mrs. Fersch will be leaving shortly. He stated we were looking to start that position in the beginning of November to allow for transition into next year. Mr. Schornack stated that position is paid out of the General Fund, Water and Sewer. Mr. Schornack stated under transfer/reimbursements the Chief requested the appropriation be included for a surveillance camera for Sycamore Park and he understood Mr. Vance would like to address this issue. Mr. Vance stated he did not have conversation with the Chief about this camera but he has spoken with Mr. Drobina, and at this point in time he felt it was premature to invest this amount of money in a camera when there are some other things we can at least try in regard to increasing visibility or some kind of special operation to help us with some more nuisance situations in the parks before we invest $6,000. Mr. Schornack stated if no-one has a problem, he will remove this from the draft ordinance. Mr. Fix moved to add an appropriation of $25,000 from the appropriate fund to fund a communication effort for the tax issue; Mr. Wisniewski seconded the motion. Roll call was taken on the motion to add this appropriation with Mrs. Hammond and Mr. Blair voting “Nay,” and Mrs. Sanders, Mr. Sauer, Mr. Wisniewski, Mr. Fix, and Mr. Barletta voting “Yea.” Motion passed, 5-2. Mr. Sauer moved to remove the $6,500 appropriation for the surveillance camera; Mr. Fix seconded the motion. Roll call was taken with Mrs. Hammond, Mr. Fix, Mr. Barletta, Mr. Blair, Mr. Wisniewski, Mrs. Sanders, and Mr. Sauer voting “Yea.” Motion passed, 7-0. Mr. Fix moved to forward the appropriations as amended to Council; Mr. Sauer seconded the motion. Roll call was taken with Mrs. Hammond and Mr. Blair voting “Nay,” and Mr. Sauer, Mr. Barletta, Mr. Fix, Mr. Wisniewski, and Mrs. Sanders voting “Yea.” Motion passed, 5-2.

D. Review and discussion regarding 2011 Budget schedule. Mr. Schornack stated he had provided a schedule and ascertained there were no conflicts for the dates proposed. He stated this schedule is very similar to last year and Mr. Wisniewski inquired if the time could be changed to 6:30 P.M. with Finance scheduled for 7:30 P.M. on the 6^th as the 6:00 P.M. was hard for everyone. There were no objections to the schedule with the time change.

4. PERSONNEL DEPARTMENT.

A. Personnel Director’s Report. Mrs. Fersch stated she had provided a written report to the Committee and she would answer any questions. Mrs. Fersch stated she had completed the job description for the Human Resources Director and she will begin advertising that position tomorrow with the applications and resumes due by September 30, 2010, and interviews in mid-October. She stated further they were moving forward with the Utilities Operator I full-time position and interviews were scheduled to fill the police officer position created by a resignation. She stated further a full-time dispatcher resigned and that position was filled by a part-time dispatcher so she would be interviewing to fill the part-time position. Mrs. Fersch stated she is working on our insurance renewal and she hoped to have that by October 15^th. Mr. Wisniewski clarified Mr. Vance did recommend we fill the vacated police officer position. Mrs. Fersch stated based on the earlier discussion if the Committee desired she would amend the Pay Plan to reduce the police officer number to reflect the removal of the additional police officer.

B. Review and request for motion to amend Employee Pay Plan and Authorized Strength for 2010. Mrs. Fersch stated this amendment would change the Utility Operator I position from part-time to full-time and remove the one additional police officer position. Mr. Fix moved to approve and forward to Council; Mr. Sauer seconded the motion. Roll call was taken with Mr. Barletta, Mr. Wisniewski, Mr. Fix, Mrs. Sanders, Mrs. Hammond, Mr. Sauer, and Mr. Blair voting “Yea.” Motion passed, 7-0.

6. CHAIRMAN:

A. Strategic Plan – Update. Mrs. Sanders stated Council had a very successful retreat and Mayor O’Brien and Mr. Vance will be forwarding more information on the Plan. Mayor O’Brien stated he was considering taking this item from Finance Committee and including it on Council agenda if there were no objections. Mayor O’Brien stated he had received the draft version of the Strategic Plan update and he has some concerns to be reviewed and he would also like to give Ms Crotty a chance to review it as there are some development issues included. Mr. Fix clarified that Mayor O’Brien would like any council member to forward their comments or input to him. Mrs. Sanders stated this item would be removed from the Finance agenda.

B. Technology Assessment Subcommittee – Update. Mrs. Sanders stated she would request this item be removed from the Finance agenda.

7. OTHER BUSINESS:

A. Review and discussion regarding Ordinance 2010-19, an ordinance approving the rezoning and final development plan for the approximate 16.06 acre Ebright/Homestead parcels. Mr. Vance stated he has a meeting schedule with the developer’s representative tomorrow and he has no report this evening. Mrs. Sanders stated this would remain on the agenda at this time.

B. Review and request for motion to approve the Pickerington Local School District request for impact fee waiver. Mr. Fix clarified the School District is requesting a waiver of $2,189 in impact fees and because this is a government agency the City does not have to make up this amount. Mr. Schornack stated this is a fairly routine procedure and we have waived these fees in the past. Mr. Fix moved to approve the impact fee waiver request of the Pickerington Local School District in the amount of $2,189; Mr. Sauer seconded the motion. Roll call was taken with Mrs. Hammond, Mr. Barletta, Mr. Fix, Mr. Blair, Mr. Wisniewski, Mr. Sauer, and Mrs. Sanders voting “Yea.” Motion passed, 7-0.

C. Review and request for motion to approve draft ordinance authorizing the City Manager to apply for Ohio Public Works Commission grant funds for Long Road improvements from Diley Road to Colony Park. Mr. Bachman stated this came from discussion at Service Committee and he had provided a memo revising the project financing breakdown. Mr. Bachman stated the application is due on October 1^st and the breakdown now proposed is for $800,000 from OPWC, $100,000 from Safe Routes to School, and $240,000 from our Stormwater Utility Fund. Mr. Bachman stated he did not feel we had a very good chance to get the grant, but this was a way to submit a project that does not involve any money from the General Fund. Mrs. Sanders stated we would not know our chances unless we submitted the application. Mr. Fix moved to approve and forward to Council; Mrs. Sanders seconded the motion. Roll call was taken with Mr. Blair, Mrs. Hammond, Mr. Barletta, Mr. Fix, Mr. Sauer, Mrs. Sanders, and Mr. Wisniewski voting “Yea.” Motion passed, 7-0.

8. MOTIONS:

A. Motion for Executive Session under Section 121.22(G)(1)b, Matters involving an employee’s or public official’s employment, Section 121.22(G)(2), Purchase or sale of public property, Section 121.22(G)(3), Conference with law director regarding pending or imminent court action, and Section 121.22(G)(4), Matters involving bargaining sessions with public employees. Mrs. Sanders moved for Executive Session under Section 121.22(G)(3), conference regarding pending or imminent court action; Mr. Sauer seconded the motion. Roll call was taken with Mr. Fix voting “Nay,” and Mrs. Hammond, Mr. Blair, Mr. Barletta, Mr. Sauer, Mr. Wisniewski, and Mrs. Sanders voting “Yea.” Motion passed, 6-1.

Finance Committee adjourned into Executive Session at 8:07 P.M, and reconvened in open session at 8:28 P.M.

9. ADJOURNMENT. There being nothing further, Mr. Wisniewski moved to adjourn; Mrs. Sanders seconded the motion. Mr. Sauer, Mr. Fix, Mrs. Sanders, Mrs. Hammond, Mr. Barletta, Mr. Wisniewski, and Mr. Blair voted "Aye." Motion carried, 7-0. The Finance Committee adjourned at 8:29 P.M., September 8, 2010.

RESPECTFULLY SUBMITTED:

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Lynda D. Yartin, Municipal Clerk