Finance Caucus - July 1st 2013
COMBINED MINUTES OF THE FINANCE CAUCUS AND SAFETY AND SERVICE MEETING
Monday, July 1, 2013 – 7:30 p. m.
Main Conference Room – Mayfield Village Civic Center
The Combined Finance Caucus and Safety and Service Committee meeting was held on Monday, July 1, 2013, in the Main Conference Room at the Mayfield Village Civic Center. Mr. Delguyd called the meeting to order at 7:30 p.m.
Present: Mr. Marrie, Mr. Delguyd and Mr. Marquardt
Also Present: Mrs. Cinco, Mr. Wynne, Chief Edelman, Mr. Metzung, Mr. Thomas, Interim Chief Carcioppolo, Ms. Wolgamuth and Mrs. Betsa
1. Senior Snow Removal – 2013-2014
Mr. Thomas stated, when I saw this on the agenda, I thought, this is for November/December, but we really have to start the process now as we have learned over the years we have to go out to bid and we get all that information and then we have to send out letters to our seniors. It is a good three to four month process. This is the appropriate time to put this on.
Mrs. Cinco stated, that’s why I had Mary Beth put it on Safety and Service agenda because it has to go through the process. Does anyone want any changes to this program? Mr. Marrie replied, go with it. Mr. Thomas stated, it worked out last year.
Mrs. Cinco asked, money-wise? Mr. Marrie replied, I think money-wise it was fine.
Mr. Delguyd asked, we will still have the same program, the opt-out will be the same as last year? Mr. Thomas replied, all the information would be the same. Mr. Marrie stated, we corrected it. It was going a little overboard for a while, but that was changed.
Mrs. Cinco asked, how did we do last year, were there any problems? Mr. Wynne replied, I am not aware of any problems.
Mr. Delguyd asked, any Service issues or complaints? Mr. Thomas replied, one or two. Mr. Wynne stated, there’s always a few.
Mr. Thomas stated, we are dealing with one now. Mr. Marrie asked, for snow? Mr. Thomas replied, damage. Mr. Marrie stated, if you told me with a Village this size that there wasn’t one complaint, I would say, you have a bag on your head.
Mr. Delguyd asked, is it the same area, one vendor? Mr. Thomas replied, I am not sure. There was a complaint about the steps. Ms. Wolgamuth replied, where the steps were broken? Mr. Metzung replied, Bill’s next door neighbor.
Mr. Delguyd asked, but it’s not the same contractor with all the complaints? Mr. Thomas replied, I don’t think so.
Ms. Wolgamuth replied, but the contractor is repairing it? Mr. Thomas replied, yes.
Mrs. Cinco asked, Bill, check out whether a senior is living there. Years ago I had to report one or two people. The parents owned the title to the house, but the kids were living there. The parents put in for the program.
Mr. Delguyd asked, we are okay with moving forward with the program? Mr. Marrie replied, move forward.
2. Property and Casualty Insurance
Mr. Wynne reported, we got our renewal a week and a half ago from Wichert on the property and casualty insurance, employee liability and safety forces coverage. Our annual premium is going to be about $75,000 which is about 5% higher than last year. But, if you recall, the insurance market has been soft for years. We were well into the six figures on our insurance costs about six or seven years ago. It has come down considerably over the years because of the market conditions.
Mr. Marrie asked, he has done a really good job on this hasn’t he? Mr. Wynne asked, Tom Wichert, yes, they really have.
Mr. Delguyd asked, what did we budget? Mr. Wynne replied, $80,000 or $90,000.
Mr. Delguyd asked, how often do we go to market? Mr. Wynne replied, they go to market every year. Wichert is our broker. They quote the common carriers.
Mr. Delguyd stated, I don’t have any questions. Mr. Marrie and Mr. Marquardt agreed.
3. TIRC Meeting
Mr. Wynne reported this is the Tax Incentive Review Committee, the Cuyahoga County Committee that reviews the TIFs every year. Our meeting is scheduled for Monday, July 22nd. I will be going down there with Ron Dinardo. Eric Jochum is also one of our representatives, but he cannot make it. We will be going down there to present to the Committee the status of all of our TIFs. They will get approved again for another year.
Mr. Delguyd asked, do you foresee any issues? Mr. Wynne replied, no.
Mr. Delguyd asked, it’s standard for every year? Mr. Wynne replied, yes.
Mr. Delguyd asked, what would cause a TIF not to get approved? Mr. Wynne replied, in the Development Agreement, if for some reason the company employer did not live up to some of the terms of the Development Agreement from the standpoint of number of employees or things like that, that would be an issue, but we don’t have those with any of ours. And also, non-payment. We did have an issue for a couple of years with the Hilton Garden Inn where they were a couple years behind on payment while they were going through changes in ownership. Once that ownership change took place, they caught up on everything. Everything is good.
4. 2014 Tax Budget
Mr. Wynne reported, every year by July 15th, Council needs to approve it and by July 20th, we need to submit to the County a really rough preliminary tax budget for the next fiscal year. This will be for 2014. It’s just a really really rough preliminary budget for them for two reasons, one for them to prepare the Amended Official Certificate of Resources for us to start the year, and also they want to make sure we have enough revenue sources to meet our debt obligations for the coming year. This doesn’t become our permanent budget with the County. We pass that in March. This is just their requirement to make sure that we have enough money to pay our debt. I gave you a copy. I put it together using the same assumptions we used this year. I didn’t really change a whole lot.
5. Various Purpose Improvement Note – due August 29, 2013
Mr. Wynne reported, our $2.4 million Note is due August 29th. Our plans are in the budget to pay down $500,000 against that and then sell Notes for $1.9 million at the same time.
Mr. Delguyd asked, we do that every year? Mr. Wynne replied, yes.
Mr. Delguyd asked, you don’t foresee any issues there? Mr. Wynne replied, no.
Mr. Delguyd asked, are those the Notes that have the one-time pay down? Mr. Wynne replied, no, those are the bonds.
Mr. Delguyd asked, any questions on that? There were none.
6. RITA Cost of Collections
Mr. Wynne reported, every month the money we collect from RITA, they keep a 3% retainer for the cost of their services. At the end of the year they do an analysis of what their actual costs of servicing were and refund overage or charge us for any shortage. This past year our actual cost of service was 1.08%. We actually got a refund of $282,000. We budgeted $200,000. Last year’s was $200,000.
Mr. Delguyd asked, do you budget for that refund every year? Mr. Wynne replied, yes. Their cost of doing business has been going down. I was at a Council of Governments’ meeting a couple of weeks ago at RITA. It used to be their cost was about 2%. Over time it has gone down to the level it is now, just about 1%.
Mr. Delguyd asked, is it software systems? Mr. Wynne replied, I think software systems, and just better technology.
Mr. Delguyd asked, this is totally unrelated to tax collections, but House Bill 5, municipal income tax uniform, have they put out a statement? Mr. Wynne replied, I don’t know that they have taken a position on it. They did initially because when it first started being discussed at the State level, they were looking at centralizing tax collection which impacted them directly. Once the State backed off of that, RITA backed off of it. They are helping the governments do calculations of what the tax impact will be to each city with the proposed changes. I don’t know that they have officially taken a position one way or the other on the Bill.
ANY OTHER MATTERS
Mr. Delguyd asked, any other matters? There were none.
There being no further business, the meeting adjourned at 7:41 p.m.
Mary E. Betsa, Clerk of Council