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MINUTES OF THE FINANCE COMMITTEE June 24, 2019 East Conference Room Present: Councilmembers George and O’Malley Also Present: Councilmembers Rader, Finance Director Pae, Keith Schuster of the Finance Department, Assistant Law Director Swallow, Clerk Bach, and Deputy Clerk Lascu taking minutes Call to Order: 6:55 p.m. th ChairmanO’Malley moved to approve the minutes of the June 17Finance Committee meeting. All members voted in favor. RESOLTION 9076-19-A RESOLUTION to take effect immediatelyprovided it receives the affirmative vote of at least two thirds of the members of Council, or otherwise to take effect and be in force after the earliest period allowed by law, approving the Tax Budget of the City of Lakewood, State of Ohio for the year 2020, and authorizing the filing of same with the Cuyahoga County Fiscal Officer. (Referred to Finance Committee 6/3/19) Director Pae stated that the City is obligated per the Ohio Revised Code to have a tax budget that is passed by a legislative body (city council), which is then submitted to the county. Resolution 9076- 19 and Resolution 9078-19 give authorization to the county to continue to collect the millage amount that has been established in the City’s charter. She added that it is the responsibility of the Finance Department to estimate the City’s levies and compile a document that will be submitted to the state regarding Lakewood’s property tax levels. The county gives a separate estimate of this as well. Keith Schuster of the Finance Department added that the amount that Finance is requesting is based on the prior year that had been authorized, adding in 1% inflation. The county typically provides an analysis of a community’s tax collection percentage and Lakewood’s was found to be at 98%. It is important that Lakewood request the correct amount of tax revenue that it needs because the county could technically take some of the tax revenue that Lakewood has collected and give it to another community if there is an excess of revenue. This has happened once in Mr. Schuster’s lifetime. The revenues returned to Lakewood cover the debt service fund. Director Pae noted that the Police and Fire pension millage amounts are set by charter. These amounts can be adjusted without a vote to match supporting needs of funds. They are currently adequate with the millage sitting at 1.68% for Fire and 1.6% for Police, allowing sufficient coverage. If the administration needed to increase those amounts, Director Pae stated that her department would come before Counciland submit a formal request. However, Finance is not changing those rates at this time due to increases in property valuations. Director Pae added that the Finance Department needs to show all of the City’s funds as part of the budget process, going off the 2018 amounts. Finance staff provide high level estimates based on what the City spent in 2018 and what they know/can predict. For example, the Lakewood Hospital Fund will have a $13 million fund balance post-demolition and will be receiving $1 million in revenue from EMS transports.These figures, however, will not be in upcoming appropriation ordinances.