Pickerington Area Taxpayers Alliance

August 20th Finance Minutes

Posted in: PATA
They meet again Thursday Sept 25th @ 7:30pm
100 Lockville Road - Council Chambers

A.EPA DEFA WPCLF
(1) Review and discussion of preliminary draft EPA DEFA WPCLF amortization schedule and wastewater capacity fee analysis. Mr. Kocarek he hoped at the open house held earlier today they had been able to address several misunderstandings regarding the City?’s motivation and rationale for this project. He stated we are at the point now to discuss of how to cover the costs of the project. Mr. Wright stated we were looking at two ways of increasing the water/sewer capacity fees. He stated one was based on a flat $325 increase per year, and one based on a three percent increase per year. He stated we were also looking at a difference of 150 homes per year and 200 homes per year and where that puts us, surplus wise, at the end of each year. Mr. Wright stated his feeling has been that we have looked over increasing the capacity fees for a long time and he felt it was also important to note that the capacity fees are actually what has enabled us to keep the water/sewer rates where they are for the past 13 years. Mr. Wright stated, in essence, it is the new growth that is keeping the water/sewer bills where they have been for that 13 years. Mr. Wright stated the one concern he had with having the flat fee increase per year was that it put us out of competition with the surrounding communities fairly quickly. Mr. Wright stated he did not see a problem with setting a flat rate increase for the first year and then a percentage increase annually after that time. Mrs. Fersch pointed out that we currently increase our capacity fees three percent annually. Mrs. Bushman stated she would like to see the analysis if the capacity fee base was raised by a specific amount, and then an annual increase of three percent rather than a flat increase each year. Mr. Wright stated he concurred with Mrs. Bushman and he would like to look at the assumption of raising the water and sewer capacity fees to some point, with the three percent increases, and see how that fits through the amortization. He stated we needed to make sure we are taking into account the number of homes on the sewer system, and to consider any possible commercial additions, so they can look at the complete picture of what is going on. Mr. Fox stated he agreed with that and he felt we also need to take into consideration what would happen if the 100 home limit was in effect for the next ten years. Mrs. Bushman stated she would meet with Mrs. Fersch and provide this analysis for the next meeting. Mrs. Bushman stated further she felt we need to look at the analysis because we may, for example, be able to reduce the water capacity fee and put the increase on the sewer side. She stated what matters is the total of the two figures. Mrs. Bushman further stated another possibility may be to freeze the water capacity fees so they do not have a three percent increase for something like five years, and then increase the sewer capacity fees by six percent for five years. She stated the goal is to get the revenue to increase on the side where you need it. She stated then at a certain point in time they would both balance out. Mr. Wright stated he agreed and asked Mrs. Bushman and Mrs. Fersch to provide the analysis of these items to the Committee next month. Mr. Wright stated further he felt the point that needed to be made is the City does not have the choice to default on loans. We will pay for this with new development or we will pay for it by increasing income taxes, water fees, and everything else. He stated there will be no other options because we do not have the option to default.
We have options

The most obvious option is:

DO NOT INCREASE THE CAPACITY!

The last thing we need in this city is more $hit.
malfeasance

Let?’s talk about malfeasance Mr. Wright. According to the minutes of the finance committee you are fully aware that to increase the sewer plant capacity we will either have to allow 300 plus homes into the city per year to pay the debt or you will have to raise income taxes, sewer rates or both. Not paying these debts is ?“NOT AN OPTION.?” Is that what you are saying Mr. Wright?

So to put it another way Mr. Wright, with full knowledge of what you were doing you voted to allow the city manger to place this city into financial jeopardy. Is that what you are saying Mr. Wright?

So what will it be Mr. Wright we commit the city water and sewer users to fund a new sewer expansion plant that costs them $12,000,000 plus. Now to pay for that, we must attract new homes buyers, right? The problem is if we raise the tap fees can we attract as many new homes buyers or enough new home buyers to fund this new plant? Is that what you and Bushman are saying? We thought you refused to consider the Hudson, Ohio Growth Management Plan because their moratorium/plan was based on the fact that they couldn?’t provide water and sewer services. Yet you are willing to jeopardize the future of this city and its tax payers to install a new plant that has much more capacity than needed for many years to come and along with that putting the screws to the community and the school system. Do you believe that is MALFEASANCE Mr. Wright?


By Homer
Recall Birds

You folks that were circulating reacll petitions please read what you have allowed to happen by not finishing your task. Clearly Fox and Wright are still making the decisions. The decision they are working on right now (sewer plant expansion)will cripple this community for years to come. I would adivse that you add Mike Sabatino on the recall list and continue your circulating on Parker and Wright. They know exactly what they are doing and voting only to serve the building industry at the risk of placing the citizens of Pickerington and the school district in deep trouble. Continue to circulate the recall petitions and file them after the first of the year when we have a new Law Director.
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