CITY OF PICKERINGTON

FINANCE COMMITTEE OF COUNCIL

CITY HALL, 100 LOCKVILLE ROAD

THURSDAY, APRIL 15, 2004

 

REGULAR MEETING

7:30 P.M.

 

1.         ROLL CALL.  Mrs. Riggs called the meeting to order at 7:50 P.M., with roll call as follows; Mr. Wisniewski, Mr. Hackworth and Mr. Riggs present.  Mr. Wright was absent.  Others present were; Dennis Schwallie, Mitch O’Brien, Linda Fersch, Mike Maurer, Frank Wiseman, Lori Aberman and others. 

 

2.         APPROVAL OF MINUTES OF March 23, 2004, Regular Meeting.  Mr. Hackworth moved to approve; Mr. Wisniewski seconded the motion.  Roll call was

taken with Mr. Hackworth, Mrs. Riggs and Mr. Wisniewski voting “Yea.”  Motion passed, 3-0.

 

3.         FINANCE DEPARTMENT

 

            A.        Review and discussion with Dennis Schwallie, Bond Counsel, regarding advisability of soliciting bonds or notes for renewal of $1,550,000 street notes which mature on August 5, 2004.  Ms. Fersch stated Mr. Schwallie is present to give a presentation on whether the City should continue in notes or go to bonds on the street issue that is due in August.  Each committee member should have received an updated report on the City’s indebtedness, a summary and a more detailed report.  In the water and sewer are there are some things in bonds and some things in notes.  The idea was the City could payoff the notes sooner with the funds they are received on capacity fees.  The City does not have anything in the issues that would be paid with income tax, which are mainly street issues.  She continued that since they have combined several note issues in March for a $2,170,000 issue that this older issue could go out for bonds since the market is low and the possibility of interest rates rising in the near future.  This would give the City some diversification. 

 

                        Mr. Schwallie provided each Committee member with an outline of his presentation (Attachment 1). 

 

                        Mrs. Riggs stated it bothers her that they do not have a certainty of project costs in particular where they are going with the sewer plant expansion.  Mr. Hackworth stated he feels what is being addressed is the $1,550,000 for the street improvements.  Mrs. Fersch stated this is for the renewal and the City has combined some things along the way and the higher the issue the more bidders you usually get and in turn you usually get a better interest rate.  She continued back in 2000 the rate 4.9 percent and the current rate for bonds is close to that rate right now.  This would also eliminate the issuance cost each year.  Mrs. Riggs inquired of Mrs. Fersch what does she suggest they do regarding this issue.  Mrs. Fersch stated she thinks this is the time to make this move, the City had a

FINANCE COMMITTEE OF COUNCIL

REGULAR MEETING
APRIL 15, 2004

 

good year financially last year, which is going to be inducive for the City to get good rates.  Last time when the City had the $2,170,000 in the spring there were six bidders.  It also looks as if the Federal Government is going to raise interest rates.  Mr. Schwallie stated it is not to early because this process will take ninety days and they could have this ready to go by May if need be.  Mr. Hackworth inquired since the note was issued in 2000 how long could the City do the bond for?  Mr. Schwallie stated the bond would be for twenty years; you only reduce the term for each year after the fifth full year.  Mrs. Fersch stated that is another plus to doing this now they would be able to extend this twenty years, since they have only had four full years on the current bond.  This rate will be locked in place.  Mrs. Riggs inquired how soon do they have to make a decision on this.  Mrs. Fersch stated if they want to have this for the first Council meeting in May the Committee would have to make the decision tonight.  Mr. Schwallie stated he could handle the logistics of drawing up the ordinance.  Mrs. Fersch stated it takes a couple weeks for the bids to come in.  Mr. Hackworth clarified if they went with the bond the funds would be available in May and they would have to pay the note off in August and provide for an interest payment in December.  Mrs. Fersch stated if they go for notes it would be renewed until next year and then since next year would be the fifth year they would still have the option to do something then, however, interest rates could change.  Mr. Hackworth stated he feels they should go with the bond because it is long term and stable.  Mr. Hackworth moved to direct Dennis Schwallie to create the documents required to convert the Street Note to a Bond for $1,550,000 to be on the May Council agenda as emergency; Mr. Wisniewski seconded the motion.  Roll call was taken with Mr. Wisniewski, Mrs. Riggs, and Mr. Hackworth voting “Yea.”  Motion passed, 3-0. 

 

                        Mrs. Fersch stated there is another issue that they need to address for the Northern Terminus.  Mr. Wiseman and Mrs. Fersch met with Mr. Kope of Stilson for the SIB Loan.  They were going to roll the $2,000,000 that was estimated for the Northern Terminus that will not be covered in the grant into the SIB Loan.  Due to the timing and the fact that the environmental is not done which requires the Northern Terminus to be completed to get the approval on the environmental they need to get the project started.  The plan was to do a note for this project.  Mrs. Fersch stated she would need permission from the Committee for the legislation to go out for the $2,000,000 for this project.  This would be a one- year note.   Mr. Wiseman stated it would be a one- year note only and as soon as the SIB is approved the note would be paid off with the SIB Loan.  Mrs. Fersch stated the SIB Loan is a ten- year loan.  This is not a part of the 80/20 grant, this is for the Northern Terminus of Diley Road.  Mr. Wisniewski moved to direct the Finance Director to obtain a  $2,000,000 interim one year note for the Northern Terminus for Diley Road; Mr. Hackworth seconded the motion.  Roll call was taken with Mr. Hackworth, Mrs. Riggs and Mr. Wisniewski voting “Yea.”  Motion passed, 3-0.

 

 

FINANCE COMMITTEE OF COUNCIL

REGULAR MEETING
APRIL 15, 2004

 

            B.         Review and request for motion to approve draft ordinances amending appropriation ordinance 2003-97.  Mrs. Fersch stated they need an appropriation for $10,000 for the Street Fund for the demolition of the Wright Road property due to the Diley Road Realignment.  The Water Fund needs an appropriation for $2,500 for the refunds for final utility billing overpayments.  The Sewer Fund needs an appropriation for $2,500 for the refunds for final utility billing overpayments.  Under Land and Buildings they need to appropriate $5,000 for bookcases and conference room chairs.  Under the Finance Division the Income Tax Refund category is almost depleted so they need to appropriate $25,000 for the income tax refunds.  Mr. Hackworth inquired what about the $85,000 appropriation needed for the Comprehensive Land Use Plan.  Mrs. Fersch stated that was going to be divided amongst the Water Fund, the Sewer Fund, and the Stormwater Fund and take a little from the General Fund.  Mr. Hackworth moved to amend the appropriation to include up to $85,000 from the four funds for the Comprehensive Land Use Plan; Mr. Wisniewski seconded the motion.  Roll call was taken with Mrs. Riggs, Mr. Wisniewski, and Mr. Hackworth voting “Yea.”  Motion to amend the appropriation passed, 3-0.

 

                        Mr. Hackworth moved to approve the appropriation ordinance 2003-97 with the above-mentioned amendments; Mr. Wisniewski seconded the motion.  Roll call was taken with Mr. Hackworth, Mrs. Riggs and Mr. Wisniewski voting “Yea.”  Motion passed, 3-0.     

 

            C.        Finance Director’s Report

 

(1)               Health Department.  Mrs. Fersch stated the meeting of the Health

Department was moved to tonight, therefore she was unable to attend the meeting. 

 

(2)               CORMA.  Mrs. Fersch stated they have not met since February,

There will be a meeting in May.  They had contracted like the three other communities that are members of CORMA with Turner Lightning Protection.  They completed an assessment of all our buildings to see where the City could avoid lightning strikes.  The water plant had $1000 worth of damage from lightning, then another at the water plant for $30,000 and one at the Police Department for $26,000.  These were not paid directly out of the City’s pocket, however, the insurance paid those claims.  Turner Lightning Protection gave an estimate of $61,000 for coverage for all of the City buildings.  This is something the Committee can review and decide at a future meeting.  The next CORMA meeting is May 18th.    

 

(3)               Investments.  Mrs. Fersch stated each month she tries to do a re-

cap of the investments. 

 

D.        Review and request for motion to approve draft resolution creating a

FINANCE COMMITTEE OF COUNCIL

REGULAR MEETING
APRIL 15, 2004

 

Stormwater Basin Trust Fund.  Mrs. Fersch stated they would be creating a fund for

funds they will be receiving for Stormwater Basins and they need to have this money set aside because the interest on the money will be used to maintain the basins.  There is money currently in the trust fund and they would need to move those funds to this fund.

The City will also be receiving funds from some of the builders as well.  Mr. Hackworth moved to approve a draft resolution creating a Stormwater Basin Trust Fund; Mr. Wisniewski seconded the motion.   Roll call was taken with Mr. Wisniewski, Mr. Hackworth and Mrs. Riggs voting “Yea.”  Motion passed, 3-0.

 

            E.         Review and request for motion to approve draft resolution to adopt the 2005 Tax Budget to meet the July 15, 2004, deadline as set forth in the Ohio Revised Code, Section 5705.28.  Mrs. Fersch stated due to the three Council readings this would need to be handled earlier in the year than it has been in the past.  This is a requirement by state law and should be used as a working tool.  Mr. Hackworth stated he would like Mrs. Fersch to produce a bar chart or graph that might be easier to decipher.  Mr. Wisniewski moved to approve a draft resolution to adopt the 2005 Tax Budget to meet the July 15, 2004 deadline; Mrs. Riggs seconded the motion.  Roll call was taken with Mr. Hackworth, Mr. Wisniewski and Mrs. Riggs voting “Yea.” Motion passed, 3-0.       

 

4.         PERSONNEL DEPARTMENT:  No Report.

 

5.         DEVELOPMENT DEPARTMENT

 

A.                 Development Director’s Report

(1)               Chamber of Commerce Report 

(2)               Rt. 33 S.E. Growth Alliance Report 

(3)               Fairfield County Visitor’s and Convention Bureau Report

(4)               Mid-Ohio Regional Planning Commission Report

 

B.                 Project Updates

(1)               Business Retention and Expansion Study

 

6.         LEGAL DEPARTMENT

 

A.                 Monthly review of law director services

 

7.         CHAIRMAN.  Mrs. Riggs stated she is concerned with the cost of the sewer plant expansion and how the project is going to be paid for.  She continued they had requested information regarding the number of homes this will serve.  Mr. Wiseman stated the report would be in Council packets tomorrow.   

 

8.         OTHER BUSINESS. No other business was brought forward.

FINANCE COMMITTEE OF COUNCIL
REGULAR MEETING
APRIL 15, 2004

 

9.         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. Riggs stated there was no need for the Executive Session this evening.

 

10.       ADJOURNMENT.  There being nothing further, Mr. Hackworth moved to adjourn; Mrs. Riggs seconded the motion.  Mr. Wisniewski, Mrs. Riggs and Mr. Hackworth voted “Aye.”  Motion carried, 3-0.  The Finance Committee adjourned at 9:45 P.M., April 15, 2004.

 

RESPECTFULLY SUBMITTED:

 

 

__________________________________

Lori L. Aberman, Deputy Municipal Clerk