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, December 17, 2018 6:00 PM Council Chambers CALL TO ORDER Chair Schnetzer called the meeting to order at 6:02 p.m. All Council Members present. PENDING LEGISLATION ORD-0099-2018 TO MAKE TEMPORARY APPROPRIATIONS FOR CURRENT EXPENSES AND OTHER EXPENDITURES OF THE GENERAL FUND TO JANUARY 31, 2019 AND TO MAKE APPROPRIATIONS FOR CURRENT EXPENSES AND EXPENDITURES FOR ALL OTHER FUNDS DURING THE FISCAL YEAR ENDING DECEMBER 31, 2019 FOR THE CITY OF GAHANNA, STATE OF OHIO. Schnetzer said we have looked at reductions and from what we have heard, there has yet to be a consensus on reductions; there has been talk of a temporary budget; asked what is Council's appetite for a 1 month temporary budget and to remove all capital; doing so would allow Council and Administration another 30 days to further deliberate. Leeseberg said at the end of the meeting last week, Larick said he felt like we have gotten nowhere; feels the same. Schnetzer said historically, bids go out in first half of February; if bids went out tardy then responses could increase in cost. Franey confirmed. Leeseberg said we would be left with 2nd tier contractors. Schnetzer said we can't afford that, asked are we going to buckle down and come up with a budget? Larick said he has spent a lot of time going through alternatives and scenarios; said they are not ready; don't want to go past January 31; can support a 30 day extension but we have a lot of work left to be done. Angelou agreed with that fact; one month is the right timing because it pushes us to find what we need to find; said this is not a-typical, to do a one month version; finding cuts is painful; we are in a situation where we are never going to find enough cuts to make up for what we would’ve gotten from Issue 29 if it had passed; need to look at getting more revenue; knew there would be challenges if Issue 29 City of Gahanna Page 1 Finance Committee Meeting Minutes December 17, 2018 failed; we looked at the core services of the City; we must work as fast and prudent as possible; no capital included in the temporary budget so no issues from auditor report expected; we would be doing what the law allows; we will find a way. Renner concurs with what he's hearing; would also prefer that we spend the extra month to get ready; we can't cut our way out in 2019. Schnetzer said for the good of the order, would be good to clarify; cuts are offsetting expenditures; agrees that more time is needed; wants to provide adequate funding for old capital that may be failing. Bury said she can have 2 ordinances prepared, one for a 90 day budget, one for one month. McGregor agreed with one month; said years ago when Council meetings ran late, a former Councilman said nothing productive happens that late, and so he would have a standing order ready for pickup those nights at the local pizza shop; fears we are in a similar situation; fears that 90 days would be too long and unproductive. Larick said there’s a concern that there are dark reductions and yet those are not enough. Schnetzer said we don’t have residents saying we are doing TOO much; they don’t say we are paving streets TOO well, or providing TOO many services; the City’s challenges are not on the expenditure side, but on the revenue side; costs to fund events exceed resources; all options are on the table to explore how to meet those demands; would be easy to not fund capital and delay for another 3-5 years, but that will cause us major problems in the long run. Angelou said passing a temporary budget is something we can do. Renner asked for a reminder on the schedule if we were to do this. Larick said prior to 60 days, were 3 public hearings; must have legislation by 1/24. McGregor asked for general language for ordinance as a placeholder and it could be amended later. Larick said we need to confer with the City Attorney about what the minimum requirements are and what can be added and amended. Schnetzer said we need to think about $3 million worth of capital projects which could turn into $4 million down the road. Renner said we can't have one time cuts either; they must be continued. Larick said a reduction to a 50% credit is a starting point and that starts the clock. Angelou said perhaps we can have a graphic that shows where we would be at if we had different percentages of credits; said the cuts are not making it. Schnetzer said we all saw the tables that were part of the educational material for the levy; Gahanna was 2nd from bottom for revenue per capita; asked for reduction by half. Larick said put on the agenda for Introduction for January 2, 2019; should expect weekly meetings. Angelou said we should meet the 7th of January. Schnetzer reiterated that the ask of Council Office is to draft legislation to be introduced for January 2, to decrease the credit to 50% from 88.3%. City of Gahanna Page 2 Finance Committee Meeting Minutes December 17, 2018 1. 2018-0073 2019 Budget Discussion Documents 2. 2018-0153 Updated Capital Needs Assessment (for years 2019-2023) ADJOURNMENT at 6:37 p.m. City of Gahanna Page 3