Finance - December 16th 2013

MINUTES OF THE FINANCE COMMITTEE MEETING
Monday, December 16, 2013 – 7:30 p. m.
Main Conference Room – Mayfield Village Civic Center

The Finance Committee meeting was held on Monday, December 16, 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, Mr. Marquardt, and Dr. Parker

Also Present: Mrs. Mills, Mr. Wynne, Chief Edelman, Mr. Metzung, Interim Chief Carcioppolo, Mr. Marrelli, Mrs. Wolgamuth, Mr. Dinardo, Mr. Thomas, and Mrs. Betsa

    1: Discussion of a motion to authorize expenditure in the amount of $8,030.00 to Mayfield City Schools for facility rental.

      Mr. Thomas prepared a memo for packets last Friday.  Hopefully that explained the request for expenditure. What really is great about it is that we were paying a higher fee.  It was $38.00 during the week and almost $60.00 on the weekend for custodial overtime.  Now, we pay them $20.00 an hour and it goes back to our enterprise, the Wildcat Sport and Fitness, to be used for programs or facility upgrades.  This is all of the monies that we have spent for programs we held in the summertime through this December.

      Mr. Delguyd asked, when did we take over?

      Mr. Thomas replied, in October of 2012.  The MBA on top has already been paid for.  The total starts from $2,230. The total is $8,030.

      The Committee recommended Item #1 for approval.

        2: Discussion of a motion to authorize expenditure in the amount of $5,500.00 to Ohio Fire Chiefs’ Association for Fire Chief Assessment on November 15, 2013.

          Mr. Delguyd asked, any comments on this item?  Is this covering both tests we administered or is this just the second one?

          Mr. Wynne replied, this is just for the second one.

          Mr. Delguyd asked, we paid a previous one? 

          Mr. Wynne replied, the first one was around $3,900. The cost of the test depends on how many individuals are taking it.

          The Committee recommended Item #2 for approval.

            3: Discussion of a motion to acknowledge receipt of financial reports for November, 2013 and to approve of same as submitted.

              The Committee recommended Item #3 for approval.

              Chairman Delguyd stated, Agenda Items 4-21 were discussed in great detail in Caucus.  Does anyone have any questions? There were none.

              4: Discussion of a motion to authorize transfer from the General Fund to the Street Construction Maintenance & Repair Fund to cover the 2013 road program the sum of One Million One Hundred Ten Thousand Dollars ($1,110,000).

              5: Discussion of a motion to authorize transfer from the General Fund to the Community Room Fund to cover the cost of future renovations the amount of Three Hundred Thousand Dollars ($300,000).

              6: Discussion of a motion to authorize transfer from the General Fund to the Civic Center Fund to cover the cost of tower chimney waterproofing, bathroom remodeling, main conference room TV and chairs and general facility upkeep the sum of Fifty Thousand Dollars ($50,000). 

              7: Discussion of a motion to authorize transfer from the General Fund to the Sanitary Sewer Relief Fund for future sewer conversion projects the sum of One Million Five Hundred Thousand Dollars ($1,500,000). 

              8: Discussion of a motion to authorize transfer from the General Fund to the Infrastructure Improvement Fund to cover the cost of various D&I projects the sum of Thirty Thousand Dollars ($30,000).

              9: Discussion of a motion to authorize transfer from the General Fund to the General Bond Retirement Fund to cover current and future debt payments not funded by TIF, Special Assessment and Property Tax Revenue the sum of Eight Hundred Thousand Dollars ($800,000).

              10:  Discussion of a motion to authorize transfer from the General Fund to the Parkview Ballfield Funds to cover the cost of the soccer field restrooms the sum of Three Hundred Fifty Thousand Dollars ($350,000). 

              11: Discussion of a motion to authorize transfer from the General Fund to the Green Corridor Construction Fund to cover future costs associated with the trail system the sum of One Hundred Seventy-Five Thousand Dollars ($175,000). 

              12: Discussion of a motion to authorize transfer from the General Fund to the Parkview Pool Improvement Fund to cover cost of sandblasting and painting the pool and replacement of the playground flooring at the park the sum of Eighty-One Thousand Four Hundred Forty-Four Dollars ($81,444).

              13: Discussion of a motion to authorize advance from the General Fund to the Green Corridor Construction Fund to cover the construction costs of the trail system the sum of One Million Sixty Seven Thousand Four Hundred Seventeen Dollars and Fifty-Eight Cents ($1,067,417.58) (These funds will be reimbursed to us by NOACA in 2014).

              14: Discussion of a motion to authorize transfer from the Police Pension Fund to the General Fund to offset pension costs the sum of Fifty One Thousand Dollars ($51,000). 

              15: Discussion of a motion to authorize transfer from the Police Operating Fund to the General Fund to offset operating expenses the sum of Sixty Thousand Dollars ($60,000). 

              16: Discussion of a motion to authorize transfer from the Sanitary Sewer Relief Fund to the Sanitary Sewer Conversion Fund to cover the costs of preliminary engineering services the sum of Twenty-Five Thousand Dollars ($25,000).

              17: Discussion of a motion to authorize transfer from the North Commons T.I.F. Fund to the General Bond Retirement  Fund to offset debt payments the sum of  Eight Hundred Thirteen Thousand Five Hundred Fifty-Three Dollars and Eight Cents ($813,553.08). 

              18: Discussion of a motion to authorize transfer from the Governor’s Village T.I.F. Fund to the General Bond Retirement Fund to offset debt payments the sum of Forty Three Thousand Four Hundred Sixty Dollars and Six Cents ($43,460.06). 

              19: Discussion of a motion to authorize transfer from the Heinen’s T.I.F. Fund to the General Bond Retirement Fund to offset debt payments the sum of Fifteen Thousand Two Hundred Eighty Six Dollars ($15,286.00). 

              20: Discussion of a motion to authorize transfer from the Skoda, Minotti T.I.F. Fund to the General Bond Retirement Fund to offset debt payments the sum of Thirteen Thousand Two Hundred Thirty-Four Dollars and Forty Cents ($13,234.40). 

              21: Discussion of a motion to authorize transfer from the OMNI Hotel TIF Fund to the General Bond Retirement Fund to offset debt payments the sum of Sixty Nine Thousand One Hundred Five Dollars and Twenty-Three Cents ($69,105.23).   

              The Committee recommended Items #4- #21 for approval.

              22: Discussion of the First Reading of Ordinance No. 2013-19, entitled, “An ordinance appropriating funds for current expenses and expenditures of Mayfield Village, Ohio for the period from January 1, 2013 and ending December 31, 2013 and declaring an emergency.”  Introduced by Mayor Rinker and Council as a Whole.

              Mr. Wynne stated, I provided everyone with a detailed budget a couple of weeks ago.  There have been no changes to that.

              The Committee recommended Item #22 for approval.

              23: Discussion of the First Reading of Ordinance No. 2013-20, entitled, “An ordinance appropriating funds for current expenses and expenditures of Mayfield Village, Ohio for the period from January 1, 2014 and ending March 31, 2014 and declaring an emergency.”  Introduced by Mayor Rinker and Council as a Whole.

              Mr. Delguyd asked, this is just a short-term budget?

              Mr. Wynne replied, yes.

              The Committee recommended Item #23 for approval.

              24: Discussion of the First Reading of Ordinance No. 2013-21, entitled, “An emergency ordinance accepting the transfer and donation of certain real estate located at 734 SOM Center Road from the Ohio Department of Transportation.” Introduced by Mayor Rinker and Council as a Whole.

              Mr. Delguyd asked, this is the salt dome?

              Mr. Metzung replied, correct.

              Mr. Delguyd asked, the building has been checked out?

              Mr. Metzung replied, we toured the property on Thursday.  We saw nothing glaring.  The dome will need some maintenance.  It needs some shingling to be done.

              Mr. Delguyd asked, you don’t need to rebuild it?

              Mr. Metzung replied, no, it’s probably around a $300,000-400,000 structure.

              Mr. Marrie stated, Joe Diemert said we are not tied to any environmental thing also.

              Mr. Delguyd added, he was going to look up any deed restrictions.

              Mr. Marrie replied, he thought we were not tied to anything, but I don’t know if that was final.

              Mr. Metzung replied, the only deed restriction is we have to use it for public use or for public purpose.

              Mr. Delguyd asked, what does that mean? 

              Mr. Metzung replied, at the end of the day if you wanted to tear it all down and make a public park, it would be okay.

              Dr. Parker asked, how much of our salt percentagewise would fit in there?

              Mr. Metzung replied, almost a year’s worth.

              Dr. Parker asked, so it’s not like we have plenty of extra space for our other stuff?

              Mr. Metzung no, but what happens is it frees up space in what was my old salt dome to go in there.  Plus there’s buildings at that location that we may use for storage.

              Mr. Delguyd asked, there’s other buildings in addition to the big salt dome for plows and winter-type things?

              Mr. Metzung replied, correct.

              Dr. Parker stated, a couple of years ago, when we had a mild winter, you had so much extra salt. This is good because we can keep it.

              Mr. Metzung replied, correct.  We have a 500 ton bin. We go through a couple hundred.  If you have a back to back storm, you can go through 300 tons of salt in a hurry and when that starts piling up, you can’t get deliveries. This takes the nervousness away.

              Mr. Delguyd asked, so the goal is to buy it all at once and not be worried next year?

              Mr. Metzung replied, I will have a full bin at the beginning of the year.

              Mr. Delguyd asked, do we need this passed tonight?  I am assuming they want to get it off their books for 2013.

              Mrs. Wolgamuth replied, the Deed is ready to be recorded. At this point, it’s up to when we want to get on the property.

              Mr. Marrie replied, okay, let’s pass it tonight.

              Mr. Metzung replied, I am waiting on my deliveries to figure out where it’s going.

              Mr. Delguyd replied, okay, we will pass it tonight so we have access to it and can put salt in it.  I am assuming we have salt now?

              Mr. Metzung replied, yes.

              The Committee recommended Item #24 for approval.

              25: Discussion of Resolution No. 2013-16, entitled, “A resolution requesting the Cuyahoga County Treasurer to advance from the proceeds of tax levies for the collection year 2014.”  Introduced by Mayor Rinker and Council as a Whole.

              The Committee recommended Item #25 for approval.

              26:  Discussion of Resolution No. 2013-17, entitled, “A resolution requesting the Cuyahoga County Fiscal Officer to adjust the amended official certificate of estimated resources for 2013.”  Introduced by Mayor Rinker and Council as a Whole.

              The Committee recommended Item #26 for approval.

              ANY OTHER MATTERS

              Mr. Wynne reported, municipal tax uniformity has been going on for a while at the State level.  They are trying to make it more uniform and more business friendly so when businesses complete tax returns, it will be one tax return.  The same goes for individuals, one tax return for all municipalities versus having to fill out a tax return for each municipality.  It has come from what looked like the State was going to take over municipal income tax collections to what you see in the memo provided in packets from RITA which outlined changes in the law to make it more business friendly. The impact to us is nominal.  It’s hard to measure it. RITA right now is going through calculations for each one of their member communities to figure out what the dollar amount impact would be.  The biggest item on there is the carry-forward. That should have no impact to us. The other one is the supplemental employee retirement packages for the executives.  Right now they are included in taxable income. They were trying to exclude those from the calculation. That particular piece would have a dramatic impact on a lot of cities.

              Mr. Delguyd asked, wouldn’t that be the same as taking, the Cities take your Medicare wages, as your gross wages?

              Mr. Wynne replied, correct.

              Mr. Delguyd asked, by including that, isn’t it the same thing?   Essentially my 401K doesn’t get included in my Federal taxes but it does in my city taxes.  They typically should be included if you are including my 401K.

              Mr. Wynne replied, which is the way it is handled now.  The movement is to try to have them excluded.

              Mr. Delguyd asked, are they trying to exclude everything including 401Ks?

              Mr. Wynne replied, no just SERPs.  Just trying to be taxpayer friendly to the high income individuals.

              Mr. Delguyd asked, have they tabled the discussion about uniform tax rates? 

              Mr. Wynne replied, that was never a discussion.

              Mr. Delguyd asked, what about going to one form?

              Mr. Wynne replied, there are going to be different tax rates because each municipality is going to have their own rate. One form from the standpoint that all of the taxable income items, inclusions and exclusions will be the same no matter what municipality you are in.

              Mr. Delguyd asked, right now RITA and CCA have different forms. Some cities have their own forms.  Is the State going to issue a physical form that visually looks the same?

              Mr. Wynne replied, that I am not sure of.  I don’t believe so.  The income expense portion for each one of the forms will be the same.  If a city has their own tax department, they still can submit their own forms, but the body of the form will be the same throughout.

              Mr. Delguyd asked, are there any other matters? There were none.

              There being no further business, the meeting adjourned at 7:40 p.m.

              Respectfully submitted,

              Mary E. Betsa,
              Clerk of Council