Finance Committee

200 South Hamilton Road City of Gahanna Gahanna, Ohio 43230 Meeting Minutes Finance Committee Michael Schnetzer, Chair Karen J. Angelou Brian D. Larick Jamie Leeseberg Nancy R. McGregor Brian Metzbower Stephen A. Renner Kimberly Banning, Clerk of Council Monday, November 27, 2017 Council Committee Room Immediately Following Committee of the Whole CALL TO ORDER Chair Schnetzer called the meeting to order at 7:27 p.m. Present 7 - Michael Schnetzer, Stephen A. Renner, Nancy R. McGregor, Karen J. Angelou, Brian D. Larick, Brian Metzbower, and Jamie Leeseberg 2018 BUDGET DISCUSSION ORD-0102-2017 TO MAKE APPROPRIATIONS FOR CURRENT EXPENSES AND OTHER EXPENDITURES OF THE CITY OF GAHANNA, OHIO DURING THE FISCAL YEAR 2018. Angelou asked when the business plans are expected to be complete; Teal said Finance, IT, and Development are in progress; next week we start Parks; and have Service in March; PD will be after transitions this summer; hopefully done next year with complete budget integration for smaller departments; large departments with a lot of line items - might wait for new software system to be in place; making good progress; Angelou asked what is occurring in that plan; Teal said provided examples in updates for HR and Mayor's Court; budget document looks different and includes different information; strategic goals are being defined for each department; Angelou asked if it will change annually; Teal said minor changes or adjustments; every 2-3 years, will take a larger look; Angelou asked if this progress will be online quarterly; Teal said will produce quarterly updates on how they are working toward their goals; Mayor Kneeland said because these are department goals, can use these as individual goals in each department; Angelou said this will streamline the process; noticed a large increase in operating in HR; Teal said that was the wellness center; Angelou asked about the salary increase; Teal clarified; Larick asked what is in place to determine City of Gahanna Page 1 Finance Committee Meeting Minutes November 27, 2017 success with the wellness center; Cochran said one place has to do with sick time use; have measures in place; looking to reduce sick time by 25%; Larick asked if that is the key cost recovery number; Cochran said key cost is reduction in claims; people will utilize the center; if claims go down, hope our premiums go down; Cochran said cost in 2018 we expect to break even; will do future analysis for future years; Larick asked if HR is complete for the business plan; Cochran said complete; all metrics identified; Larick asked if there are underlying metrics for work-time loss or others; what are the indicators; Teal said we have a measurement system in place to capture this information on a routine basis; will keep us from getting behind or not knowing who will get the data; for each measure, we have a data collection system; Larick asked how will Abby know she is off-track; what point will she know; Teal said set a data frequency; guessing that will be quarterly; Cochran said we built targets into that system as well; Angelou asked about collaborating with the wellness center; Cochran said there are others; the contract now is a 3 year agreement that renews annually; we have talked with them to reduce our cost with higher participants; Metzbower said that issue is with space; Cochran said they have capacity right now; Angelou asked about the Parks & Recreation increase in salaries and benefits; Barr said there were a lot of vacancies that will be reflected in the numbers; the part-time and seasonal, there was a net-increase in life guard requests; we have 2 diving boards at the pool and Franklin County changed their recommendations and that increased the need for lifeguards; another opportunity built in for promotional situations; have worked a lot with HR to retain; have a lot in seasonal and part-time year round; McGregor said 2017 number is appropriated, not actual; Barr said we did not fill all 181 positions in 2017; Bury said part of it is basic increases; 4% increase in benefits and 2.5% standard salary increase; Larick said about the lines for part-time, seasonal and full-time; Bury said different with Parks & Recreation; Teal said one of the primary goals with the new accounting system; Leeseberg said page 138, we put $100K to replace water line; will take 4,000 years to replace all lines; this is supplemental or for emergencies; Priestas said used for emergency repairs or small projects; have a sanitary sewer operations and maintenance program; this will be a 2018 project to dive into; Franey said we want to move into a formal asset management program; have separate programs going on; want to bring it all together in an asset management program; we are not in as good of shape as the street program, but not in bad shape; in 2018 will firm up asset management; also plan to have someone come in and do a full-blown rate study; Angelou said noticed Columbus is raising their water rates; asked if it is included; Franey confirmed; Schnetzer asked about water capital improvement asking for $50K instead and loosen funds for another project; Franey said have two funds; clarified his question; Teal said City of Gahanna Page 2 Finance Committee Meeting Minutes November 27, 2017 water capital improvement fund has multiple line items; Larick asked if there are engineering standards; Priestas said yes for water lines; Angelou asked about Development; operating decrease; Bury said related to office and industrial incentives; Jones said the number of projects have a short timeframe; see a lot running off; new ones coming on; Angelou said a decrease also in Service; Bury said there was a large amount for an emergency; believe in fuel line item; if it was an emergency, would come to Council; Angelou said asbestos and demolition for 181 Granville; if I disagree with that - will this come back to Council or will it be done after this; Franey said in the fleet program - if it is on the state contract and does not need to be bid, we do not bring to Council; Ewald confirmed; Franey said for 181 Granville, will bring that contract forward to Council; McGregor asked the .25 Director of Public Service; Bury explained funded by proprietary; Metzbower asked Bury about issues with income tax projections; Bury said do a 12 month flat to see how we are trending; Teal said we ask RITA more frequently than our peers; started to ask more detailed questions; asking why for increases and decreases; are we seeing trend or out of the ordinary; Teal said we know what we are doing from a development standpoint; they do not know; have been developing the trend scenarios on our own; Angelou asked about police funding lines of $75 reduction; Bury said did away with police radio and did a small reduction in fleet; Larick asked why it skipped a year; Bury said a grant; Franey said their fleet was reduced as part of evaluating the program and reduced a bit on a regular basis; McGregor asked if we looked back to a while ago and the people paying income tax; Teal said a number of new accounts that had not filed; started seeing the increase when they started filing; Larick asked about page iii; reductions that occurred this year - what were those items; how can we get that list; Teal said it is not in one place, can provide that; Detroit Streets moving from SOM was a big piece; Larick said page iv; Bury said wanted to show what was happening in 2018; Teal said we will have 12.2 on January 1. will not use all in 2018; Angelou said forwarded out the project for 670; potentially beneficial to us in the near future; happening December 14; Larick asked Parks about the pools; page 132; Barr said both boilers need replaced; Teal said in 2018 we will replace 1 and in 2019 replace the other; neither replaced since the City took ownership; Larick asked when the picture in the lower left was taken; Barr said within the past 24 months; why we have a liner request; Larick said we just completed the VFW property closure; plans for park development including the pool property; at $3K a year, this is many years of payback; Teal said the lining project buys 10 years of life to have time for a plan for a complete renovation; Barr said in 2020 we need to replace the slide; Larick asked the boiler replacement cost; Barr said roughly $25K; lifespan is roughly 8 years. December 4 - Introduce - Public Comment Permitted City of Gahanna Page 3 Finance Committee Meeting Minutes November 27, 2017 December 11 - Committee Discussion December 18 - Consideration for Adoption - Public Comment Permitted ADJOURNMENT 8:20 p.m. City of Gahanna Page 4