05/17/1988 Meeting Minutes - Laserfiche WebLink

Home Browse Search

' Council Minutes of 5/17/88 -3 - 3) With respect to income tax and the new federal law, has written to the Regional Income Tax Law Department for information; will turn this information over to the city's Law Department and council if any action is required. The federal government has introduced a budget for next year that again includes Medicare coverage which will cost each employee 1.45 of his pay. This was presented last year and overwhelmingly defeated because it is more of a bail- out than an answer to the problems of Medicare. Squire, Sanders and Dempsey are following this particular item very closely; will keep council advised. 4) In 1982, the Treasury Department imposed restrictions on municipal borrowings; they all must be registered. City incurred a cost on its last issue which covered sewers and the municipal building. The State of South Carolina. sued the federal government and the Department of the Treasury; it went to the Supreme Court in April and a judgment was rendered. The Supreme Court held with the Treasury De- partment, not only with. their ability to restrict, through congressional action, but to allow them to tax the interest on municipal borrowings. This is unclear and is currently being studied by attorneys all over the county, including Squire, Sanders and Dempsey. They did say that it would take congressional action to tax us. Future buyers are going to look at the potential of paying taxes on the interest they pay and that will increase the cost of borrow3.hg., In the Finance Director's last six years, he has seen forced registration; basically the elimin- ation of arbitrage; reduction of interest earnings,. increase of legal cost of bonds; increase in size of bonds and the curtailment of the city's ability to answer capital needs. This will mean a budget crunch in the next few years a lot worse than the present needs. Mr. Boehmer, Chairman Public Safety, Health and Welfare Committee reported: 1) Committee met jointly with Transporation Committee, with all members present, to discuss Ordinance Nos. 88-54 and 88-55; Mr. McKay will report out on this meeting. Mrs. Bahas, Chairman Long Range Planning Committee reported: 1) Committee had a brief future-planning meeting; Mr. Puzzietello informaIl.y presented a proposal for the development of city property in the area of Marquette Drive. 2) Committee also discussed and agreed to commend Director of Human Resources, Don Copeland, for his successful efforts with the Community Development Block Grant proposal. 3) Committee heard an explanation of various styles of residential lot-line building proposals and discussed a future Council-as-a Whoie Committee Meeting to perhaps reappraise options for the development of city properties. Mr. Bohlmann, Chairman Intra-Governmental Relations and Legislative Committee as well as Recreation, Public Parks and Buildings Committee reported: 1) Legislative Committee met on Wednesday, May 11th for the purpose of interviewing Thomas Gallagher to fill a vacancy on .the Architectural Review Board and concurs with Mayor Petrigac's recommendation. Mr. Bohlmann moved council have no objection to the appointment of Thomas Gallagher to the ARB for a term commencing May 17, 1988 through December 31, 1989, second by Mrs. Bahas, unanimously approved. Mr. O'Grady, Chairman Transportation Committee reported: 1) Transportation and Safety Committees met jointly, with all members in attendance, as well as Safety Director Becker and Captain Krynak, to discuss Ordinance Nos. 88-54 and 88-55. Both ordinances are intended to eliminate the traffic problems on South Clague at Brookpark Road. Captain Krynak has been working with the signalization there and is giving more "green" time to Brookpark Road. Another meeting with Captain Krynak will be held before the legislation goes on for third reading. He also advised that the Brookpark bridge, going from Fairview into Cleveland, will open in October and that should also relieve the problems at 1480/Clague Road inter- section.