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, July 23, 2018 Council Committee Room *Immediately Following Committee of the Whole CALL TO ORDER Chair Schnetzer called the meeting to order at 7:56 p.m. DISCUSSION FROM THE DIRECTOR OF FINANCE 2018 Captial Needs Assessment Update (for years 2019-2023) Bury said the Capital Needs Assessment is being refreshed for 2019-2023. Created in same manner as in the past. Sent out list of projects, got updates. Tonight is just an intro, not going into detail, just for you to start looking through it. End goal when we start discussing budget that you can look at funds available, what are some of the projects you might want to see in 2019 budget. On page 3 we listed items that are new this year. You also might see some items that are no longer included, either because they were completed or it’s no longer desired to keep project in the forefront. We’ll keep this on the agenda each meeting. Council should send questions to the City Administrator and she’ll keep it all compiled. Schnetzer said this may be fast-forwarding a few weeks, but has the administration given any thought to how to structure the 2019 budget in regard to approval vs non-approval of the tax issue? Mayor Kneeland said we have not developed anything yet because we’re still working on developing what we need for the tax issue. If you have an expectation, we can certainly work on that. Schnetzer asked do you have a framework that council can work from? If not, I’m happy to work on putting that together. Bury said we don’t really approve the CNA. It’s a budget-development tool. It doesn’t need any real action. Mayor Kneeland said in the past, we would have to put things in the budget we could afford and then the rest were just a living document. Schnetzer said City of Gahanna Page 1 Finance Committee Meeting Minutes July 23, 2018 in lieu of the word approval, there’s a litany of items showing a cost associated in 2019. Some will get funded and some will not depending on November 7th. Does it make sense to have an either-or? When would you need to have that in order to move forward with the budgeting process? Bury said the plan is to provide Council the proposed budget around 10/22. So before we actually deliver it to you, we’d like to know back from you what you want funded in 2019. Similar to last year I’ll have what the original request is. Don’t have exact format, whether it’ll be side-by-side or different documents. Don’t want to pull things apart at the last minute. If that would be favorable for the Clerk, maybe one with an ordinance if it passes and an ordinance if it does not pass. Schnetzer asked What’s RITA’s estimate? Bury replied 1st year 30%, 2nd year 70%, 3rd year 100%. Schnetzer asked what can be expected in 2019? Bury replied a little over 2 million. We have that 3% accumulator based on a little growth. Year 2 a little over 6 million and year 3 a little over 9 million. Schnetzer asked is there any discussion about pulling any of those collections forward? I have residents hounding me about paving their street. Is there a way to have any tax anticipation notes so you can expend them in 2019 so residents can see results right away? Mayor Kneeland said we’ve had discussion about ramping up in anticipation that we’ll be successful. But how much capacity do we have internally to do the programs? Say we have 5 million, we might not have the capacity to do 5 million right away. There’s also prioritization for streets that we need to work through. We need to be careful that we stay in sync with the rating program. We are having some limited conversations but nothing seriously meaningful yet. Schnetzer said it’s difficult not to jump ahead. I’d love to be able to say we could double the Detroit street program. Priestas said I think we have to take a hard look at Detroit. This year we have 1.9 million to replace 1.2 miles of street. That’s about our engineering capacity. If the funds were realized come fall, we’d be able to continue to fund that program, but then key in on the resurfacing to get that up to 75 where we’d like to see it. Angelou said I think the overlay has to move ahead. When you look at the map on the website-and a big hoorah on the website, we should market that-it’s amazing how many streets are in bad shape and I think we need to move that ahead rather than the Detroit streets. Priestas said we have we have 8 or 9 miles left. Leeseberg said one of the problems is that if you tear up every street you can’t get around. Angelou said and you have 670 issues. Has there been any information about us going toward the 670 process? Priestas said we have been in communication with ODOT, so absolutely, we’ll have a partnering meeting in a couple weeks. Schnetzer said I’m not asking anything concrete tonight, but follow up on page 9 of CNA, approximately 2 million through 2023. What would be feasibility of doubling that? Priestas said I’d say today we don’t have the capacity to double it. And we don’t have enough streets below 75 that we would normally consider. City of Gahanna Page 2 Finance Committee Meeting Minutes July 23, 2018 Also, to get to the mayor’s comment that we don’t want to get program out of sync and are replacing streets just to replace them. Right now we couldn’t double Detroit street program. Leeseberg said the other problem is if you encumber everything now, 20 years later you have to replace it again. Schnetzer said that’s why it’s a lockbox, it’s sitting there. Bury said the next big thing we do is by 7/30 we’ll have operating pieces out to each department so they can work on requests for salaries. Once done we’ll come together and start looking at the capital piece and improvements. 2018-0153 Documents related to 2018 Capital Needs Assessment (for years 2019-2023) CONTINUED DISCUSSION 2018-0073 2019 Budget Discussion Documents See discussion above. ADJOURNMENT 8:11 p.m. City of Gahanna Page 3