Finance Caucus - December 2nd 2013

Monday, December 2, 2013 – 7:30 p. m.
Main Conference Room – Mayfield Village Civic Center

The Finance Committee meeting was held on Monday, December 2, 2013, in the Main Conference Room at the Mayfield Village Civic Center.  Mr. Delguyd called the meeting to order at 7:30 p.m.

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Present: Mr. Delguyd, Mr. Marrie and Mr. Marquardt

Also Present: Mr. Wynne, Lieutenant Jablonski, Mr. Metzung, Mr. Thomas, Mr. Dinardo, and Mrs. Betsa

    1: Resolution to advance property taxes.

      Mr. Wynne reported, every year around this time we pass a Resolution and send it to the County to let them know that we want to receive advance distributions of our property tax money versus waiting until the end of the collection period. 

      Mr. Delguyd explained to Mr. Jerome who was present at the meeting, this is just a procedural thing. We can either wait and get it in chunks or we can get it all right now.  It doesn’t cost us anything to get it right now.  We take it now.

        2: Resolution requesting Cuyahoga County Fiscal Officer to Adjust the Amended Official Certificate of Estimated Resources for 2013

        Mr. Wynne reported, we send this to the County.  It shows the County our beginning Fund balance for the year and what our estimated revenues are for the year. The estimated revenues for the year are what the budget is, so any time we make an adjustment to the budget, we need to amend the Certificate.  Once the final budget is passed by Council at the Council meeting, we will need to make an amendment for the adjustments I showed on the budget sheets. This is mainly just for municipal income tax collections and also estate tax collections. 

          3: Advances and Transfers

            Mr. Delguyd stated, now would be the time to go over Ron’s memorandum.  There’s only a few minor changes.

            There is an additional million dollars going into the Sanitary Sewer Relief Fund. That is reflected on the surplus this year. We are taking $25,000 out of the Sanitary Sewer Relief Fund for engineering costs.  That is what number 13 is doing.  It would have been $1.4 if we would have gotten funding approved from DOPWIC.  So actually that Fund is going to go up significantly.

            Mr. Delguyd stated, what we are doing with number 10 is $1,067,417.00 is the advance that would be going from the General Fund to the Greenway Corridor Construction Fund.  The NOACA money is the 80% we always talk about being funded.  We are going to be getting that money in 2014.  Originally when we did the budget we thought we were going to get the money in 2013, so we budgeted and transferred the money. Basically it’s a lag over the end of the year, right?  When are we getting that money?

            Mr. Wynne replied, we will get it sometime during the first half of next year. As the project moves toward completion, there will be payments to Mr. Excavator for the work they are doing. We would then submit it to NOACA for reimbursement. We haven’t gotten any invoices from Mr. Excavator at this point to even submit for reimbursement.

            Mr. Marrie asked, so you submit it as you get the invoices?

            Mr. Wynne replied, yes, it’s a reimbursement grant. We get the invoices from Mr. Excavator. We pay them out of our Fund and we send it to NOACA for reimbursement.

            Mr. Delguyd asked, just out of curiosity, then, we are taking $1.067 million out of the General Fund to the Greenway Corridor Fund then it goes from the Greenway Corridor Fund to Mr. Excavator, right?

            Mr. Wynne replied, correct.

            Mr. Delguyd asked, where does the money from NOACA go then?

            Mr. Wynne replied, that’s why this is called an advance versus a transfer.  Transfers by law cannot be paid back.  Once you make a transfer, it is permanent.  We call this an advance. When the money comes in from NOACA, it will go in to the Greenway Corridor Fund because that is where the grant is designated for.  The Greenway Corridor Fund would then pay the General Fund back.  Next year there will be an advance on the Greenway Corridor Fund to the General Fund to repay 2013’s advance.  The reason we have to do this is once Council approves the bid by Mr. Excavator for the $1.3 million, we are saying that I have to encumber or reserve $1.3 million to pay for that contract. We don’t have that $1.3 million there, so we have to make sure the money is in the Fund to offset the accrual so that we are not in violation of the State Auditor having a negative fund balance in the Greenway Corridor Fund.

            Mr. Delguyd stated, 14-18 are TIF money.  We basically budget for how much we are going to get in TIF funds and then what we actually we get. We are generally fairly conservative on that, right?

            Mr. Wynne replied, yes.  We transfer the exact amount from the TIF Fund to the Debt Service Fund. 

            Mr. Delguyd asked, anything else?  There was no further discussion.

              4: Final appropriations for January 1, 2013 through December 31, 2013

                Mr. Wynne stated, I gave Council a full copy of the budget, highlighting items that have had to be changed, both in revenue and expenses with explanations of why they needed to be changed.  Most of the changes are as a result of the changes to the transfers.  There might be a change between now and the final approval at the meeting in a couple of weeks.  I really won’t know until I get November closed out and we get the purchase orders up to date but I don’t anticipate any.

                Mr. Marrie asked, is there anything major?

                Mr. Delguyd asked, do you know what it is going to be, what it is for?

                Mr. Wynne replied, no.

                  5: Temporary Appropriations for January 1, 2014 through March 31, 2014

                    Mr. Delguyd replied, we have to do this every year. The budget is not officially passed.  You have to tell the County that this is what we are going to spend the first three months. We pass an official budget by March 31st

                    Mr. Wynne stated, if we don’t pass the budget now for next year, we have to do a temporary and pass it by the expiration of the temporary which is March 31st or sooner.

                    Mr. Delguyd stated, this gives us time to work on it and move things around.

                    Mr. Jerome asked, so then you can go back and adjust those couple months if you were off?

                    Mr. Wynne replied, there’s really nothing to adjust.  It’s just Council passing a three month budget and then in March, Council passes the full budget.

                      6: MCIC – December 16, 2013 at 8:00 p.m.

                        Mr. Wynne replied, this is the Mayfield Community Improvement Corp. They have to meet once a year.  This is the annual meeting.

                        Mr. Delguyd asked, is this right before Council?

                        Mr. Wynne replied, yes.

                        Mr. Delguyd asked, why do we have to hold this?

                        Mr. Wynne replied, MCIC was formed in 1985 as a corporation.  It was formed to retain businesses in the Village.  That was the point of it at the time it was formed.  At various times, money was put in there intended to be offers of incentives to businesses that might be looking to leave.  It’s been inactive.

                        Mr. Delguyd asked, should we look at dissolving this corporation?  It’s literally a 5 minute annual meeting.

                        Mr. Wynne will check with the Law Director.

                          7: LifeForce Agreement

                            Mr. Wynne reported, LifeForce is the company that bills for our EMS services.  They bill non-residents only.  The way it was set up by Dave initially was that when we bill the non-resident, we take what the insurance company pays and that is it.  There’s no additional attempt to get additional funds out of the individual.  I just got involved in this in the past year since Dave retired. What I am finding is that, let’s say we charge $650.00 to the insurance company for an EMS run. The insurance company would say, they have only been approved for $550, but this individual on their medical plan has a deductible of $500, so we are only going to pay you $50 because the individual is responsible for the $500 deductible. We get the $50 and that’s where it stops.  When an individual has a deductible or a co-pay, the way the agreement was structured when this was first set up, there’s absolutely no attempt made to go after them.  The individual then gets the benefit of having their deductible satisfied at our expense and we make no attempt to try and collect it.  In order to do that, Council would have to approve an amendment to the LifeForce Agreement that would allow LifeForce to go ahead and bill the individual for the co-pay or deductible that is their responsibility and then try to collect it that way.  If they don’t collect it, then we would make a decision whether we want to send it to a collection agency or not.

                            Mr. Marrie replied, I think we should do it.

                            Mr. Delguyd asked, are you asking this for residents, non-residents or both?

                            Mr. Wynne replied, just non-residents.

                            Mr. Marquardt asked, what does it add up to in a year roughly?

                            Mr. Wynne replied, I had LifeForce pull the numbers.  For the past two years, it would have been $45,000 total.

                            Mr. Marrie stated, I think we should go after them.

                            Mr. Delguyd asked, what’s the downside?

                            Mr. Wynne replied, there is no downside. LifeForce sends the statement. They attempt to follow up on it and collect it.  If the individual refuses to pay, then we make a decision whether to send them to a collection agency or just walk away from it.  There is no downside to it.

                            Mr. Marquardt asked, does LifeForce charge us anything additional?

                            Mr. Wynne replied, no, they receive 7% of everything they collect.

                            Mr. Delguyd asked, is this when we are helping other cities out?

                            Mr. Wynne replied, no, if our EMS squad has to make a run to any location in the Village requiring transporting someone to the hospital.  Right now, the residents are not charged.

                            Mr. Delguyd stated, one of the things you might want to look into though is number one, can we do that and not charge the residents?   Essentially what we are doing is making a decision to write off the resident’s charges, technically.

                            Mr. Wynne replied, yes, we are viewing not charging the residents as a service provided for their tax dollars.

                            Mr. Delguyd stated, the other question is, do we have to have a standard policy in terms of making the decision of how they go to collections, how many times you should try to call them first, so it’s not like we are just arbitrarily sending them right to collections?

                            Mr. Marrie stated, if we agree to do this, Ron could go ahead and set that parameter up.

                            Mr. Delguyd agreed.

                            Mr. Wynne stated, that’s what our agreement with LifeForce is.  They are instructed to use the best efforts to try and collect what we tell them to collect. If they feel they have exhausted all efforts, they say, it’s up to you, you can write it off or take it over and send it to a collection agency.

                              8: ODOT Property Transfer to the Village

                                Mr. Metzung stated, this is the salt bin.  There’s no salt in the bin right now.  I am hoping that when we get our next load, that is where it is going to go.

                                Mr. Delguyd stated, we should ask any additional questions on this item to the Law Department during Caucus.

                                Mrs. Betsa stated, Joe Diemert will be at Caucus this evening and is planning on providing an update on this.

                                ANY OTHER MATTERS

                                With regard to EMS billing, Mr. Jerome had a resident tell him that he got picked up by a Willoughby Hills ambulance, because Mayfield Village was busy, I believe in Highland Heights.  The resident then got a bill from Willoughby Hills.  I understand Willoughby Hills has to collect the money, but I don’t see why a resident should have to pay for it because Mayfield Village was busy.  I don’t know the process for that.  It’s not his fault Mayfield Village was not able to pick him up.

                                Mr. Wynne stated, that’s a good question. I don’t know. I will have to check into this.

                                Mr. Delguyd asked, another question, do we have reciprocation billing with Highland Heights if we are helping them out?

                                Mr. Metzung asked, do we send a bill if we went on mutual aid to another community for someone in their community?

                                Mr. Wynne replied, those are good questions.  I will have to do some research into this.

                                Mr. Delguyd asked if there were any other matters. There were none.

                                There being no further business, the meeting adjourned at 7:50 p.m.

                                Respectfully submitted,

                                Mary E. Betsa,
                                Clerk of Council