Finance Committee

200 South Hamilton Road City of Gahanna Gahanna, Ohio 43230 Meeting Minutes Finance Committee Michael Schnetzer, Chair Karen Angelou Merisa Bowers Brian Larick Jamie Leeseberg Nancy McGregor Stephen Renner April Beggerow, MPA, CMC, Clerk of Council Monday, January 25, 2021 Virtual Meeting *Immediately Following Committee of the Whole* Meeting Call-in Details: 513-306-4583 Conference ID: 246 658 73# A. CALL TO ORDER Chair Michael Schnetzer called the Finance Committee to order at 9:12 p.m. with all members in attendance. B. DISCUSSIONS 1. REPORT FROM THE DEPARTMENT OF FINANCE 2021-0017 DEPARTMENT OF FINANCE 2020 YEAR END REPORT Ms. Bury presented the end of 2020 Financial report which is attached to the record. Mr. Schnetzer said in recap the General Fund, total revenue down 13% year on year, the loss leader on a percentage basis is lodging tax followed by charges for services then followed by income taxes. Expenditures were down partly due to hiring freezes, other administrative decisions, supplemented by CARES Act funds such that the net result is an increase of fund reserve of 3.1 million. Ms. Bury replied correct. She moved on to presenting special revenue funds. Mr. Larick asked roughly 3.1 million increase in the final fund balance and how much in CARES dollars? City of Gahanna Page 1 Finance Committee Meeting Minutes January 25, 2021 Ms. Bury said the special funds didn't receive CARES dollars. Mr. Larick said he was still in the general fund. Ms. Bury said she can provide the full amount that was reimbursed after the meeting. The big number was 1.2 million that went for public safety reimbursement. Upwards of 1.3 million in reimbursements to the general fund. Ms. Bury asked if there were questions on Parks & Recreation. - None Mr. Larick asked Mayor Jadwin if there is a Parks 2021 report coming with regards to COVID and what's been going on. Mayor Jadwin said that they are looking at towards the end of February. Mr. Schnetzer asked if he is reading the budget vs. actual correctly. That they've all ended with sizable fund balances. Ms. Bury replied yes. Ms. Bury stated that many remote employees are being taxed as if they were still working at their headquarters. If that were to shift, there could be an $800,000 loss from remote workers. Mr. Schnetzer asked if residents that are working from home have withholding from occur where they live, that that results in a loss of income tax for the city? Ms. Bury said that RITA did, is look at 2018 how many non residents come into Gahanna vs. how many people work and live in Gahanna. If those non residents reporting where they are working remotely vs. where they are working remotely, that is where the loss would occur. She said she would share the information with Council. Mr. Schnetzer said that he always heard that the daytime population was always lower than the evening population. Mrs. McGregor asked if RITA can tell how much we would gain from people working at home. Ms. Bury said that they calculated that in also. Ms. Bowers asked if the calculation is different from the October letter that was forwarded to Council earlier this month. City of Gahanna Page 2 Finance Committee Meeting Minutes January 25, 2021 Ms. Bury said she wasn't sure. Ms. Bowers said that with pending legislation, there is a real opportunity to advocate on behalf of constituents and the city that you pay income tax where you live is changed at the legislative level. Mr. Larick said that he had a conversation with a couple of different accountants. In order for there to be a change from a withholding standpoint, there has to be a conscious action on the part of the filer or the person filing for them. It's not just automatic. There has to be a physical action for that to occur. It appears that most of the tax preparers are working on the process. It's not simple but the lower of the spectrum is more likely. Mr. Schnetzer asked if there have been any discussion about what the distribution of the future stimulus may look like? Ms. Bury said that right now there is not a lot of information out there. It may be a population based distribution but then the state has control on how it is dispersed. There is not a lot of information out there. Mr. Schnetzer said he saw a headline where they were targeting passage mid March or by the end of the first quarter. Mr. Larick said that in regards to the emergency fund policy, the chair of Finance should help participate in writing that before it comes to Council. Meeting adjourned at 9:53 p.m. City of Gahanna Page 3