COMMON COUNCIL
APRIL 6, 2009 7:00 P.M.
THE PLEDGE OF ALLEGIANCE WAS GIVEN BY ALL IN ATTENDANCE.
PRAYER WAS GIVEN BY PASTOR ADRIAN CURTIS, TRINITY UNITED METHODIST CHURCH.
PRESIDENT YORK ASKED FOR A MOMENT OF SILENT PRAYER FOR MAX SUTHERLAND, A FORMER COUNCILMAN, WHO PASSED AWAY MARCH 31, 2009.
ROLL CALL:
SANDY YORK PRESENT
ANGIE GOODMAN PRESENT
JAMES KIDD ABSENT
MARY MALONE PRESENT
MARK KOGER PRESENT
VAUGHN REID PRESENT
RICHARD HAHN ABSENT`
MINUTES OF THE FORMER MEETING WERE APPROVED.
RESOLUTION-
AUTHORIZING APPLICATION SUBMISSION AND LOCAL MATCH WAS READ IN FULL BY SANDY YORK.
PRESIDENT YORK MOVED TO PASS THIS RESOLUTION. COUNCILADY GOODMAN: SECOND
DISCUSSION: COUNCILMAN KOGER ASKED IF ALL THE LOCAL MATCH WAS COMING FROM THE REDEVELOPMENT COMMISSION.
PRESIDENT YORK SAID YES.
ROLL CALL VOTE: FIVE VOTES AYE. PASSED AND ORDERED.
ORDINANCE #3566-
AN AMENDED ORDINANCE OF THE CITY OF NEW CASTLE AUTHORIZING THE ISSUANCE OF GENERAL REVENUE BONDS FOR THE PURPOSE OF PROVIDING FUNDS TO PAY THE COST OF ROAD IMPROVEMENTS, FUNDING A DEBT SERVICE RESERVE FOR SAID BONDS, AND FUNDING THE PAYMENT OF A CITY DEBT, PROVIDING FOR THE SAFEGUARDING OF THE INTERESTS OF THE OWNERS OF SAID BONDS, OTHER MATTERS CONNECTED THEREWITH AND REPEALING ORDINANCES INCONSISTENT HEREWITH WAS READ BY TITLE ONLY ON THIRD AND FINAL READING BY SANDY YORK.
PRESIDENT YORK SAID THAT THIS ORDINANCE HAD BEEN AMENDED TO READ
$860,000.00.
PRESIDENT YORK MOVED TO PASS THIS ORDINANCE. COUNCILADY MALONE: SECOND.
DISCUSSION:
COUNCILMAN REID PASSED OUT CIRCUIT BREAKER LEGISLATION DATED MARCH 23, 2009, ESTIMATING CERTAIN LEGISLATION TAX CREDITS. HE SAID THAT THIS WAS THE ESTIMATED AMOUNT THAT THE CITY'S PROPERTY TAX LEVY WILL DECREASE IN 2010 AND 2011, DUE TO THE CURRENT CHANGES IN THE CIRCUIT BREAKER LAW AND THIS WILL SHOW THE IMPACT ON WHAT THE CITY WILL HAVE IN IT'S GENERAL FUND IN WHICH PART OF THAT FUNDS PAY FOR SOME OF THE OPERATIONS AT THE STREET DEPARTMENT.
COUNCILMAN REID EXPLAINED THE LAW AND FINDINGS OF THE CIRCUIT BREAKER CREDITS AND THE 15 AND 20 YEAR AMORTIZATION, WHICH ARE INCLUDED. HE ALSO EXPLAINED A SPREAD SHEET ANALYSIS OF TRENDS FOR 2006, 2007 AND 2008 FOR VARIOUS BUDGET ITEMS FOR THE CITY'S BUDGET FUNDS. HE SAID, FOR THE BOND, THE MONEY WOULD COME FROM THE CCD AND LR&S FUNDS. HE SAID, BETWEEN 2006 AND 2008, THE LR&S FUND HAS HAD A 72.95% DECREASE IN IT'S ENDING BALANCE AND THE CCD FUND HAS HAD A 46.25 % ENDING BALANCE BETWEEN 2006 AND 2008.
COUNCILMAN REID SAID THAT LR&S HAS HAD AN INCREASE IN EXPENDITURES 45.45% BETWEEN 2006 AND 2008, AND CCD HAS HAD AN INCREASE 19.21% BETWEEN 2006 AND 2008. HE SAID HE BELIEVED THAT PART OF THE LR&S INCREASE WAS DUE TO THE INCREASE OF FUEL, GRAVEL AND ASPHALT. HE SAID THAT LR&S ACTUALLY HAD A 3.7% INCREASE IN REVENUE BETWEEN 2006 AND 2008 WHICH OFF SET THE DECREASE IN ENDING BALANCE AND INCREASE IN EXPENDITURES. HE SAID THAT CCD DECREASE OF 57.89% IN its REVENUE BETWEEN 2006 AND 2008. HE SAID LAST YEAR; THE CITY OF NEW CASTLE LOOKS LIKE IT SPENT APPROXIMATELY $149,727.17 IN CERTAIN AREA OF PAVING. THERE WAS AN ADDITIONAL PAVING PROJECT ON CENTRAL AVENUE, FROM SOUTH MAIN TO SOUTH 12TH STS., WHICH COST ABOUT $3,890.15.
HE SAID HE WAS BRINGING THIS UP BECAUSE WITH THE DISCUSSION WITH ICE- MILLER AND CROWE- HORWATH, THE PROJECTIONS THAT THEY SAW WERE THAT THE BOND MONEY WAS GOING TO COME OUT OF LR&S AND CCD AND HE SAID HE SAW A TREND OF INCREASING OF EXPENDITURES AND DECREASING REVENUES. HE SAID HE WAS CONCERNED AND WONDERED IF THE CITY COULD AFFORD TO BOND ANYTHING, ESPECIALLY AFTER SEEING THE NEW REVENUES COMING FROM THE STATE LEGISLATIVE SERVICES OFFICE.
COUNCILADY GOODMAN ASKED MAYOR SMALL IF HE HAD A MEETING WITH THE EXPERTS WHO ARE IN CHARGE OF THE FINANCIAL ASPECT OF THIS AS FOR DOING SOME PROJECTIONS TO SEE WHEN BONDING CAME DUE AND HOW MUCH THE PAYMENTS WOULD BE BASED UPON THE ORIGINAL BOND, NOT THE AMENDED ONE.
MAYOR SMALL SAID HE HAD NO IDEA WHAT IS GOING TO BE THIS COMING YEAR, IT DEPENDS ON GASOLINE PURCHASES, AUTOMOBILE PURCHASES, AND THEY GAVE US ESTIMATES TO FOLLOW.
COUNCILMAN REID SAID ON THE 20 YEAR AMOUNT ON THE BOND WAS GOING TO BE ABOUT $146,042 IN 2025 TO SOMEWHERE AROUND $141,000 THE FIRST YEAR. 2010 WAS GOING TO BE A SHORTENED PAYMENT. THE 15 YEAR AMOUNT WILL BE SHORT THE FIRST YEAR $80,000. THEN BALANCE BETWEEN $167,500 TO $171,732. A YEAR TO BE SPLIT BETWEEN CCD AND LR&S.
PRESIDENT YORK SAID THAT CCD IS IN THE CIRCUIT BREAKER BUT LR&S IS NOT.
COUNCILMAN KOGER SAID A THANK YOU TO COUNCILMAN REID FOR THE TIME AND EFFORT THAT WAS PUT INTO THIS. HE SAID IT MADE IT A LOT CLEARER TO COUNCIL AND THE PUBLIC. HE SAID THERE WAS A DISCUSSION WHEN THEY AMENDED THIS ORDINANCE TO $860,000.00. HE SAID THERE WAS A LOT OF TIME PUT INTO THAT AMENDMENT AND AS A COUNCIL, THEY VOTED FOR THAT, 6 TO 1 VOTES. HE SAID COUNCILMAN REID HAS BROUGHT UP GREAT POINTS OF EMPHASIS. LACK OF FUNDING IS GOING TO BE FOR YEARS TO COME. THERE IS NO WAY THAT THE CITY CAN SIT HERE AND TELL US THAT THE ADMINISTRATION CAN TELL US THAT THERE IS GOING TO BE MONEY THERE TO PAVE OR PATCH A ROAD. THIS IS GOING TO PUT SUCH A FINANCIAL BURDEN ON THIS CITY TO DO THE $1,700,000... SO, WE AS A COUNCIL, PASS THAT $860,000. AND IF YOU READ THE MINUTES, IT DOES NOT SAY THAT THE EAST SIDE BY-PASS IS A DEAD ISSUE. IT NEVER SAID THAT. IN THE MINUTES IT SAYS, THAT WE WILL LOOK AT THAT IN THE NEXT TWO YEARS AND HOPEFULLY, WE CAN PASS IT THEN. IF THE MONEY IS THERE, WONDERFUL. IF IT IS NOT, THEN IT IS NOT. NOBODY CAN SHOW US THAT THE MONEY IS THERE. NOBODY CAN PROVE IT TO US THAT THE MONEY IS THERE. ALL WE CAN GO BY IS WHAT IS ON PAPER, PERIOD, AND WHAT WE KNOW THAT IS COMING IN AND GOING OUT.
MAYOR SMALL SAID THAT THE MONEY IS THERE. WHEN YOU HAVE LIMITED MONEY COMING IN, YOU DON'T SPEND GOING OUT WITHOUT EXPENDITURES GOING OUT, THERE SHOULD BE ENOUGH MONEY TO PAY FOR THAT BOND ISSUE.
COUNCILMAN KOGER SAID THE KEY WORD, "SHOULD, BUT NOT." THAT IS WHY THE AMENDMENT CAME TO THE $860,000.00.
MAYOR SMALL SAID THEY WERE NOT OPPOSING THE $860,000.00.
COUNCILMAN KOGER SAID, YES YOU DID OPPOSE THE $860,000.00.
MAYOR SMALL SAID THAT IS WHY WE DIDN'T MEET BECAUSE WE WERE SATISFIED, CONCERNED OF COURSE, BUT THE CONCERN WAS NOT THAT WE WOULDN'T HAVE ENOUGH MONEY TO PAY THE BOND, THE CONCERN WAS ABOUT IF WE WOULD HAVE ENOUGH MONEY TO PAY FOR SALT AND PAVING. LOOK AT OUR STREETS RIGHT NOW, THEY ARE IN PRETTY GOOD SHAPE COMPARED TO OTHER CITIES THIS SIZE.
COUNCILADY GOODMAN SAID SHE VOTED AGAINST THE AMENDMENT BECAUSE HER UNDERSTANDING WAS WITH THE ORIGINAL AMOUNT 1.7 MILLION THAT WAS THE MAXIMUM THAT WE WERE BONDING. THAT WAS NOT SAYING THAT WE WERE GOING TO GO AFTER THIS MONEY. HER CONCERN WAS, WITH THE LOWER COST WAS, WHAT IF THE MONEY RUNS OUT AND WE FIND OURSELVES IN A SITUATION WHERE WE CAN'T, YOU KNOW THERE ISN'T ANY MONEY IN THE CCD OR LR&S. THAT MONEY WOULD BE THERE AND AVAILABLE TO US BY LOWERING THE COST SIGNIFICANTLY. SHE SAID IN HER WAY OF THINKING, WE ARE CUTTING OFF OUR NOSES TO SPITE OUR FACES. SO, KNOWING THAT, WAS THERE ANY OF THE EXPERTS THAT WERE HERE, WE HAVE TO BOND THAT MUCH. SHE SAID WITH THE AMENDMENT, THAT IS WHY SHE VOTED IT DOWN. AS FOR THE ACTUAL ORDINANCE, PEOPLE IN HER WARD REALLY WANT GARNER STREET. THEY REALLY BELIEVE IT WILL IMPROVE NEIGHBORHOODS GOING THROUGH THERE, THE EMS PROFESSIONALS, THIS WILL HELP US AND THIS IS SOMETHING POSITIVE. SHE SAID SHE WAS NOT COMFORTABLE WITH THE ACTUAL AMOUNT. DID WE AT THE LAST MEETING TALK ABOUT GOING BACK TO THE ORIGINAL AMOUNT? NOW I'M HEARING SOMETHING DIFFERENT.
PRESIDENT YORK SAID THE AMENDMENT WAS MADE AND SHE BELIEVED THAT IS WHAT THEY WILL STICK WITH. THIS AMENDMENT WILL DO GARNER STREET AND THE BEGINNING OF EAST SIDE PROJECT.
MAYOR SMALL ASKED IF THE ORDINANCE WAS NOT PASSED TONIGHT, WOULD WE LOOSE OUR TWO MILLION DOLLAR GRANT.
ATTORNEY COPENHAVER SAID HE COULD NOT ANSWER THAT TOTALLY. HE SAID WE ARE RUNNING VERY CLOSE TO THE DEAD LINE WHERE YOU HAVE TO HAVE THE MATCH READY TO GO.
PUBLIC DISCUSSION:
FORMER MAYOR SHERMAN BOLES, 2813 CHERRYWOOD AVE., SAID IF THERE ARE TWO FUNDS IN THIS ENTIRE CITY THAT MONEY SHOULDN'T BE TAKEN OUT OF, IT'S THE LR&S AND THE CCD FUNDS. HE SAID THAT MONEY SHOULD BE USED FOR EMERGENCY EQUIPMENT. HE SAID HE AGREED THAT THIS WAS A GOOD PROJECT AND GAVE CREDIT TO MAYOR TOM NIPP. HE SAID THE LR&S, THERE WAS A MEETING AND THE CITY ACCOUNTANT STATED THAT ALL THE LR&S MONEY IS BEING USED NOW. HE USED THE COUNTY AS AN EXAMPLE. WHEN THEY BUILT THE JUSTICE CENTER, THE ROADS WENT TO POT SO THE BONDS COULD BE PAID. LOOK FOR THE MONEY SOME PLACE ELSE, NOT THE CCD OR LR&S FUNDS.
MAYOR SMALL SAID THE AMBULANCES WERE BOUGHT RECENTLY OUT OF INSURANCE FUNDS. FIRE EQUIPMENT IS PAID FOR FROM THE TOWNSHIP AND WE JUST BOUGHT 3 USED POLICE CARS SO WE DO HAVE ALTERNATE SOURCES
THAN THE CCD OR LR&S FUNDS.
RON HALE, 2305 OHIO STREET, WANTED TO KNOW WHY BUILD A ROAD ON THE EAST SIDE THAT IS NOT GOING TO DO ANY GOOD. WE NEED TO REPAIR THE ROADS IN THE CITY.
NORMA DISHMAN, SUPPORTS THE GARNER STREET PROJECT ALL THE WAY. SHE FEELS THAT THIS WILL HELP SAVE LIVES.
ROLL CALL VOTE: FOUR VOTES AYE. ONE VOTE: NAY (REID) PASSED AND ORDERED.
PRESIDENT YORK OPENED THE FLOOR FOR DISCUSSION TO TAKE THIS BOND FOR 15 OR 20 YEARS.
COUNCILMAN REID SAID THAT HIS UNDERSTANDING IS THAT PAVING LASTS 3 TO 5 YEARS NOW ON THE STREETS. THE OTHER THOUGHT IS A COUPLE OF YEARS AGO; AN ORDINANCE WAS PASSED DURING MAYOR NIPP'S ADMINISTRATION, EXTENDING THE METALDYNE TIFF DISTRICT, A LITTLE SLIVER, TO COVER DOWNTOWN. THE SMALL PARK ON BROAD STREET. WE COULD AS A COUNCIL, PASS ANOTHER ORDINANCE TO RUN A SLIVER FROM THE METALDYNE TIFF DISTRICT TO THE EAST SIDE AND CREATE THAT AS A TIFF DISTRICT AND TRY TO GET SOME OF THAT MONEY TO HELP OFF SET THE EAST SIDE PROJECT. MAKE IT LESS NECESSARY TO BOND OR TO BOND LESS.
COUNCILADY GOODMAN SAID THAT THE 20 YEARS WOULD INSURE US THAT THERE WOULD BE MONEY FROM THE ORIGINAL BOND IS LOWERED WE WOULD HAVE MORE MONEY TO WORK WITH.
PRESIDENT YORK MADE THE MOTION TO BOND THIS FOR 20 YEARS. COUNCILMAN KOGER: SECOND.
COUNCILADY GOODMAN SAID SHE WAS CURIOUS WHY THE AMENDMENT WAS INSPIRED BY COUNCILMAN REID AND COUNCILMAN HAHN, WHY DID YOU VOTE AGAINST THE AMENDMENT?
COUNCILMAN REID SAID HE VOTED AGAINST THE AMENDMENT, AS HE STATED IN THE NEWSPAPER, HE THOUGHT BONDING AT ALL IS A BAD IDEA. HOWEVER, COUNCILMAN HAHN WANTED TO PROVIDE A ONE HUNDRED AND SIXTY THOUSAND DOLLAR AMENDMENT. HE TRIED TWICE AND WAS CUT OFF. ON THE THIRD TRY, HE SAID HE OFFERED TO BLURT IT OUT?
HE SAID, COUNCILMAN HAHN SAID "GO FOR IT." SO%u2026%u2026..COUNCILMAN REID SAID HE DID THAT. HE SAID THAT THE $860,000.00 IDEA DID NOT ORIGINATE WITH HIM. HE SAID HE KNOWS HE GOT THE BLAME FOR IT AT THE LAST MEETING. IT WAS SOMETHING THAT CAME UP AND WAS THE RIGHT THING TO DO. HE SAID IT DID NOT ORIGINATE WITH HIM.
COUNCILMAN KOGER SAID THE $860,000.00 WAS A GO, BECAUSE IF IT WASN'T A GO, THE I.7 WAS GOING TO BE GONE TOTALLY. THAT IS WHAT WE WERE DISCUSSING. HE SAID HE DIDN'T WANT TO SEE THE 1.7 TOTALLY GONE. WE WERE TOLD SO MANY TIMES, IN OUR MEETINGS, THAT THIS MONEY DOESN'T COME AROUND OFTEN. WE WERE UNDER A DEAD LINE AND HE DIDN'T WANT TO LOOSE THIS MONEY. HE SAID HE WANTED TO SEE THE 860 WITH A POSSIBILITY COME BACK IN 18 MONTHS OR SO AND LOOK INTO THE EAST SIDE. HE SAID HE DID NOT WANT TO SEE THIS DIE.
COUNCILMAN REID SAID HE WOULD LOVE TO SEE THE CITY HAVE THE CASH AND SO OUT AND THIS NOT BE AN ISSUE. HE SAID IF THE CITY HAD THE MONEY, HE WOULD HAVE BEEN WILLING BUT IN GOOD CONSCIENCE, SET HERE AND VOTE FOR A 1.7 MILLION DOLLAR BOND WHEN I DON'T THINK THE CITY HAS THE MONEY, EITHER THE CASH FLOW OR THE ACTUAL FUNDS TO PAY FOR IT. THEREFORE, HE SAID HE WAS WILLING TO VOTE FOR AN AMENDMENT TO GET IT REDUCED, BUT THAT HE STILL FELT LIKE THE CITY CAN'T AFFORD IT. THIS IS A BAD FINANCIAL DECISION ON THE PART OF THE CITY. NOW TIME WILL TELL.
COUNCILMAN KOGER SAID COUNCILMAN REID WAS RIGHT AND NOW IT IS UP TO THE ADMINISTRATION AND THE NEXT ADMINISTRATION TO FOLLOW THROUGH WITH IT. WE PASSED IT NOW IT IS IN THEIR POCKET. THEY ARE GOING TO HAVE TO MAKE THE CUTS.
ROLL CALL VOTE: FOUR AYES; ONE ABSTAIN(REID) APPROVED 20 YEAR BOND ISSUE.
ORDINANCE #3567-
AN AMENDED ORDINANCE OF THE CITY OF NEW CASTLE APPROPRIATING THE PROCEEDS OF THE GENERAL REVENUE BONDS WAS READ ON THIRD READING BY SANDY YORK BY TITLE ONLY.
PRESIDENT YORK MOVED TO PASS THIS ORDINANCE COUNCILADY GOODMAN: SECOND
ROLL CALL VOTE: FOUR VOTES AYE; ONE VOTE ABSTAIN (REID) PASSED AND ORDERED.
COMMITTEE REPORTS: NONE
PUBLIC:
TOM ALEXANDER WAS AGAINST THE EXTENDING OF GARNER STREET. HE THOUGHT IS WAS A WASTE OF MONEY AND DIDN'T THINK THE TIME SAVING COULD SAVE A LIFE, ESPECIALLY IF THERE WAS A TRAIN ON THE TRACKS.
PRESIDENT YORK MOVED FOR ADJOURNMENT
COUNCILADY GOODMAN: SECOND
