Council OKs aquatics center measure

DAVE MOSIER/independent editor

Voters will have likely have two ballot issues to decide following decisions made Monday night by Van Wert City Council.

City Council members unanimously voted to pass the first of two measures needed to place a $3 million bond issue on the November ballot for the construction of a city aquatic center. The legislation was passed on second and final reading after statutory rules requiring three readings of an ordinance were suspended to ensure the legislation was ready for submission to the Van Wert County Board of Elections by early August.

Council also introduced two ordinances that would place an issue seeking extension of City Council terms from two to four years. City Council unanimously approved two pieces of legislation that would place issues on the ballot asking voters to approve extending the terms of council members and council president to four years. The ballot issue would also seek to have staggered terms, with several council members initially elected to two-year terms to ensure that all Council members would not come up for re-election at the same time after that.

The legislation will be read three times prior to passage.

Also Monday, City Council prepared legislation authorizing the annexation into the city of 1.5 acres of property on Liberty-Union Road owned by the operators of the Kennedy-Kuhn implement dealership. The business plans to expand following annexation.

Legislation approving a new cell phone tower contract was also prepared by a unanimous vote of City Council. The new contract, with Hot Corner LLC, would provide the city with an additional $10,000 a year annually over the $12,000 currently received in rental fees for a tower located north of K&L Ready Mix. Moreover, the company would give the city an additional $50,000 if the contract is approved quickly.

Safety-Service Director Jay Fleming suggested that the additional money received from a new cell phone tower lease contract be placed in a fund for city parks department capital projects.

The city is the beneficiary of intense competition among companies for tower space. “Whoever owns more towers, makes more money,” Fleming told City Council as a reason for the increased rental fees.

Council members also discussed the 2014 tax budget during a meeting of the Finance Committee held prior to Council’s regular meeting.

City Auditor Martha Balyeat led a discussion on whether the .22 percent income tax fund revenues should – or could – be used to fund fire and police operations this year, if projected revenues are received.

Estimates prepared by Balyeat show the city with a carryover of $258,000 at the end of 2014, which would be below the 10-percent reserve mandated by City Council.

Balyeat question, though, whether the ballot issue approving use of up to two-thirds of .22-percent tax revenues for police and fire operations also applies to the need for a reserve fund. If not, the city would have to live with a lower carryover into 2015. Currently, it appears as if the city will have a $1.35 million carryover from 2013, Balyeat noted.

Some positives gleaned from the tax budget, which is basically a financial planning tool and not as detailed or accurate as city appropriations measures, include the fact that the city will be paying off the debt incurred for the reservoir extension, which would provide an additional $200,000 to be used for other purposes.

The city auditor also reported on the city’s current financial situation during the regular City Council meeting, noting that the city received $355,000 more in revenues this year than in 2012, but noted that all but $50,000 of that money was one-time funding. More importantly, city departments have spent $623,000 less than the city has received in revenues, meaning the city has been frugal in managing its money.

Meanwhile, although income tax revenues are up 1.5 percent this year over 2012, Balyeat said she was concerned that tax revenues from withholding had decreased. “This are people who receive paychecks,” she said of the withholding decrease.

Councilman At-Large Stan Agler also reminded Council of an upcoming discussion on the United Nations’ Agenda 21 initiative slated for Monday, June 24.