Pickerington Area Taxpayers Alliance

Where or what is the financial plan for the next 5, 10, 20 years? Wasn't that demanded of the schools? This Week's paper quotes ''Even that won't set the city coffers overflowing, Hansley cautioned.'' If that is in fact correct, is 2% enough to fund the Capital Improvements Plan? If it is not enough, should the increase not be 2.25% or 2.5%? Or are these numbers, even if needed, just not voter friendly enough? If 2% is too much, should it be 1.5% or 1.75%? So my first question, what and where is the financial plan?

Is this a band aid and we'll be looking at another increase soon? Some cities have a 1.8 rate%. Why 2% on the nose? Why not 2.2% or a number that will bring in what is NEEDED?

What study has been done? Is it available to post on this site. This site has room on Our Pages to post this study, doesn't it? What projections for revenue, residential and commercial, have been made? Residential is slow now and forecasts predict a two year slow down. That can still be projected conservatively. Commercial has been developing steadily in the city for the last 10 years. I am sure these dollars can be forecast also. Are these forecasts available to post?

Giving a tax credit to those who work out of town and make those who live and work here pay a higher rate pits neighbor against neighbor. This is not conducive for business growth. Come work here, but don't live here. Is this because the percentages to get this increase passed are stacked against the citizens who live and work here?

Is the 2% number just a shot in the dark to come in line with Canal Winchester tax rate because the JEDD discusions are rearing their head again? This is no reason to raise taxes to 2%.

What cuts have been made? A hiring freeze is not a cut in my opinion. Please expand on this. Thanks you.

I read the council minute somewhat frequently, so I don't feel the need to attend every meeting. I have attended some.

A neighbor once said to me like this. Here's my homework. My church and my wife, my kids school work, my kids sports and other events, take care of the house, pay my bills and the salries of those who should be stewards of our tax dollars. Sell me on the fact council is being that steward.

Rest assured that if this posting is attacked by Councilman Fix, I will close my open mind and campaign against this increase. If it was mandatory that all of council had to post here or somewhere, you might see a different outlook. Those with cool heads would stick to the issues, address the issues and sort through the personal attacks. The history of this site shows that rational posters have more credibility. What's wrong with council using this site for council peoples rational responses?



By My homework is my family first

some answers

I believe that those that demand a five, ten or fifteen year financial plan for the schools or the city are out of touch with the realities of the two government entities.

The state requires the schools to do a five year financial forecast. In addition the schools now with the state funding are required to present a ten year master plan (capital improvements). However these so called plans are subject to review and amendments. There is just so much that the school can control and the rest if left up to the economy and the ever changing educational needs of the community.

The city has a capital improvement plan that is revised every year during the budget time in the fall. Normally this plan places priorities on projects that the city staff deems necessary and then tries to find funding. Then over all the city has a Master plan. This plan outlines priorities for the city and the type of policies the city plans to follow over the next few years. We did a major revision of the Master Plan in 2005. Clearly the current CIP will not meet its goals in the next five years because of funding issues and the slowing housing market.

To illustrate how the housing slump has effected the city you must look at the money the city was receiving from impact fees to pay debt service for the police station and the Diley Road widening. With a projection of 175 home being built that generated $185,000 to pay down the debt service for the police station. In 2007 the number of houses sold in the city dropped to a little over 100. I understand that number is less than 50 for 2008. Likewise the debt payment for the Diley road loans came due April 1st 2008. The city had enough money socked away from impact fees to pay that first payment of around $500,000. In 2009, the city will not even come close to having enough impact fee money to pay the debt service for Diley Road.

The second issue we should realize is that the city?’s short fall is in the general fund and that fund covers the police department, parks and rec., streets and the general government. The projects and charges for water and sewer money are in good financial shape and these funds ,by law, can?’t be used for general fund projects and expenses.

Since the financial future of the city is based on projections and revenues that are tied to the general economy it makes it almost impossible to predict the future and how much revenues to expect in any given year. Normally the swings in revenues to the city don?’t vary too much but when the economy does take a dive the city leaders find themselves scrabbling to cover the expenses.

I can?’t say how the council reach the 2% figure, but I can state how I reached that conclusion. I looked at the debt service and we are falling short in a couple of areas. First the Diley road widening will not have enough funds next year to pay the debt payment from the impact fees. That amounts to around $600,000. Can?’t give an exact figure because of variable rate loans. The second debt service issue is the police station debt and that variable rate payment will come in around $330,000. Here again the city can?’t count on the $185,000 input from the impact fees.

By Ted Hackworth

some answers continued

The third debt service is the three remaining TIFs the city has. Right now the city is making some of those debt service payments out of the general fund. Those payments will vary greatly until they expire in 2011. At that time the city must either find another way to finance them or pay them off by taking out a note.

The next big issue is the police operating budget, clearly we are subsidizing the police levy from the general fund. The police levy brings in around $1.3 million each year and that dollar amount stays flat over the years. The city transfers a little over $2 Million to supplement this police levy. The small remaining amount of revenues coming to the police department comes from fines and drug seizure monies.

The problem with the police budget has been that it has been increasing at a rate nearly twice that of the general fund revenues. Granted those increases have been directly linked to the increase of commercial development up along route 256. In recent years the crime rates have leveled some and hopefully these increases will flatten out over the next few years.

The city employees at least two financial consultants to advise staff and council of its financial well being. So if we want to balance the budget and generate enough revenues to meet our current financial obligations we must first address the debt service. Clearly with the slower growth (lack of impact fees) we must find new money for the $600,000 debt service for Diley Road and another $330,000 for the debt service payments for the police station.

In addition to the debt service we didn?’t budget any money for the repaving of our sub-division streets. That normally would have come in around $300,000.

Using my logic and increasing the city income taxes to the 2% level and doing a 100% credit that will raise around $1.7 Million in additional revenues for the city. If you add up the two debt services ($600,000 and the $330,000) that puts the initial need at $930,000. Then add on the $300,000 for street paving and that is around $1.3 million.

Also don?’t forget the annually raises (4% ) to the police and staff and that pretty much takes care of the money generated from an increase to 2% income tax.

If you look at the financial future of the city this will provide enough funds to survive the economy down turn and get us to the next few years where some of these debt obligations will be paid off. Clearly the city has started down a path of commercial development and if that can generate 2% from every new employee that is hired here in the city I think we will cover most of our future expenses and debt service. The sewer plant is being bid out this week and it will provide the last part of the needed infrastructure to make commercial development within our city possible.

I think most on council are reluctant to speak publicly about the credit and what the final request will be. I am sure they want to be positive and select the right credit prior to placing this on the ballot. It will probably be their hardest decision this term.


By Ted Hackworth

Answers

I've started a new blog that I hopefully can maintain better than an entire site like I was trying to before.

I've tackled the questions you pose there if you care to read them.

http://pickerington.wordpress.com/

Thanks - Brian

By Brian Wisniewski