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, May 14, 2018 Council Committee Room Immediately following Committee of the Whole CALL TO ORDER Chair Schnetzer called the meeting to order at 7:19 p.m. Present 7 - Brian D. Larick, Michael Schnetzer, Stephen A. Renner, Karen J. Angelou, Nancy R. McGregor, Brian Metzbower, and Jamie Leeseberg 2019 BUDGET DISCUSSION - Sustaining Operating Model Schnetzer said deeper dive into budget; Bury said look at aligning with revenue sources; want to maintain infrastructure; asking departments to stretch out dollars over years if possible; Barr explained purchase of playgrounds as an example; a playground is typically replaced every 15-20 years; smaller vs. larger playgrounds have different costs associated; current funding of just $50K for 2018, would need to save 3 years to do one playground; asphalt is another item; at $100K for 2018; previous years were slightly more; did parking lot at golf course in 2017; Headley Park parking lot needs redone; would need to save for 6 years to get to $100K to redo Headly Park; not doing any maintenance; at Creekside receive money to maintain that area; saving for slide for aquatics; updated pool liner this year, out of SOM; Larick asked about the outline being detailed to understand what needs considered to run capital items to run in environment; really true reflection of cost; Barr said playgrounds are inventoried; focusing on parking lots and trails; trails relatively new; also Creekside; have done part of aquatics with boilers; has been year-to-year in the past; still have work to do for parking lots and their inventory; looking at asphalt program; Leeseberg asked about looking at Creekside layout, where are we in that process; Barr said met City of Gahanna Page 1 Finance Committee Meeting Minutes May 14, 2018 last week to start defining that scope of work; goes beyond Parks & Recreation Department; will talk with property manager of Creekside; can include Council; Schnetzer said were a handful of broad categories for Parks; trails, parking lots, golf course, carts, Creekside; any other broad categories; Barr said not a SOM for major renovation; ensuring fields are sloped and leveled is not something we can do in house; Angelou asked about drainage; would there be more ability to have soccer tournaments if that was resolved; Barr said postponements occur due to weather; we provide a service in addition to the revenue generator; Leeseberg said lost dates due to weather last season; Mayor Kneeland said regarding forecasting for SOM; asked all department heads to do a good inventory of capital assets and refresh what we are doing for long term maintenance costs; they are very expensive expenses; said Barr has been doing a good job since appointed; is a work in progress; want to provide the best estimates; difficult with daily operations; Schnetzer explained the goal of these meetings; what the overview is intended to accomplish; Bury explained we have a minimum amount of spending but also a requirement to maintain at a certain level; is a two-prong approach budget; Larick said assuming we have identified requirements to operate City; and they're in operating and sustainable model; if revenue excess, can set aside for future; revenue shortfall, there are adjustments; extreme miss of communication or understanding that there are deferrals of items/activities; significant communications gap; we all need to communicate and understand that; Bury said the tie with capital needs assessment, that is it; they are putting in what they need; to make final tie back to CNA and what was given in summer is needed; Larick said it needs to be simple; clarity on what is being deferred; Leeseberg said we add new things to CNA each year; things on level 3 that will never get moved up; not a good way to do this; not sure of a better way; Larick said difference between needs and wish list stuff; Mayor Kneeland said things being deferred is not good budgeting; depends on definition; seems like we need to start early and evaluate inventory; make sure everyone is aware of where we stand financially to wrap our arms around what we need long term; doing things hoping for grants; not sustainable model; Bury said moved CNA up to June timeframe to get that in front of Council earlier; maybe didn’t explain purpose of getting that out earlier; could improve communication; show the numbers before the end budget book; Mayor Kneeland said a lot in CNA is maintenance; more of a technical term; new capital vs. maintenance; Schnetzer said works in public finance; we have policy that says we will only use reserve bucket for one-time/new stuff; and another policy that says we are not touching certain items; but hearing we are not maintaining; Larick explained his rationalization for the policies; have bucket of money that does not have money going in, have to use on one time new things; Mayor Kneeland said should have revenue for City of Gahanna Page 2 Finance Committee Meeting Minutes May 14, 2018 maintenance of new things going in; Bury said 100% of ongoing revenue sources has been for operating; Schnetzer asked when the last time City met capital needs and had carry-over; Bury said 2016; had asked for deferrals; only year recall; Larick said confident that efforts and values are reasonable baseline; is the rest of Council in agreement; Schnetzer said still struggling, not adding up; SOM is not fully funding things at the replacement cycle; would not mind unpacking that more; will defer to Council; can go department by department; Leeseberg said went line by line to see what was taken out and where we were at with projects; would love to see what did not make the cut; Larick asked if Council has a basic understanding of what goes into it; SOM component is a layer above; Schnetzer asked for more topics that need explored more; Larick said capital needs tied to sustaining operating model; Schnetzer said action items: more dialogue where there are gaps; earlier awareness; reconvene in 2 weeks with Leeseberg’s ask of what various capitals were backed off. 2018-0073 2019 Budget Discussion Documents ADJOURNMENT 8:10 p.m. City of Gahanna Page 3