03/24/2004 Meeting Minutes - Laserfiche WebLink

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analyzing this yeazs appropriations for azeas where operating requests aze possibly higher than necessazy. 2) CAPITAL IMPROVEMENTS: The Administration has proposed borrowing $ 1, 250,000 for capital improvements for 2004. This money is comprised of the following projects: SEE THE CAPITAL IlVIPROVEMENT PROPOSAL One member of Council questioned performing work in the two developments again this year, as opposed to completing one and going as far as possible in the other. This was discussed without any immediate resolution. This borrowing in substance and purpose was discussed and Council agreed that these projects need to be addressed, however the amount of the borrowing was viewed differently by various members. Councilman Limpert suggested increasing the borrowing since the interest rates are !ow right now. My concerns were the opposite. With a no raise policy for employees this year 2. the increase in cost to the general fund neat year as a result of this borrowing the debt service that will be paid by the general fund 3. the commitment in pay increases already made with some bargaining groups for neat year and the following year, I asked for a commitment of fiscal responsibility, First, without the ability to provide any pay increases this year, it is difficult to agree to borrow 1, 250,000. That figure is further increased by a previously agreed upon amount of about $500,000 for the purchase of Fire Vehicles made earlier this year, bringing the total borrowing request to about 1.8 million. More importantly though, pay increases Gave been agreed to with some units for 2005 and 2006. The question asked is whether the budget can sustain these increases as well as the debt service on this borrowing. The Finance Director stated that this borrowing is fiscally responsible and within our means. However, when asked if the picture changed, and if the scenario was that additional pay increases become mandatory as the result of remaining contract negotiations and the resulting agreements, would the budget be able to sustain for ezample, 3% raises for 2004 and beyond as well as the debt service being proposed here. The response from the Finance Director was , in my mind, not nearly as certain and was not definitive. The decision on this borrowing remains to each Councilperson and their individual vote on the borrowing of funds In addition to the Capital improvements for which borrowing is necessary, the committee discussed other capital issues. Council was assured by the Service Director that Clague Road south of Lorain will be addressed this year.