01/21/2003 Meeting Minutes - Laserfiche WebLink

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Council Minutes of 1/21/20(13 „~.~ reports which compare actual to the budget by line item, no system-generated tools exist ' ~~ to monitor and quantify results to the administration and Council for both the payroll and non-payroll expenditures in a detailed way. When everything is going well, this equipment shortcoming is not as obvious. But this year's definite need to know made it clear how inadequate the 1980 software is, and it was one the many fiustrations of 2002 for her and her staff. As Finance Director, she ensures expenditures are made and reported properly, there is a valid purchase order and there is money available to expend in the appropriate line item before a purchase is made. She monitors and questions, but cannot take credit for the monies not expended from the budget. She can only account for it in a timely and proper manner. One objective from last year we must finally strive for is to move this city's budget away from appropriating every cent. This should be accomplished by not relying on the unencumbered balance from the previous year as estimated resources in the next year. The balance can then be retained in the budget stabilization fund for unforeseen circumstances such as economic downturns and unanticipated expenses. Some have asked why other cities in our area aren't experiencing these budget problems, and she contends this is because, when these cities need to adjust their budgets beyond a simple transfer, they have unencumbered cash balances to look to when necessary. She urges this administration and Council to work together to build the budget stabilization fund to its maximum allowable amount of 10% of prior year's revenues or approximately 51.7 million. Let us pledge revenues received in excess of plan go into the budget stabilization fund and continue to analyze all operations for efficiency savings. She recommends this process be started by passing legislation to mandate this be done in the fourth quarter of every year. Also, most cities do not budget to receive estate taxes, let alone as revenue in the General Fund. Most cities earmark it for a special purpose. She recommends that in the future it be set aside in another fund, such as capital improvement, which may reduce the borrowing dependence as it grows. North Olmsted has a strong ability to recover, just as it did in the mid 1990s, because we are not dependent on one significant tax and we are not dependent on one significant taxpayer. We will continue to be strong as long as we rebuild our financial flexibility and operationally live within our means. Councilman McKay, chairperson of the Finance Committee: 1) The Finance Committee met on Monday, January 13. Present were committee members Kasler, Limpert, McKay; Councilpersons Dailey, Miller and Nashar; Mayor Musial, Finance Director Copier, Law Director Dubelko, Service Director Creadon, Safety Director Jesse. The following items were discussed: Ordinance 2003-2, an ordinance amending Section 1501.1901 of the city taxation code in order to reduce the tax credit for the residents of the city who earn income in another municipality from 100% to 70'/o and declaring an emergency. Due to the receipts and expenditures far 2002 not being in until January 15, this ordinance will be held in committee until such a time as Council is provided with the budget for 2003. Finance Director Copfer presented Council with a tax credit reduction analysis for their review. Resolution 2003-5, a resolution authorizing the Mayor of the City of North Olmsted to enter into an agreement with Costin + Company providing for a GAAP conversion 5