FINANCE, ADMINISTRATION, SERVICE,
ENGINEERING and GORMAN FARM
COMMITTEE MEETING MINUTES
May 7, 2013
The Finance, Service, Engineering and Gorman Farm Committee met on May 7, 2013 at 5:00 pm at the Council Chambers in the Evendale Administration Building. At the meeting, were Councilmembers Albrinck, Schaefer, and Hartman. Also in attendance were Chief Korte, Chris Schuermann, Jim Bothe, James Jeffers, Jack Cameron, Mayor Apking, Andrew Brossert, Matt Grever, and Cynthia Caracci.
Evening Police Clerk
Chief Korte presented his request to convert the evening police clerk position from part time to full time. The reason for the change is the significant increase in theft offences from last year to this year. The additional clerical staff is required to meet the additional load of paper work. The Police Fire and Recreation Committee previously recommended that the position made full time. Council members Hartman, Albrinck and Schaefer concurred in the recommendation.
Finance
Cynthia Caracci presented the finance report. The earnings tax generated in April 2013 was the highest ever. The amount collected was $2,192,701.39. The tax collections are $443,386.77 ahead of last year. This month the Village has a surplus of 1,533,261.67. This year to date, the surplus is $1,514,487.76, excluding Evendale Commons TIF.
Mayor Apking noted that the Evendale Cultural Arts center is seeing an increase in use and needs additional funding. Essentially, Evendale appropriates the money to pay teachers and instructors. The fees collected from the students and others are returned to the general fund. Cynthai Caracci will present a supplemental appropriation ordinance along with a balance sheet showing the funds collected and expended when the supplemental appropriation ordinance is considered.
Andrew Brossert from Fifth Third Bank presented the options regarding the issuance of bonds for the Evendale Common TIF. Without a charter change, they will have to be Revenue Bonds. If Revenue Bonds are issued, the interest payments are much higher because there is a risk that the property tax revenue will not cover the bonds. Over the remaining 30 year life of the TIF, the projected total interest on revenue bonds is $4,906,956.60. The excess of the TIF funds remaining for Evendale to spend to maintain and advance the project are projected to be $1,839,489.94. If general obligation bonds are issued after a Charter change permitting it, the interest estimate would be reduced to $1,996,627.10 and the amount Evendale could spend to maintain and advance the project would be $5,308,589.06.
Other communities have bought their own bonds. That is because the interest on those bonds is substantially higher than that available on their investments. Sharonville recently has done this. If Evendale considers doing this, the revenue bond is estimated to pay 6.50% interest and puts more money into the Evendale general fund. The General Obligation Bond leaves more money in the restricted TIF fund that must be used to advance or advance the project.
The risk is that the TIF area property taxes become inadequate to fund the bonds. If that should happen, the Evendale general fund would have to cover the shortfall if General Obligation Bonds are issued. If Revenue Bonds are issued, the bond holders bear the risk of the TIF failing to generate adequate property tax. The added risk, should Evendale own the bonds, is that interest rates over the 30 years will rise. This would reduce the book value of the bonds below their value at the time they were issued.
It is expected that the debt coverage ratio will rise above 1.25% as soon as the Menard’s is added to the tax duplicate by the county auditor - probably this year. Evendale will be required to decide this issue within two-years of that date.
Gorman Farm
Chris Schuermann highlighted the farm report and showed pictures from the Opening Day parade in which the Farm Mules were the sixth unit. She noted that the conversion of two bays to a maintenance shop is progressing, the roof project at the alfalfa barn has started, and the new tent has been decided upon. The tent is estimated to cost about $18,000, not the $24,000 originally estimated and authorized. The application for the impact 100 grant is still pending and an on-site interview portion of the process is being scheduled in the next month. The financial results of the Farm events last weekend are not yet totaled.
Service Department
Jim Bothe and the mayor went over the approach to dead and dying ash tree removal. Several of the new street trees have died and will be replaced. The service department has completed the water truck conversion and showed the committee pictures of the final project. Using the new truck reduces the need to fill the gators around the new trees to two minutes.
Engineering
James Jeffers gave the engineering report. The status of the road projects was submitted in writing and is attached. The committee made the following recommendations regarding the roofing projects and the shelter house project. The committee recommended seeking bids on the recreation roof and HVAC replacement only. The Fire Station roofing project will be delayed until next year. The proposed roof deck at the Shelter house was eliminated because of structural issues.
The traffic light project will be programmed shortly. James will brief the committee about how it is programmed to operate in June or July.
Administration
Jack Cameron noted that the new website is up and running.
The health insurance is coming up for renewal on July 1st. As part of the process our current health insurance arrangement, Anthem ERC, the Village was presented a pre-renewal packet in March by ERC. In this packet we got to see that the loss ratio for the last 10 months was 49% which is excellent. With only January and February to include, it is expected that we will have a single digit renewal. Jack explained that the Anthem ERC program has some core requirements which are changing in 2013’s renewal. If the Council renews with Anthem ERC those changes will have to be reflected in the incentives the Village offers an employee on their cost. Horan Associates, our broker, is getting quotes from Anthem ERC as well as the other carriers to have several options. These renewals will be available
next week and the HIRT committee is going to meet on May 15th to finalize a recommendation to Council for the June meeting.
The liability insurance is coming up for renewal on July 1st. Hylant is again acting as our broker and will put the Village’s business out for bid by the end of May. The Council should see this information at their June Committee meeting.
The meeting adjourned at 7:15 pm.
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Christian J. Schaefer
Committee Chairman
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