Finance Committee

Office of the Clerk of Council City of Gahanna 200 South Hamilton Road Gahanna, Ohio 43230 Meeting Minutes Finance Committee Michael Schnetzer, Chair, Karen J. Angelou, Ryan P. Jolley, Thomas R. Kneeland, Brian D. Larick, Jamie Leeseberg, Stephen A. Renner Kimberly McWilliams, CMC, Clerk of Council Monday, September 8, 2014 Council Committee Rooms Immediately Following Committee of the Whole Roll Call: Present 6 - Brian D. Larick, Jamie Leeseberg, Karen J. Angelou, Ryan P. Jolley, Stephen A. Renner, and Thomas R. Kneeland Absent 1 - Michael Schnetzer Additional Attendees: Mayor Stinchcomb, Chief Murphy, Matt Holdren, Sue Wadley, Tony Collins, Troy Euton, Shannon Sorrell, Mike Musser, Karl Wetherholt, Rob Priestas, Niel Jurist, Jennifer Teal, Joann Bury, Anthony Jones, Michael Blackford, Clerk McWilliams, Press. ITEM - From the Director of Planning & Development 2014-0135 Planning & Development Supporting Docs - Development & Parks Planning & Development Supporting Docs - Development & Parks 1. Economic Development Literature on Swimming Pools Larick called the meeting for Monday, September 8, 2014, to order; said Council would like to add the pool discussion to Finance Committee; would like to say thank you to Parks Administration for providing the detailed walk through where Council had the opportunity to see the pools drained, see the structures, equipment and facilities; helpful to all. Collins handed out a document; said have received questions from Council members and some directly from the public; we supplemented the pool document Frequently Asked Questions section with these City of Gahanna Page 1 Finance Committee Meeting Minutes September 8, 2014 additions; we will attach it to the document online; point out these are additional questions that have come up since we presented the document; there are a couple that don't speak directly to the pools but came up in those discussions so are included; open to any additional questions. Larick said we will need to determine a near term path; my focus is the near term path; the long term path is a different question; with what I know at this point, do not have the ability to establish a timeline; it is critical from a planning, membership, and citizen understanding standpoint that we make reasonable progress to the near term plan. Kneeland said we did have Steve Nye propose running operations; where do we stand with that. Collins said Nye is a contractor who has worked with us for a number of years; this year we gave him more of our programming work; he contacted me about a proposed operating strategy by contractors; what he sent is in Appendix C and is a summary proposal which resembles our option A; I have not gotten any additional detail. Leeseberg said so Nye does have an interest; in the past when we asked no one was interested. Collins said yes he would do contract services similar to what we are doing today which still leaves the City with costs. Larick said is that true for Cardinal and CPM. Collins said I have not talked to them but there is an interest. Kneeland said the main question for us from a Capital view is will what we have today survive for X number of years; if not, what is the cost to bring it to a standard that we can determine and estimate how long it is sustainable; operations is a separate piece of the discussion. Collins said I believe the operations piece is the primary discussion; the capital piece is the secondary discussion; we looked at this way because we are looking at financial sustainability for the whole City; if we were going to absorb the operational costs, then we would look at the capital costs; in this case we haven't addressed the capital costs because we don't believe financially that the operational numbers were there. Kneeland said what are we driving to; we have 2 issues to discuss and decide on; what is the decision point we are trying to get to so we can move forward and do something. Larick said I cannot speak for all of Council; for me after gathering information, it is a hard split of significant capital investment of any kind long term separate from a near term operational move forward; would like to get to a place of comfort where we can keep the pools as is and functional for a long enough span of time to make a true City of Gahanna Page 2 Finance Committee Meeting Minutes September 8, 2014 appropriate evaluation of what the long term path is; could end up being a major redevelopment or permanent closure; historically the belief is that the pools are good for this community; the financials aren't there; that is a different perspective than "it is not appropriate to have these pools"; we need time to answer that question; what we can accommodate in the near term is separate from finalizing any long term plan with participation of the community. Mayor said the sustainable operating model that we have for the City does not include operating the pools; if we choose to do that in 2015 we are talking about $100,000 operationally; it will be difficult to come up with that many cuts; are we willing to use some of the excess reserves to keep the pools open; over 5 years that is half a million dollars; may also have to put half a million dollars in repair in an old pool; it was asked when we went to voters for additional income tax; voters said no; there have been suggestions that we put something on the ballot for the pool; how much more money do you want to put into a 50 year old pool; we can continue to put on band aids; no one here wants to see them close, but there will have to be cuts made in other places or we will have to move cash from the reserves; any of that is possible but we do have to look at the bigger picture; my vision remains that we think about a new facility in the next 2 to 3 year period; I understand that Larick is worried about the short term. Larick said the short term allows us to make decisions. Mayor said but we have to decide how long we are going to kick that can down the road; deadline for that is appropriations; if we have to make major changes in the budget we need to know that; or if we are taking it out of the capital it will assist us in our next discussion; we are prepping the pools as if they will open next year. Collins said they are being winterized. Jolley said I fully support keeping the pools open for 1 more year while we come to some kind of consensus on a plan for the City; as for capital needs, until we have a clear direction how every piece fits into our 30 year plan, we are just picking random projects without priorities and without knowing the costs and benefits; they don't fit into an overarching framework of what we want to do; pools are a good example; we understand the value of the pools; doesn't mean the City should be paying for it; doesn't mean we shouldn't look at dedicated levies for pools and/or Parks; we have to settle these issues before we can pick out one of these scenarios; we have to have a framework going forward; time consuming process; I am not going to vote for any budget that doesn not include money for a Comprehensive Plan in 2015; needs to be done next year; so I support keeping the pools open for 1 more year; time to make the decision, put the framework in place, and get the community involved; we might take a hit operational for the pools; I do not support providing the full half million. City of Gahanna Page 3 Finance Committee Meeting Minutes September 8, 2014 Larick said it may be reasonable to make decisions in a year; the execution would take several years. Larick said our hard timeline is appropriations. Leeseberg said is it Council's wish they put that into the appropriations. Mayor said there is no money in the sustaining operating model for this. Teal said there are 2 ways it could go forward; to put it in the operational budget there would have to be offsetting cuts or increases in revenue; those are hard decisions to make; alternatively we have one time resources and decisions could be made to use those; we would have to do a good job communicating that those are not ongoing but one time resources that they are not renewable. ITEM - From the Director of Finance 1. Capital Needs Assessment Teal said Bury passed out the 2014 Capital needs assessment; staff has been getting this ready for the 2015 appropriations and the 5 year forecast; this is an assessment, not a plan or request; compares to a grocery list; identified what our community needs on our current path based on our professional expertise, best practices, feedback received through the year, and requests received through the year; staff assesses potential projects, considers alternatives, then shows their best guess and estimates for a 5 year profile for that project; some sheets are for funding programs that we have every year; most fall under operating capital; others are independent one off projects; a one time road, park or bridge; contains all of the costs for that one time project; use priority categories to differentiate between the ongoing operating program and one time projects; they are prioritize by categories 1,2 & 3, descriptions of which are on page 3; the document is split between general government which is the general fund, capital improvement fund, street and State highway funds; these are all things supported by the same pot; then we have proprietary funds in the back organized by priority category; water, sewer, water and sewer capital, and stormwater projects; these do not impact the general fund; many are both places; doing road work may also do water work; we have been trying to consolidate the sheets so there are not 3 sheets for every proprietary project but just one; we took a careful look this year, we have had good conversations about the operating model and core services and what we need to continue to City of Gahanna Page 4 Finance Committee Meeting Minutes September 8, 2014 do in the City; we did not just carry over last year's core services designation; also looked at the critical success factor button at the top of each sheet; we do not have a City plan, but we do have mission, vision, and critical success factors that this Council has validated; so we believe it is important to align what we do with these concepts; will see more of this alignment; new projects are listed on pages 4 and 5; there are the operating capital sustainable programs with life cycle concepts and equipment replacement; trying to roll that steady funding versus spikes concept; we then transition this to the actual execution, like what we put from the grocery list into our cart; we can work on timing to create a smooth funding stream; urge you to review the projects; note who the point of contact is; compile questions; between now and appropriations we are happy to answer any questions; we would like the details understood by all before we get there. Teal continued we have gotten this together electronically on the T Drive; it is huge so it takes a little bit of time to get it up on the web site; will let you know how to get it when posted; this is the 3rd year for the needs assessment; we had a call from another community who had looked at it and wants to emulate it; these sheets are a valuable year round reference; we work hard to make it a quality product; I can answer big picture questions; those questions for specific projects we will hold until everyone has looked at this. Larick said is this the master list; all known projects at this time. Teal said it is a pared down version; the universe of potential projects is larger than this book; these are the ones staff feels are important to maintain our quality of life or programming or to further a particular goal; staff sees these as reasonable and appropriate; not a wish list. Kneeland how do you want us to communicate questions on the sheets. Teal said quick questions can go to the project lead; something with bigger discussion or research required should be funneled through the Finance Office. Kneeland said will there be a time in Committee when we will walk through these. Teal said not every project; but those that are requested. Larick said any other time line other than appropriations. Teal said no hard time; budget season is November; so that is all that is left. Larick said what is the rank order or preference list for this master list. Teal said we don't have one yet; that will be the appropriations request. Mayor said there are 7 Council members; if all see a number one priority and it is listed 15, the sooner we know that the better. Larick said the limitation of dollars and resources drive the question of timing. City of Gahanna Page 5 Finance Committee Meeting Minutes September 8, 2014 Meeting Adjourned. Della Brandenberger, Reporting City of Gahanna Page 6