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 Thursday, December 6, 2018 7:00 PM Council Chambers CALL TO ORDER Michael Schnetzer called the meeting to order at 7:00 pm. PENDING LEGISLATION ORD-0099-2018 TO MAKE APPROPRIATIONS FOR CURRENT EXPENSES AND OTHER EXPENDITURES OF THE CITY OF GAHANNA, OHIO DURING THE FISCAL YEAR 2019. Mr. Schnetzer asked of the Administration, does a path exist, or what do the statutes say, to pass a temporary budget to fund the city for a temporary period of time while Council considers recalibrating? Ms. Bury said Ohio Revised Code section 5705.38 allows for a temporary budget until April 1st for ordinary expenses. I interpret that to mean operating expenses only. The easiest way would be to take the operating budget and take one-fourth of it for the first quarter. Our charter does state that the laws of Ohio apply as long as the charter or some other ordinance does not state something different. Section 3.08 of the City charter talks about appropriations, and it doesn’t speak to a temporary budget, so we would defer back to ORC. Mr. Larick asked if there is any issue with pursuing bids if the technical appropriation hasn’t occurred. Ms. Bury said my knowledge is that if you don’t have the appropriations you don’t have the ability to bid. I would refer to Ms. Franey. To my knowledge the appropriations have to be there before the bidding process. City of Gahanna Page 1 Finance Committee Meeting Minutes December 6, 2018 Mr. Renner said at the County you must have the appropriations before going out for public bid. Mr. Metzbower said he would feel more comfortable if we had counsel or the Legislative Service Commission or some other organization give us an opinion. Ms. Bury asked if Council would want something from the City Attorney. Mr. Metzbower said he would feel more comfortable if someone could comment; someone who deals with this regularly. Ms. Bury said she would probably turn to the Auditor of State’s office since they audit us annually. Mrs. Angelou said in the past this has happened but it was typically just for a month. Ms. Bury said you don’t have to take the full three-month period, but you can go through the end of March. You have that period, then you have to appropriate permanent funding. Mr. Larick asked what happens if that permanent funding doesn’t happen. Ms. Bury said you can’t do anything until you appropriate funding, so you would be unable to spend any money until appropriations were approved. Mr. Schnetzer said you defined “ordinary” expenses as operating. We have tried to segregate and categorize our expenditures for a while now. There are salaries and benefits and shop rags, and then there are large-scale capital expenditures. Are we able to fund some portion of the capital so we can go out for bid? Ms. Bury said that would be up to the Auditor. If it isn’t clear, they’ll put it back to the funding authority, which is you, what you determine is “ordinary.” Mr. Schnetzer asked if we have any bond principle maturities or interest or loan payments due during that period. Ms. Bury said our OPWC payments are due by January 1st but bond isn’t due till June 1st. Mr. Schnetzer asked when it needs to be placed with the paying agent. City of Gahanna Page 2 Finance Committee Meeting Minutes December 6, 2018 Ms. bury said it will be going to Huntington; usually send that ten days prior, via ordinary mail. Mr. Schnetzer asked is there a desire to explore this further. Multiple responses of “yes.” What’s the appropriate next step? Have the administration compile one-fourth of the budget? Do we want a deliverable on Monday? Mr. Larick said at this moment doesn’t know if they can bring anything effective back. Mrs. Angelou said we have to do something for January 1st. Ms. Bury said she will look at whether or not we can pass permanent appropriations for everything other than the general fund. OPWC funds can’t come from the general fund, so that could resolve the loan payment piece, and for the special funds, we would already have those in place. Mrs. Angelou asked wouldn’t we have to do at least three months on the general fund as well? Ms. Bury said that’s correct, but we could then focus on just the general fund going forward. Mr. Schnetzer said that would probably make staff’s life easier as well so they can load that in by year’s end. For Monday we’re asking for the answers to those questions, from the City Attorney or from the Auditor’s office. What the temporary budget would look like and include and answers to your proposal about the proprietary funds. Mrs. Angelou asked will you have that information. Ms. Bury said yes. Mr. Schnetzer said I just want to state for the record that we are very privileged to have someone with Joann’s background here with those connections and that background in the Auditor’s office. We appreciate your service to the community. Mrs. Angelou asked if we have this information Monday, can we do legislation on Monday or do we have to come back? Mr. Larick said Monday is committee. Our position at this point is that assuming we get to a place where whatever can be done we have it go on with emergency and waiver of second reading on December 17th. City of Gahanna Page 3 Finance Committee Meeting Minutes December 6, 2018 Ms. Bury said it would be the continuation of the appropriations legislation, so I don’t think you have to have a waiver or emergency, you would just pass it as amended. 2018-0073 2019 Budget Discussion Documents 2018-0153 Updated Capital Needs Assessment (for years 2019-2023) ADJOURNMENT Adjourned at 7:13 pm. City of Gahanna Page 4