CITY OF PICKERINGTON

FINANCE COMMITTEE OF COUNCIL

CITY HALL, 100 LOCKVILLE ROAD

THURSDAY, JUNE 17, 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, Megan Browning, Barbara Geiss, and others.

2. APPROVAL OF MINUTES OF MAY 20, 2004, Regular Meeting. Mr. Hackworth moved to approve; Mr. Wright seconded the motion. Roll call was taken with Mr. Hackworth, Mr. Wright, Mr. Wisniewski, and Mrs. Riggs voting “Yea.” Motion passed, 4-0.

3. FINANCE DIRECTOR:

A. Presentation on the Ohio Municipal Bond Pool Program. Mrs. Fersch stated Ms Browning of Seasongood and Mayer was present to brief the Committee on the Ohio Municipal Bond Pool Program. Mrs. Fersch stated this would be our alternative for the borrowing of the $2,000,000 for the northern terminus of Diley Road. Ms Browning stated she understood this was a project that required more of a gap financing than a long term financing. Ms Browning stated the Pool offers variable and fixed rate loans, and the variable rate seemed like the perfect opportunity because you can determine the final return, and you can prepay at any time without penalty. She stated while you think that you have a pretty good idea that the SIB loan will be coming in, these are the kinds of things that can either come sooner than expected or can be delayed. She stated you normally do not want to borrow money for longer than is needed, and this will allow you to pay it off at any time with no penalty. Ms Browning stated the City has been approved for the Pool with the pledge of the SIB loan with an additional income tax pledge. She stated it is a matter of legislation being passed and moving forward. Ms Browning stated the paperwork would be provided to the City’s bond counsel and he would provide all of the legislation required by Council. Ms Browning stated once she has approval, there is an add on that is based on the credit rating that is added on to the interest rate and she would discuss that with Mrs. Fersch. She stated once that add on is determined, it does not change. She stated the only reason the rate will change is the weekly reset that is based on what is happening in the bond market. Ms Browning stated it would be her recommendation to set the final duration at two years because you never know if there will be delays or whatever, and you can still pay it off early. She stated that would allow a little more latitude if things don’t progress as you think it will right now. Mrs. Fersch clarified if more money is needed than initially borrowed, we can ask for additional funds. Mr. Hackworth clarified by using this vehicle the borrowing would not go against the ten mill certificate. Mr. Wiseman clarified this borrowing can be used for anything, but it cannot exceed the useful life of the asset. Mrs. Riggs stated she felt this was a much better solution than the one we had prior.

Ms Browning stated the City is out in the market more than others in terms of short term note issues, and the City does not have a credit rating. She stated the City has become more sophisticated, the tax base has grown, and she felt it would be a good idea to consider getting a credit rating. Mrs. Fersch stated that we have not done that because of the expense, but Ms Browning does have another idea for this. Ms Browning stated Ohio investors really like a Moody’s rating. She stated there is a program called Preferred Pricing where you can get the Moody’s rating at a lower cost and she would be happy to work with Mrs. Fersch on this if the City would like to look into it. Mrs. Riggs stated she felt it would be a good idea and asked Mrs. Fersch to work with Ms Browning on this.

Ms Browning stated if this is the method the City would like to use, she will work with the bond counsel and the legislation can be presented at the next Council meeting on July 6^th. The committee concurred they would like to go with this program.

Mrs. Riggs stated if there were no objections, she would move to Item 8.A. She stated Barbara Geiss of the School District is present this evening regarding the request to waive the City’s fees that would be due by the Pickerington Local School District on the repair/replacement of the roof on Ridgeview Junior High School. Mr. Wright moved to approve; Mrs. Riggs seconded the motion. Mr. Wright stated historically we have always done this. Roll call was taken with Mr. Hackworth abstaining, and Mr. Wisniewski, Mrs. Riggs, and Mr. Wright voting “Yea.” Motion passed, 3-0.

B. 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 in their packets. She stated in the General Fund she was requesting an increase of $691 for election expenses, an increase of $22,000 for the City Manager’s Office, and an increase of $20,000 for the Finance Department for income tax refunds. Mrs. Riggs clarified the election expense is estimated in the budget. Mrs. Fersch stated the County takes the number of polling places in the City and divides the cost among the entities that have issues, such as state issues, school issues, etc., and she needs an additional $691 over what was estimated. Mr. Wiseman stated he was also requesting Mrs. Fersch appropriate $3,000 for the Chamber of Commerce. He stated they are starting a new program where they are going to set up radio advertising and this will be unique for the State as it hasn’t been done before. Mr. Wiseman stated they heard the jingle today at the Chamber luncheon and it mentions Pickerington all the way through it with individual businesses advertising in it. Mrs. Riggs inquired where it would be used, and Mr. Wiseman stated it would be played in this area but he did not know the station or times it would be on the air. Mr. Wiseman stated the City would be donating the $3,000 to start the program. Mr. Wright inquired what would happen if businesses did not donate for this program. Mrs. Riggs stated she felt more information would be required before they would approve the appropriation. Mr. Wiseman stated we have $10,000 budgeted for the OPVBA and they will only need $7,000 this year so the $3,000 could be transferred to this program. Mr. Hackworth stated he agreed with Mrs. Riggs and he would like more information on this program. Mr. Wright clarified the Chamber would be administering the program, however, an advertising agency created the jingle, etc. Mr. Hackworth clarified the purpose of the campaign would be to bring tourists to Pickerington. Mrs. Riggs stated she would like to know how many times the ad would be played, what stations it would be on, what times it would be aired, etc. Mr. Wright stated advertising campaigns are expensive and he would like to know the total they need to raise before it happens as well. Mr. Wiseman stated he would get more information and bring it back at the next Finance Committee. Mr. Hackworth moved to approve the appropriations as presented on the draft ordinance; 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.

C. Review and request for motion to approve draft ordinance to authorize the City Manager to enter into a contract with Lion’s Head Ventures, Inc. for the sale of the city-owned real property known as Lot No. 1, Windmiller Square Commercial Subdivision. Mrs. Riggs clarified we received two bids for the property and this was the best one. Mr. Hackworth ascertained that once we accept the bid, they are obligated to purchase the property. Mr. Wright moved to approve the draft ordinance and forward to Council; 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.

D. 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. She stated there will be a Hazardous Waste Collection on August 21^st between 8:00 A.M. and 2:00 P.M. at the Lancaster Fairgrounds. Mrs. Fersch stated further the State was trying to standardize the issuance of vital statistic records. She stated when this is in place you will not have to go to the county where the birth or death occurred, but can obtain it at any county office.

(2) CORMA. Mrs. Fersch stated the group is going to solicit quotes for the stop loss insurance renewal. She stated because of the timing with the insurance industry, we will probably not receive a quote until mid or late August, and October 1^st is the deadline for renewal. Mrs. Fersch stated because of this, we will probably have to pass the legislation at one meeting. Mrs. Fersch further stated Gahanna has requested to become a member of the pool and that will be reviewed.

(3) Investments. Mrs. Fersch stated she did one investment this month and she will be requesting an advance on our real estate taxes so she will be doing more investments.

E. State Infrastructure Bank (SIB) Loan Application – Update. Mrs. Fersch stated she put together preliminary figures showing repayment from income tax, gasoline tax, and storm water. She stated she had just received information from Stilson that we can use some water money as well. Mr. Wiseman stated we are at the point where the SIB people would like to talk to ODOT about the project and when we decide what the actual project will be, they will continue with the process.

Mrs. Fersch stated she had distributed copies of our annual report and it is being audited by the State Auditors. She stated there will be some adjustments to the report.

Mrs. Fersch further stated when the City purchases property we do not get it exempted right away for real estate tax purposes. She stated when we get the first tax bill, Mr. Mapes prepares exemption forms that are filed with the County Auditor and they then file them with the State. She stated the state has reassigned some of their Tax Hearing Commissioners and there are 6,000 cases for two people to review. Mrs. Fersch stated it will take approximately 18 months to get our exemption. Mrs. Fersch stated we do have the police department property and the parking lot property in the old downtown that are affected by this, and it will also affect any TIF issues that we refile.

4. PERSONNEL:

A. Annual review of Workers’ Compensation Group Rating and request for motion to authorize payment of fee. Mrs. Fersch stated Mrs. Sheikh had provided a memo showing a slight increase in the fee from Gates McDonald. She has requested quotes from three other groups, but has not received any information as yet. Mrs. Fersch stated our enrollment deadline is July 2^nd, and Mrs. Sheikh would like authorization to re-enroll with Gates McDonald unless a lesser quote is received by July 1^st. Mr. Wright moved to authorize Mrs. Sheikh re-enroll with Gates McDonald unless a lesser quote is received prior to the deadline date Mr. Hackworth seconded the motion. Roll call was taken with Mrs. Riggs, Mr. Wisniewski, Mr. Wright, and Mr. Hackworth voting “Yea.” Motion passed, 4-0.

B. Review and request for motion to approve draft amended and restated resolutions clarifying “pick-up” and pre-tax contributions to the Ohio Police and Fire Pension Fund (Administrative and FOP employees). Mrs. Riggs stated this was more or less a housekeeping item as the Ohio Police and Fire Pension Fund had requested separate resolutions for FOP employees and administrative employees. She stated Council had passed a combined resolution earlier this year and these two resolutions would just be replacing that one. Mr. Wright moved to approve the draft resolutions and forward to Council; Mrs. Riggs seconded the motion. Roll call was taken with Mr. Hackworth, Mrs. Riggs, Mr. Wright, and Mr. Wisniewski voting “Yea.” Motion passed, 4-0.

5. DEVELOPMENT DEPARTMENT: Ms Crotty stated she had provided a written report on all of her topics and she would answer any questions. She stated the Township will be holding a public meeting to discuss Home Rule on June 24^th from 7:00 P.M. - 9:00 P.M. at Pickerington Central High School.

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 she will be meeting with the Economic Development Committee of the Chamber who has been helping update the data base, and they will be re-issuing the survey.

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: Mrs. Riggs stated she had nothing to bring forward.

8. OTHER BUSINESS:

A. Review and request for motion to approve draft ordinance to authorize the City Manager to waive the City’s fees, which would be due by the Pickerington Local School District, for the repair/replacement of the roof on the Ridgeview Junior High School. Mrs. Riggs stated this had been dealt with earlier in the meeting.

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. Wisniewski moved to adjourn; Mr. Wright seconded the motion. Mr. Hackworth, Mr. Wisniewski, Mr. Wright, and Mrs. Riggs voted "Aye." Motion carried, 4-0. The Finance Committee adjourned at 8:45 P.M., June 17, 2004.

RESPECTFULLY SUBMITTED:

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Lynda D. Yartin, Municipal Clerk