11/19/1996 Meeting Minutes - Laserfiche WebLink

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Council Minutes of 11/19/96 .,,, Law Director Gareau: 1) Responding to Mr. Musial's question regarding the future with respect to our bond rating, he believes one of the things the city has going right now is all fund balances are in the positive mode. At the same time, we have reappraisal which will mean increased real property tax revenue. He feels that the bond rating the city received was more of a scolding than it was reality--it was their way of sending a message. All indications and signs were very positive at the time of the New York meetings. The bond rating did not impact the city because we obtained the insurance premium quote prior to the issuance of the bond rating. Nobody likes to have their bond rating downgraded, but the city fixed those things that needed to be fixed. He does not believe average citizens are aware of the bond rating, but they are interested in the fact that their streets have been repaired. He feels positive that in the near future the city will be upgraded to its proper position. 2) He had indicated at the last Council meeting that we were having some problems with the firefighters union regarding their refusal to accept the conciliator's decision on hospitalization coverage. After this decision was rendered, the firefighters filed a grievance asking that an arbitrator be appointed. On behalf of the city, he has filed an unfair labor practice against the firefighters union. This was a very serious and drastic move, but one that was valid. He believes the union was totally recalcitrant with respect to following what they are obligated to follow under the law. Also, he believes a letter received from the union indicating it would be cheaper for the city to compromise what the conciliator has already awarded amounts to intimidation. Filing of the unfair labor practice was warranted, and he will follow through on behalf of the city. 3) The Law Department is currently handling some criminal cases in the Court of Appeals resulting from cases prosecuted by the City Prosecutor in Rocky River Municipal Court. Finance Director Burns: 1) He has asked that Resolution 96-176 be removed from this evening's agenda for further review. This legislation spells out the investment policy for the city. The financial institutions and the law firms who have drawn up the investment policies are currently in disagreement over a provision having to do with delivery versus payment rules on repos. The legislation will probably be amended. 2) Resolution 96-177 has been amended. This resolution establishes the tax rates for the city, and the amendment moves a half mill from the Bond Retirement Fund into the General Fund. The half mill equates to about $325,000. This amendment was necessary because of the effect of the lower interest rate on the bond issue that was sold today and also because the bonds will be issued a month later than had been anticipated when the tax budget was originally prepared. 3) The 1995 audit will be released on November 21. The preliminary official statement went out without the 1995 audit; therefore, a portion of it will have to be rewritten once the audit is released. 4) The bonds were sold today at an average rate of 5.49%. As has been indicated, they were sold at AAA rating because they were insured. The insurance on the $43 million bond issue was 16.2 basis points, which equates to a premium of approximately $113,000. The $11 million bond issue in 1992 was insured at 32 basis points with a premium of approximately $82,000. This issue was structured differently than anything we have done 4 f