LORAIN CITY COUNCIL. Committee Agenda Wednesday, March 23, 5:30 p.m.
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1 LORAIN CITY COUNCIL Committee Agenda Wednesday, March 23, 5:30 p.m. FINANCE & CLAIMS & ALL COUNCIL COMMITTEE, Mr. Koziura, Chairman Revenue enhancement proposals and/or expenditure reductions for the 2016 budget. (Several items are listed below for the purpose of discussion.) a. Administration's submission of a summary of various scenarios pertaining to the 2016 budget. b. Proposed ordinance amending Ord. No , Section 1 - Tax Credit. c. Proposed Ord. adopting a mandatory retirement age for City of Lorain Police/Fire Department members,excluding the Police/Fire Chiefs. d. Appropriation (2016 Permanent Budget Summary)
2 CITY OF LORAIN Committee Meetings a. Meeting Date: 03/23/2016 Submitted by: Breanna Dull, Deputy Clerk PURPOSE AND BACKGROUND This summary was submitted by the administration today (3/23/16) at approximately 2:45 pm detailing various possibilities pertaining to budgetary matters. RECOMMENDATION TO COUNCIL: Discussion Correspondence Attachments
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17 CITY OF LORAIN Committee Meetings b. Meeting Date: 03/23/2016 Submitted by: Michele Beko AGENDA ITEM DESCRIPTION OR LEGISLATION TITLE: AN ORDINANCE AMENDING ORDINANCE #178-10, SECTION I, TAX CREDIT, OF THE CITY OF LORAIN INCOME TAX REGULATIONS AND DECLARING AN EMERGENCY PURPOSE AND BACKGROUND: TO PROVIDE FOR INCOME TAX REVENUE INCREASES TO THE CITY OF LORAIN GENERAL FUND RECOMMENDATION TO COUNCIL: CONSIDERATION FOR PASSAGE Fiscal Impact Funds Available in Current Year Budget (Y/N): N Estimated Cost : 2.7 MILLION TO THE GENERAL FUND Estimated Completion Date: List Source of Funding: INCOME TAX Fund & Expense Account Number: VARIOUS Financing Requirements (Bonds, Loans, Lease, etc.): The tax credit will bring in $2,776,800 in 2016 and $1,388,391 in rev ordinance Attachments
18 ORDINANCE NO. AN ORDINANCE AMENDING ORDINANCE #178-10, SECTION I, TAX CREDIT, OF THE CITY OF LORAIN INCOME TAX REGULATIONS AND DECLARING AN EMERGENCY WHEREAS, the local government funding that the State of Ohio provides to the City of Lorain has given us $2,500, less in revenue for 2016; and WHEREAS, the shutdown/idling of the United States Steel Company s operations as well as Republic Steel Company s operations have caused a loss in excess of $1,000, tax dollars revenue to the City of Lorain; and WHEREAS, the RTI reclamation site the City of Lorain operates is feeling the same effects from lower material values causing a revenue loss of $800, to the City of Lorain; and WHEREAS, the City of Lorain gives a full tax credit against any income tax liability owed to the City of Lorain equal to the total amount of tax paid to another city for its residents, up to the current tax rate of the City; and WHEREAS, the City of Lorain is without sufficient revenue to provide adequate and appropriate services to its residents; and WHEREAS, the lack of sufficient income tax revenues create a risk that the City of Lorain, Ohio will be unable to provide sufficient police and fire staffing levels resulting in real threats to the health, welfare and safety of the citizens who live, work and visit the City; and WHEREAS, the need to pass a balanced budget is absolutely necessary per State Law and must be in place by March 31, 2016 to continue City operations. NOW, THEREFORE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF LORAIN, COUNTY OF LORAIN AND STATE OF OHIO. SECTION I. Section 1. Tax Credit, which currently reads as follows: THAT A RESIDENT OF THE CITY OF LORAIN, OHIO WHO IS SUBJECT TO THE MUNICIPAL INCOME TAX ORDINANCES AND REGULATIONS OF THE CITY OF LORAIN SHALL BE ALLOWED A FULL CREDIT AGAINST ANY INCOME TAX LIABILITY OWED TO THE CITY OF LORAIN EQUAL TO THE TOTAL AMOUNT OF INCOME TAXES PAID TO ANOTHER MUNCIPALITY OR POLITICAL SUBDIVISION. THIS TAX CREDIT WILL NOT EXCEED THE CURRENT TAX RATE OF THE CITY OF LORAIN. **Is now hereby amended to read as follows: Section 1. Tax Credit THAT A RESIDENT OF THE CITY OF LORAIN, OHIO WHO IS SUBJECT TO THE MUNICIPAL INCOME TAX ORDINANCES AND REGULATIONS OF THE CITY OF LORAIN SHALL BE ALLOWED
19 A 100% (One-hundred percent) CREDIT FOR THE PERIOD COMMENCING JANUARY 1, 2016 THROUGH MARCH 31, 2016 AGAINST ANY INCOME TAX LIABILITY OWED TO THE CITY OF LORAIN EQUAL TO THE TOTAL AMOUNT OF INCOME TAXES PAID TO ANOTHER MUNICIPALITY OR POLITICAL SUBDIVISION; A 33.3% (Thirty-three and three tenths percent) CREDIT FOR THE PERIOD OF TIME COMMENCING APRIL 1, 2016 THROUGH DECEMBER 31, 2016 AGAINST ANY INCOME TAX LIABILITY OWED TO THE CITY OF LORAIN EQUAL TO THE TOTAL AMOUNT OF INCOME TAXES PAID TO ANOTHER MUNICIPALITY OR POLITICAL SUBDIVISION; A CREDIT OF 75% (Seventy-five percent) FOR THE 2017 CALENDAR YEAR AGAINST ANY INCOME TAX LIABILITY OWED TO THE CITY OF LORAIN EQUAL TO THE TOTAL AMOUNT OF INCOME TAXES PAID TO ANOTHER MUNICIPALITY OR POLITICAL SUBDIVISION; A CREDIT OF 100% (One-hundred percent) FOR THE 2018 CALENDAR YEAR AND THEREAFER AGAINST ANY INCOME TAX LIABILITY OWED TO THE CITY OF LORAIN EQUAL TO THE TOTAL AMOUNT OF INCOME TAXES PAID TO ANOTHER MUNICIPALITY OR POLITICAL SUBDIVISION. THE ABOVE TAX CREDITS WILL NOT EXCEED THE CURRENT TAX RATE OF THE CITY OF LORAIN. SECTION II. SECTION III. That it is found and determined that all formal actions of this Council concerning and relating to the adoption of this Ordinance were adopted in an open meeting of this Council, and that all deliberations of this Council and of any of its committees that resulted in such formal actions, were in meetings open to the public, in compliance with all legal requirements, including Ohio Revised Code That this ordinance is hereby declared to be an emergency, the nature of which is the immediate need to provide the resources necessary to provide adequate safety personnel and services for the protection of property and people within the City of Lorain, all in order to preserve the health, welfare and safety of the citizens of the City of Lorain. Therefore, this Ordinance shall take effect immediately upon its passage and approval by the Mayor, providing it receives the statutory requirements for passage, otherwise it shall take effect and be in force from and after the earliest period allowed by law. PASSED:, 2016 PRESIDENT OF COUNCIL ATTEST:, CLERK MAYOR APPROVED:, 2016
20 CITY OF LORAIN Committee Meetings c. Meeting Date: 03/23/2016 Submitted by: Michele Beko AGENDA ITEM DESCRIPTION OR LEGISLATION TITLE: AN ORDINANCE ADOPTING A RETIREMENT PLAN FOR MEMBERS OF THE LORAIN FIRE DEPARTMENT AND LORAIN POLICE DEPARTMENT, EXCLUDING THE LORAIN FIRE CHIEF AND THE LORAIN POLICE CHIEF AND DECLARING AN EMERGENCY PURPOSE AND BACKGROUND: TO ADOPT A MANDATORY RETIREMENT AGE FOR POLICE AND FIRE DEPT MEMBERS THEREBY REDUCING EXPOSURE TO THE GENERAL FUND BY APPROXIMATELY $150, RECOMMENDATION TO COUNCIL: CONSIDERATION FOR PASSAGE Fiscal Impact Funds Available in Current Year Budget (Y/N): N Estimated Cost : 150, Estimated Completion Date: List Source of Funding: GENERAL FUND Fund & Expense Account Number: GENERAL FUND Financing Requirements (Bonds, Loans, Lease, etc.): LEGISLATION Attachments
21 ORDINANCE NO. AN ORDINANCE ADOPTING A RETIREMENT PLAN FOR MEMBERS OF THE LORAIN FIRE DEPARTMENT AND LORAIN POLICE DEPARTMENT, EXCLUDING THE LORAIN FIRE CHIEF AND THE LORAIN POLICE CHIEF, AND DECLARING AN EMERGENCY WHEREAS, Lorain City Council has determined that it would be in the best interest of the City of Lorain, its residents and businesses to adopt a mandatory retirement age for members of the Lorain Fire Department and Lorain Police Department; and WHEREAS, Lorain City Council has been informed that the Collective Bargaining agreements currently in effect between the City of Lorain and those unions representing bargaining unit members of the Lorain Fire Department and the Lorain Police Department do not address the matter of mandatory retirement age; and WHEREAS, pursuant to the provisions of 29 U.S. Code 623 (ADEA), a political subdivision which adopts a mandatory retirement plan for firefighters and law enforcement officers at age fifty-five (55) or older does not act in violation of the provisions of the ADEA. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF LORAIN, STATE OF OHIO: SECTION I. For purposes of this ordinance, members of the Lorain Fire Department are deemed to be any employee of the City of Lorain originally appointed to the position in the Lorain Fire Department of Firefighter or its equivalent entry level appointment position designation. SECTION II. For purposes of this ordinance, members of the Lorain Police Department are deemed to be any employee of the City of Lorain originally appointed to the position of Patrolman in the Lorain Police Department or its equivalent entry level appointment position designation. SECTION III. Members of the Lorain Fire Department and Lorain Police Department who have attained the age of fifty-seven (57) years as of the effective date of this ordinance, or who attain the age of fifty-seven (57) years after the effective date of this ordinance shall be honorably retired by order of the Lorain Safety/Service Director. All members of the Lorain Police and Lorain Fire Departments retired under the provisions of this ordinance shall be entitled to such pensions as are provided by the rules of their respective pension boards.
22 SECTION IV. The retirement plan for members of the Lorain Fire Department and Lorain Police Department which is the subject of this ordinance shall not apply to positions of the Lorain Fire Chief or the Lorain Police Chief. SECTION V. That it is hereby found and determined that all formal actions of this Council concerning and relating to the passage of this ordinance were adopted in an open meeting of this Council, and that all deliberations of this Council and of any of its committees that resulted in such formal actions were in meetings open to the public in compliance with all legal requirements, including Section of the Ohio Revised Code. SECTION VI. That this ordinance is hereby declared to be an emergency measure, the nature of the emergency being the immediate need to establish a mandatory retirement age for members of the Lorain Police Department and Lorain Fire Department to provide for the protection of the health, welfare and safety of the employees of the police and fire departments and the citizens of the City of Lorain. Therefore, this ordinance shall take effect immediately upon its passage and approval by the Mayor providing it receives the statutory requirements for passage otherwise it shall take effect and be in force from and after the earliest period allowed by law. PASSED:, 2016 ATTEST:, CLERK PRESIDENT OF COUNCIL MAYOR APPROVED:, 2016
23 CITY OF LORAIN Committee Meetings d. Meeting Date: 03/23/2016 Submitted by: Karen Shawver AGENDA ITEM DESCRIPTION OR LEGISLATION TITLE: 2016 Budget Appropriations preliminary totals for discussion at Finance & Claims Committee PURPOSE AND BACKGROUND: To provide funding for 2016 expenditures RECOMMENDATION TO COUNCIL: Refer matter to Finance & Claims Committee for immediate discussion. Budget must be passed before April 1, Fiscal Impact Funds Available in Current Year Budget (Y/N): n Estimated Cost : Estimated Completion Date: List Source of Funding: various Fund & Expense Account Number: various Financing Requirements (Bonds, Loans, Lease, etc.): 2016 Budget Appropriation Ordinance Attachments
24 ORDINANCE NO. AN ORDINANCE APPROPRIATING MONEY FOR CURRENT EXPENSES AND OTHER EXPENDITURES OF THE CITY OF LORAIN, STATE OF OHIO BEGINNING JANUARY 1, 2016 AND ENDING DECEMBER 31, 2016 AND DECLARING AN EMERGENCY. WHERAS, Ohio Revised Code Section (A) provides that the taxing authority of each subdivision may pass a temporary appropriation measure for meeting the ordinary expenses of the taxing unit until no later than the first day of April of the current year if it desires to postpone the passage of the annual appropriation measure until an annual certificate is received based on actual balances. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF LORAIN, STATE OF OHIO: SECTION I. That to provide for current expenses and other expenditures in the City of Lorain, State of Ohio, for the period beginning January 1, 2016, and ending December 31, 2013 the following amounts are hereby appropriated and set aside, by department, in the following funds for the purpose hereinafter designated: General Fund $31,448,452 Heritage TIF $ 171,830 Streets $ 5,933,327 Permissive License $ 696,500 Health Services $ 908,095 Municipal Court Computer $ 128,484 Court Computer $ 41,928 Municipal Court Security $ 233,352 Municipal Court Probation $ 151,287 Municipal Court Operations $ 143,734 CDBG Block Grant $ 4,328,614 Business Development Revolving Loan $ 1,101,000 Rental Rehab $ 6,200 UDAG Revolving Loan $ 295,806 EDA Planning $ 270, Rehab $ 203,783 Title IX EDA Loan Repay $ 1,600, Loan Repay $ 301,000 Title IX EDA Business $ 1,512,389 Neighborhood Stabilization $ 186,811 Habitat Conservation $ 88,154 HUD Lead Hazard $ 5,286 Economic Development $ 212,000 Block Grant Rehab Revolving Loan $ 150,120 HOME $ 1,545,267 Police Levy $ 2,837,093 Police Special Revenue $ 963,009 Law Enforcement $ 250,000 Indigent Drivers $ 25,000 Police Pension $ 1,598,409 Fire Pension $ 1,471,367 Mandatory Drug $ 8,000 Parkland $ 3,103 Continued
25 Continued: Compensated Absences $ 80,550 G.O. Bond Retirement $ 5,904,201 S.A. Bond Retirement $ 153,519 Capital Improvements $ 81,860 General Sewer $ 3,013,338 Municipal Court Improvements $ 124,494 Water Works $16,318,193 Water Pollution Control $31,313,703 WPC Construction $ 134,682 Water & Sewer Trust $ 1,000 Garage $ 1,455,053 Hospitalization $ 6,819,253 Trust & Agency $ 6,600,000 SECTION II. That this Ordinance is passed by virtue of the provisions of of the Ohio Revised Code, all provisions of which have been complied with. SECTION III. It is found and determined that all formal actions of this Council concerning and relating to the passage of this Ordinance were adopted in an open meeting of this Council and that all deliberations of this Council and any of its committees that resulted in such formal action were in meetings open to the public and in compliance with all legal requirements, including , Ohio Revised Code. SECTION IV. That this Ordinance is hereby declared to be an emergency, the nature of which is the immediate need to provide funding for necessary services and provide for payment to vendors. Therefore, this ordinance shall take effect immediately upon its passage and approval by the Mayor provided it receives the statutory requirements for passage, otherwise it shall take effect and be in force from and after the earliest period allowed by law. PASSED:, 2016 PRESIDENT OF COUNCIL ATTEST:, CLERK OF COUNCIL APPROVED:, 2016 MAYOR
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