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HomeMy WebLinkAbout09/08/1986 , RECORD OF PROCEEDINGS 227 Minutes of Special Meeting - Dublin Village Council Aleeting national National Graphics Corp., Cols., O. Form No. 1097 ~ g~P-!J~ Held September 8, 1986 19 _...----- ------------. ._------- ------------------------ ---_._--------_._._----_._~--~_._._---~._-~- Mayor Close called the meeting to order at 8:10 P.M. Mr. Thornton led the Pledge of Allegiance. Members of Council present were: Mr. Amorose, Mayor Close, Mr. Jankowski, Ms. Maurer, Mr. Rozanski, Mr. Sutphen, and Mr. Thornton. Mr. Sheldon, Village Manager, and Mr. Bowman and Ms. Prushing of the Village Staff were also present. The purpose of the Special Meeting was to discuss the proposed 1986 Capital Improvements. The basis for beginning the discussion was a memorandum from Mr. J. Jankowski, Jr. titled "Financial Analyses Conducted During the Week of July 21, 1986". Mr. Jankowski noted that recently the Village Finance Director, Nan Prushing, with the assistance of a staff person from the accounting firm of Ernst and Whinney, Mr. Tim Lehman, prepared some financial projections, the purposes which are listed as follows: 1. Assessment of the need for further revenue increases. 2. Development of a computer system for facilitating further financial projections. 3. Analysis of the impact of future capital improvement projects on debt limitations. The following studies were conducted and summarized by Ms. Prushing: 1. Study A The basic study upon which the rest of the studies were based, the remainder being variables of Study A. 1% income tax rate with 10% growth rate (compounded). Used a 15 million dollar assessment valuation; that being 35% of the market value. The above being conservative estimates. Briefly described the items on the spread sheet, listing projects in the 5 year Capital Improvement Program. Half a million or more in projects shown as Notes; a million or more projects shown as Bonds. The millage factor is also computed in. Study A shows, without the West Branch Sewer, a deficit in 1990 or 1991. i i I, I' r I r ... 2. Study~ 20% increase on the income tax base, which brings everything into a positive balance but there would be problems in terms of the millage factor. The slowdown in the growth rate would probably be caused most directly by a "cooling off" of the economy rather than any other single factor, that being cyclical. Need to identify some alternate methods of financing or have some projects as voted issues. Study B does not include the West Branch Sewer, but shows the same expenditures as Study A. 3. Study I 1.5% income tax and the eight million dollar sewer project with 10% growth rate increase. The millage is not there. IT Afinutes of Held RECORD OF PROCEEDINGS 229 Special Council Meeting ~~~ 1\J eeting National Graphics Corp.. Cols., O. Form No. 1097 ~ September 8, 1986 ! ~ I 19 Page Two The Village can only assess an individual property owner 10 mills without there being a vote; the Village currently has 6 mills committed. Confusing to the voters on a voted levy is that they would be authorizing an increase in their property tax without it actually costing them any additional money. A possibility could be to group the park projects, and get a voted levy for all such projects. It was mentioned by Mayor Close that he would be hopeful that the Village would not encumber itself with the unvoted millage, doing projects that are nice but not necessary, in the event that the Village would have to go back to the voters for an 8 million dollar sewer that absolutely has to be there. Mr. Jankowski also commented on same saying that the total amount for parks has a small effect on the inside millage. He also said that if the Village is going to put something on the ballot and not increase taxes that the Village might as well make it something attractive like parks, swimming pool, etc. so that the Village can use that as voted millage and then have a larger spread for projects that they absolutely have to have. Mayor Close went on to say that if that type of project were voted down the Village would still be able to stay in the business of municipal government. Ms. Maurer commented that persons were thinking only in terms of income tax and not considering the possibility of tapping other sources. She suggested the possibility of a hotel/motel tax, perhaps parking meters, etc. Ms. Prushing said that she did not feel that such a tax would be as significant as a property tax or income tax but that it could be an additional source of income. Mr. Thornton noted that historically and traditionally the income tax is for the minicipality; the property tax for the schools. He also said that he felt that the hotel/motel tax is very discriminatory. Mr. Jankowski said that he felt that the Village should explore other possibilities/alternatives of income that might be available. Mayor Close noted that the 20% growth rate is dependent upon the economy continuing to expand, and that the Village will eventually reach a point where growth will stop. 4. Study C The assumption that if there is a 20% increase of the income tax base then there would be expenditures that go along with that that would be higher. Should you double the income tax then you would also have to double or use some other higher growth in terms of expenditures. You have doubled the tax base growth but have also doubled the expenditure base. That would also bring Study C into negative figures. 5. Study D 1% income tax rate. Increase the property valuation to 25 million in assessed valuation. . . RECORD OF PROCEEDINGS 233 1\1 inutes of Special Council Meeting ~~~ Meeting National Graphics Corp., Cols., O. Form No. 1097 ~ Held September 8, 1986 19 I ----- ~= I i , Page Three The major effect of implementation of this plan would be on the millate limitations. 6. Study E Using Study A basic assumptions, but including the West Branch Sewer at an eight million dollar cost. In 1989 there would be a deficit of a $1,521,000.00. Mr. Jankowski said that he felt that what Study E shows is that if the Village uses a conservative growth rate of about 10% and have to build an eight million dollar sewer with a 1% income tax, the Village will be in trouble. All of the Capital Improvement Projects were included. Mr. Amorose inquired about the possibility of increasing the sewer taxes. Mayor Close said that would be one of the alternatives that could be considered and indicated that he had talked with some developers about the possibility of their contributing something to the cost of the sewers, the possibility of some type of payback agreement. Ms. Prushing indicated that there is a surcharge on water at present, which amounts to about $20,000.00 per quarter. Mayor Close mentioned that with a user assessment on the sewer that, in effect, the Village would be, in effect, increasing the property tax, creating the same effect as if increasing the millage. Mr. Thornton said that the way that it was done when the Dublin sewer was originally put in was that if you owned property you were found to have so many "use units" and paid a tax on that basis. Ms. Prushing said that assessments can be done in three ways - front footage, acreage, or by benefit. 7. Study F 1~% increase in income tax. 15 million dollar property valuation (35% of market value) Cost of the sewer being 4~ million 8. Study G 1~% income tax (1987) 25 million dollar property valuation 9. Study H 2% income tax increase in 1988 and the eight million dollar sewer iJroject Mr. Bowman suggested that an intense study needs to be done on the entire roadway system for the entire Village and work needs to be begun quickly. It was noted that the restrooms and concession stand at Avery Park should be under Parks and Recreation rather than roadways. It was suggested that a discussion with regard to the traffic study be done at the end of a regularly scheduled Council meeting. No definite date was established for said discussion. With regard to the sewer it was noted that some funds would probably need to be available in 1987 with the bulk of the monies required in 1988. Study E showed a $300,000.00 design cost in 1987 as cash, and then beginning construction in 1988. RECORD OF PROCEEDINGS 237 Special Council Meeting national graoo~ AJ eeting Minutes of National Graphics Corp., Cols., O. Form No. 1097 ~ Held September 8, 1986 19 ~ I I I Page Four .... "" Mr. Thornton thanked Ms. Prushing and Mr. Jankowski for a very factual, useful and well done presentation. It was suggested that each Council member review the report and report their thoughts, recommendations, especially regarding funding, to Ms. Prushing. Mayor Close asked Ms. Prushing to "put together another recap of the Village's debt" for a meeting in October. Mr. Thornton also suggested that the possibility of City status be considered. Mayor Close reported on the formation of a committee in Dublin called Citizens for Better Planning. He noted that their thought is that the Village should shut off development until the schools catch up, declaring a moratorium on building permits. He said that their representatives would be appearing at the next Council meeting. Mayor Close said that a letter had been received from Perry Township regarding the road situation. He said that they will be meeting with Mr. Sheldon, Mr. Johnson, Mr. Rozanski, and Mr. Amorose. Mayor Close suggested that the possibility of an audit by a Big Eight accounting firm (at a reasonable cost) might provide more useful information to the Village. Ms. Prushing commented that it would have to be bid out. l>; i i I I i' i I I. i' I! ]' ;f/!fk The meeting was adjourned by Mayor Close at 9:31 P.M. Mayor - Presiding Officer J~ ~.14d~ Clerk of Cou cil ~ '"