CITY OF
PICKERINGTON
FINANCE COMMITTEE OF
COUNCIL
CITY HALL, 100 LOCKVILLE ROAD
THURSDAY,
MAY 20, 2004
REGULAR
MEETING
7:30
P.M.
1. ROLL CALL. Mrs. Riggs called the meeting to order at 7:30 P.M., with roll call as follows: Mr. Wisniewski, Mr. Hackworth, Mrs. Riggs, and Mr. Wright were present. No members were absent. Others present were: Frank Wiseman, Lynda Yartin, Linda Fersch, Susan Crotty, and others.
2. APPROVAL OF MINUTES OF APRIL 15, 2004, Regular Meeting. Mr. Hackworth moved to approve; Mr. Wisniewski seconded the motion. Roll call was taken with Mr. Wright abstaining, and Mr. Hackworth, Mrs. Riggs, and Mr. Wisniewski voting “Yea.” Motion passed, 3-0.
3. FINANCE DIRECTOR:
A. Review and request for motion to approve draft ordinance amending appropriation ordinance 2003-97. Mrs. Fersch stated the Committee had received a draft appropriation ordinance and in the General Fund she was requesting a $5,000 increase in the Finance Division for income tax refunds and $2,500 in Transfers/Reimbursements to refund the Hampton Inn owner the money he had paid as his share on the cancelled clock tower project. In the Street Fund she was requesting an increase of $5,000 for legal fees for the street bond issue. In the Diley Road Widening Fund an increase of $800,368.20 for the difference needed for borrowing for Phase III of the project. In the Water Fund, an increase of $19,000 for half of the wages for the new position of billing clerk for the remainder of 2004. In the Sewer Fund an increase of $19,000 for the second half of the wages for the new billing clerk for the remainder of 2004. Mrs. Fersch stated the Committee is going to consider the contract for the public information consultant later this evening, and she would need an appropriation for that contract. Mrs. Fersch stated she could decrease the Worker’s Compensation Fund by $22,000 and increase the Public Information Department by that same amount if the committee desires. Mr. Wright moved to approve the appropriations as outlined by the Finance Director and to include the increase of $22,000 in the Public Information Department and the decrease of that same amount in the Worker’s Compensation Fund and forward to Council; Mr. Wisniewski seconded the motion. Roll call was taken with Mr. Wisniewski, Mr. Wright, Mrs. Riggs, and Mr. Hackworth voting “Yea.” Motion passed, 4-0.
B. Review and request for motion to approve draft resolution for the submission to the electors of the City of Pickerington, Ohio, of the question of continuation of the taxation of a shareholder’s distributive share of net profits of an S corporation. Mrs. Fersch stated Mrs. Eichner had briefed the Committee on this issue at the last meeting, and had provided additional information in their packets. Mrs. Fersch stated in order to put this on the ballot, it must be passed by August. Mr. Wright stated there is a plus and minus side to this issue. He stated the plus side was that you could treat the taxation of the corporation as a C corporation, which means you will collect the tax because it is an Ohio resident corporation, so you are collecting the money on the profits of that corporation. He continued that, on the minus side, if you did it as a C corporation, and you have a non-resident S corporation, you lose the tax because you cannot tax it as a pass through since it is a non-resident corporation, and you cannot tax the corporation because it is not an Ohio corporation. Mr. Wright stated you need to figure out if the S corporations in your community are Ohio based or not Ohio based, and if more of them are not Ohio based you want to keep it as pass through so you get the resident’s tax. Mrs. Fersch stated you must also look at the residents, because we have more residents than we do corporations, and we would only be able to tax the amount that is considered W2 wages. Mr. Wiseman clarified that the City will receive more income by continuing the taxation of an S corporation the way we are. Mr. Wright stated most of the S corporations in Pickerington are probably small anyway, and this just allows us to continue doing it the way we are. He stated under current State law, however, the citizens must vote on it. Mr. Hackworth clarified that if this failed at the ballot then we would only be allowed to continue to tax the taxpayer’s share only to the extent that the portion represents wages or compensation for services performed. Mrs. Fersch clarified that if the income was not W2 wages, we would not be able to tax it. Mr. Wright moved to approve the draft resolution providing for the submission to the electors of the City of Pickerington, Ohio, of the question of continuation of the taxation of a shareholder’s distributive share of net profits of an S corporation; Mr. Wisniewski seconded the motion. Roll call was taken with Mr. Wisniewski, Mrs. Riggs, Mr. Hackworth, and Mr. Wright voting “Yea.” Motion passed, 4-0.
C. Finance Director’s Report:
(1) Health Department. Mrs. Fersch stated she had provided a written report to the Committee and she would be happy to answer any questions.
(2) CORMA. Mrs. Fersch stated a special meeting has been called for next week to address some issues.
(3) Investments. Mrs. Fersch stated she had provided a copy of the latest investments for the Committee.
4. PERSONNEL: No Report.
5. DEVELOPMENT DEPARTMENT: Ms Crotty stated she had provided a written report on all of her topics and she would answer any questions. Ms Crotty stated she would like to report that the Chair of the Chamber’s Economic Development Committee was Tim Swanson and he did a great job on that Committee. She stated he recently received a promotion in his job and was relocating to Texas, and he would be missed.
A. Development Director’s Report:
(1) Chamber of Commerce Report.
(2) Rt. 33 S.E. Regional 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. Ms Crotty stated they were considering circulating a new survey to get an update on some of the businesses needs.
6. LEGAL DEPARTMENT:
A. Monthly review of law director services. Mrs. Riggs ascertained the Committee had received a copy of Mr. Mapes’ monthly report and there were no questions.
7. CHAIRMAN:
A. Review and request for motion to approve draft ordinance authorizing the City Manager to enter into a contract with Barb Slaven for public information consulting services. Mrs. Riggs stated the Committee had received a draft contract to review. Mrs. Fersch clarified the contract was for a six month period and would not exceed $25,000. Mr. Hackworth clarified the $3,000 monthly retainer did not include the $200 per page fee. Mrs. Riggs stated once a new City Manager is hired, they will be able to determine if we need a part-time or full-time public information person. Mr. Wiseman stated that was correct, and it was possible the entire $25,000 would not be needed. Mrs. Riggs moved to approve and forward to Council; Mr. Wisniewski seconded the motion. Roll call was taken with Mr. Hackworth, Mr. Wright, Mrs. Riggs, and Mr. Wisniewski voting “Yea.” Motion passed, 4-0.
8. OTHER BUSINESS:
Mr. Wiseman stated with regard to
the State Infrastructure Bank (SIB) Loan, the application must be prepared for
the entire project, and he was requesting authorization to submit the
application. Mr. Wright moved to
authorize the City Manager to submit the application for the SIB Loan; Mr.
Wisniewski seconded the motion. Roll
call was taken with Mrs. Riggs, Mr. Wright, Mr. Wisniewski, and Mr. Hackworth
voting “Yea.” Motion passed,
4-0.
Mr. Wiseman stated he would like to let the Committee know that if we can time this correctly, the $2,000,000 for the northern terminus may be done through the SIB loan without having to do any other additional financing, bonds, notes, or anything. He stated the timing is critical and he was just trying to nail that down. Mrs. Riggs stated this would not affect our millage, and if we can do that she is all for it. Mr. Wiseman stated there are two options other than the loan; a potential use of the SIB loan, and the potential for using the Port Authority loan which also does not go against the 10 mill limit.
9. MOTIONS:
A. Motion for an 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. Wright moved to adjourn; Mr. Hackworth seconded the motion. Mr. Hackworth, Mr. Wisniewski, Mr. Wright, and Mrs. Riggs voted "Aye." Motion carried, 4-0. The Finance Committee adjourned at 8:20 P.M., May 20, 2004.
RESPECTFULLY SUBMITTED:
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