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<br />MINUTES OF THE FINANCE COMMITTEE <br />June 17, 2019 <br />East Conference Room <br />Present: <br />Councilmember George, Bullock(7:15 p.m.), O’Malley <br />Also Present: <br />CouncilmembersAndersonand Rader,Finance Director Pae, Human Services <br />Director Gelsomino, Clerk Bach, one member of public <br />Call to Order: <br />7:03 p.m. <br />th <br />ChairmanO’Malley moved to approve the minutes of the May 20Finance Committee meeting. <br />All members voted in favor. <br />Communication from Councilmembers Rader and George regarding gas tax increase <br />approved by the Ohio General Assembly <br />Director Pae explained that the gas tax increase goes into effectJuly 1.The increase will go <br />directly into the SCMR fund. The City currently receives monthly disbursements from the gas <br />tax into this fund. There are no other changes except that these line items will increase. <br />Director Pae provided an explanation of the SCMR fund. The fund is comprised of revenues <br />from the gas tax and license plate registrations. The fund isestablished in state statute and ORC <br />dictates how the fund can be used. She read from an email that she provided to Council about the <br />parameters of the fund. Essentially, it can only be used to pay for expenses directly related to the <br />costs of highways, roads, streets, traffic lights, and signals. Lakewood’s primary uses of the fund <br />are to pay the salaries of the Streets Division employees who patch and plow the roads as well as <br />work on trafficsigns and signals. Its next largest expenditure from the fund is salt. The City <br />budgeted$250,000 in 2019 for road salt. <br />Director Pae discussed the projections for the fund: <br />$2 million was brought inin 2018. <br />$2.5 million is anticipatedin 2019. <br />$3million is anticipatedin 2020. <br />Director Pae noted that the City’s policy has been to issue debt for the construction of roads. The <br />SCMR fund can be used to make payments on this debtand she recommends maintaining this <br />practice. She explained that using debt to pay for roads allows the City to spread out payment for <br />roads over the entire course of their useful life. <br />She stated that the SCMR fund can be used to maintainand establish bike lanesbecause they are <br />part ofthe roadbutthatthe funds cannotbe usedfor public transit. She noted that public transit <br />authorities wereseparatelyprovided an increase from the gas tax. <br />1 <br /> <br /> <br />