Wednesday, March 25, 2009

Budget Projections for 2009

Following a presentation by the Finance Director, City council passed the proposed 2009 budget without any signficant substantive discussion.

But first, a couple of informational tidbits from last night's council meeting:

1. The Fire Department will be conducting a CPR class on April 4th, from 9 to 2. It is open to the public. Contact them for more information.

2. A Senior Health and Wellness Fair will be held at the community center on May 13th, from 1 to 3 pm.

The Budget

As adopted, the budget projects a 3.6 % decline in revenue (with income and property tax collections staying the same as last year), $ 11 million in expenditures (which matches last year's projected expenditures, but is a 5.5 % increase over 2008 actual spending), a $ 283,000 surplus (revenue over expenditures). and a reserve of approximately $ 4 million for the general fund.

All of these figures are subject to change, and whether we actually end the fiscal year in the black will depend on things such as whether the Finance Director has correctly estimated how much revenue the city will take in, whether additional expense items are tacked onto the budget (the proposed expansion/renovation of the old pool house, for example), and whether any emergencies have to be addressed (for example, last year a major structural problem in the community center was discovered and had to be repaired).

The projected $ 283,000 surplus is not very large for a city with a $ 11 million budget, and it could disappear pretty quickly as the year unfolds, which would put the city into deficit spending.

Although it was stated by several contributors to the city's recent quaterly newsletter that the city has taken on no new debt in the last several years, that statement is incorrect.

The Finance Director reported that the city obtained a $ 700.000 zero interest loan to finance the reconstruction of the Highland and Bishop Road intersection. The city will have to pay $ 38,000 a year over the next 20 years on that loan, beginning in either July 2009 or January 2010.

Other items of interest discussed at the council meeting:

  • The church at the corner of Ford and Ridgebury.

An area dentist appeared before Planning and Zoning (P&Z) to discuss whether the church property could be rezoned for business use. The rezoning would be necessary for the building to be used as a dental office.

I have also heard that another individual has inquired as to whether a funeral home could be placed on the property.

The discussion is merely preliminary at this point, but it raises a couple of issues.

Since the church is located in a residential area and is surrounded by homes, it would constitute spot rezoning for a single piece of property. And, of course, there is no going back once the rezoning occurs. It means that the property could be used for any sort of business activity from thereon out.

On the other hand, the property has always had a unique zoning designation, it has traditionally been used for nonresidential purposes, and it is accessible from a main through-street.

Interestingly, a pastor from the South Euclid Church of God in Christ appeared at the council meeting and stated that he wanted to talk to Mr. Pilla about the church building on the city hall property. He said he heard that building was in bad shape, but that he wanted to look at it.

I wonder if he will be encouraged to look at the church at Ford and Ridgebury instead since, unlike the church building on the city hall property, the Ridgebury church building is in good physical condition and is currently for sale.

Speaking of the church building on the city hall property, Mrs. Murphy asked that it be added as a discussion item for the next Committee of the Whole Meeting, 7 pm on April 7th.

  • Cutter Oil and its permit to drill on property N of Wilson Mills/W of Miner Road

Cutter Oil obtained a drilling permit for a very irregularly shaped 20 acre parcel, which includes some Miner Road properties, some Wilson Mills Properties, and some Lander Road Extension properties.

Because the area is a residential area, there is no currently existing driveway/road accessing the designated drilling site. And there is also an old capped, but unplugged well somewhere in the area---its exact location is currently unknown.

Cutter Oil has proposed putting in a 10 foot wide gravel driveway that passes right next to the home at 756 Miner Road and whose width extends right up to and/or crosses the property line of the home next door. The proposed driveway travels west, to the back of 756 Miner, and then swings around south, crossing the property line for a home facing on Wilson Mills Road.

The state fire code requires 20 foot wide drives of substantial construction to allow fire trucks, police cars, and rescue vehicles to access the site.

I hear that Cutter Oil is claiming that they don't have to comply with Highland Heights zoning laws (property line set back and driveway requirements) or state law. They claim that the Ohio Dept. of Natural Resources (ODNR) has total control of everything pertaining to drilling and that they can put in anything they want, as long as ODNR approves it.

I dont believe that any court has said that, but that is how all of the drilling companies choose to interpret the state drilling laws.

There will be a meeting at City Hall at 9:30 am on Monday, March 30th to discuss the issue further. Mr. Austin, the city's acting Building Department Head, has asked Tim Paluf, the city's law director, to be present. That meeting is open to the public.