11/17/1987 Meeting Minutes - Laserfiche WebLink

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Council Minutes of 11/17/87 -3- interest at a 1~ premium; after January 1, 1988, can call it at par and will call it at par. City will call the remainder of the issue, the call actually ~* going into effect probably June 1st and make all payments out of the money that ~' is in Toledo. What this will do is free up monies that normally have been spent from our Wastewater Treatment Plant. The additional investment income, etc. will probably amount to $200,000 more than what is needed to retire this. issue. That will be returned to the City. Now, under the agreement in this bond, that excess can be used either to pay the bond, which will be retired so that's moot, or for capital improvements. Under other agreements, city has tended to define capital improvements as the plant itself or the transmission lines. In short, the city will have approximately $200,000 it can use to alleviate flooding con- ditions since it already has agreements with EPA to fund the actual renovation of the plant. This would more likely go to the transmission lines. and alleviate flooding especially in the west end. It could not be used for streets nor could it be used for the water line; it would have to be capital improvements associated with wastewater treatment. 2) Depository contracts expire December 31, 1987; has notified all existing contracted banks and all other area banks that new ordinances will be intro- duced next month. Have been receiving their responses and contracts. Will submit legislation through the Finance Committee for council's review. 3) Received the city's rate resolution from the county telling us what our property tax rates are. There is a problem - they left out all the numbers; percentages were shown but no .dollar figures. They are waiting on the state for 920 money; will inform the city of that; Finance Director will add this to the resolution and will probably ask for suspension of rule requiring three read- ings on this legislation on December 1st as well as on the legislation directing them to pay the city all property tax due and owing it. Would appreciate all councilmen to be in attendance on December 1st in order to act on this legislation. 4) With respect to Regional Income Tax, the cost of collection is at 2.27 right now as compared to 2.37 last year. It is projected at 2.48 this year; last year it was 2.56 so the costs are down. On the bad side, after eleven checks, city is only up to $946.68, approximately a .027 increase and has the lowest increase of any city in RITA that has an increase. A delinquency program is going on right now; ten day subpoena program started yesterday. There are 2,500 people who are identified delinquents; they owe taxes; they owe a penalty; they owe interest. This list of 2,500 comes to one quarter of a million dollars. The contract with RITA says they will collect taxes off of tax forms; they will bill; the city then authorizes them to go into the subpoena program which they are now doing. This is an additional cost but is relatively cheap for the amount of money to be collected. The next stage is to go to court and it is up to the Tax Administrator to authorize them to go to court. The city stopped making any authorization, past the subpoena program, in 1984. The administration has not authorized them to go to court. In essence, if a person owes money to the City of North Olmsted, he could show up for his subpoena, produced his information, show there is a de- linquency and not pay it, not be bothered about it because RITA is not authorized to go after him any further. Finance Director suggests the Tax Administrator authorize RITA to carry on through court; it doesn't involve the city Law De- partment; RITA has its own legal staff. All the City of North Olmsted has to do is authorize RITA to proceed; there is an identified one quarter of a million dollars out there and the list is growing. 5) With respect to the Mayor's report, Finance Director would like to state that he DID NOT agree with Mr. Cunningham's financial figures and at the meeting had pointed out a large discrepancy in insurance. Feels the entire argument is moot since it all revolved around the leaf pickup.