3/5/2007 Minutes - Laserfiche WebLink

Home Browse Search

Minutes of a Meeting of the North Olmsted Parks and Recreation Commission March 5, 2007 Mr. Scarl asked if the City was capable of funding if need be. Ms. Copfer said she tells Council the same thing: it’s all a matter of priorities. Where are the priorities in the City? Recreation is really important; but there are other people who couldn’t care less about Recreation, and they think we should be spending everything for police and fire. However, if we don’t have the Service Department out there maintaining roads, the police and fire won’t be able to get down the streets if they’re not maintained. She feels that every area of the government is important and a priority. It’s the administration’s responsibility to determine where its priorities are as well as Council because they control the purse strings. They work together to come up with those priorities. However, our General Fund monies come from estate taxes which the federal government and state government have reduced and talking about eliminating. The local government fund has been stagnant for two years. The City does get property tax increases. We did get some this year because the valuations went up, but in the interim, it’s flat or one percent. Actually, it will be going down because personal property taxes are going down. So the City has similar struggles on a bigger scale in the General Fund because the City can’t do too many new programs. The City can do some licensing; in fact, in 2002 when there were recession issues, the City looked at some of its revenue streams and decided they weren’t updated appropriately. The City does not want to shut out competition and charge so much for businesses coming in that they don’t want to come to North Olmsted, so each area has to determine pricing. The City did do that in the General Fund, and we did start billing for EMS runs for residents, which was a big item. Eventually, it will cost everyone in their insurance rates. Mr. Baxter asked if there was a mandate on how much must be in the General Fund. Ms. Copfer said it must be balanced; there can be no deficit. The Charter does not have a mandate. On the average, a ten percent carryover is good, and this number is 32 days of operating expenses in the General Fund ($1.8 million). The Finance Department would like to have two months there. The City started creating a budget stabilization fund; of course, timing is everything, and that’s when 2002 hit when that went by the wayside. We can reprioritize anything we need to, but the reality is that everyone is in the same pinch. Our general fund shows wages and benefits at 85%. If you factor out just safety, it’s over 90%. That is where our money is going; that and debt service. We’re a service business. Mr. Groden asked about the Clague Park Fund. Mr. Barker said that Deerfield between Clague and Walter used to have a swimming pool, and the homeowners’ association dissolved, and no one was taking care of the pool, so that pool land was sold to the City, and that’s where all those improvements came from, and there was still some money in there. That’s how the City got the ball fields and the playground equipment. Mr. Groden asked if it was separate from the Rec. Ms. Copfer said that Recreation controls it. It was a specific purpose, so a special fund had to be created for it. Also, the huge storm sewer retention system that was built below helped to create some of it as well. Mr. Baxter asked about other revenue being assigned to the Recreation Department: the real estate levies…Ms. Copfer said there is a .7 and a .5 – the Recreation has charter millage that was originally spent, and back in ’97 there was a temporary or capital improvement operating levy that was voted as permanent, so the Rec gets 1.2 mils. It comes from the County, all property taxes, and includes tangible and personal property. That will be going down. Mr. Baxter asked about the residential ten Page 5