The Return of Common Sense

FINANCIAL MATTERS

• Item One: Paying for the new rescue squad

Highland Heights Fire Chief Bill Turner waited patiently for several years before getting the green light to replace the city’s oldest rescue squad vehicle (RSV).
It’s great that the city is willing to invest in modern, well-functioning emergency equipment, and it makes financial sense, too. Because insurance companies are charged for it, the fire department’s emergency rescue service is actually a moneymaker for the city.

Mayor Scott Coleman included only part of the cost of the new RSV in his 2011 capital improvements budget. Instead of paying for it upfront, Coleman proposed using a five-year, rent-to-own arrangement – one that upped the RSV’s total cost (due to interest payments) and encumbered future capital improvement funds through 2015.

Councilman Bob Mastrangelo questioned that decision. He argued that the city had sufficient funds to buy the RSV outright and that there wasn’t a good justification for adding interest costs to the purchase price. 

So why would Coleman want to go the rent-to-own route? While Coleman claimed at the time that he wasn’t sure there was enough money in the budget to pay the full purchase price this year, it’s pretty hard to ignore the fact that Coleman used the city’s finances – including  the city’s reserve (savings/rainy day) fund balance – as a key part of his recent reelection campaign.  The rent-to-own approach reduced the impact that the RSV purchase had on the city's 2011 budget – and on the reserve fund balance.

Mastrangelo raised the financing issue again a couple of weeks ago, after the RSV was delivered and the bill came due.

During last week’s Legislative & Finance Committee (L&F) meeting, Coleman conceded that the city could afford to buy the RSV outright and that doing that will save $12,000 in interest costs and free up an additional $44,000 in capital improvement funds for each of the next four years.

No doubt that was music to Mastrangelo’s ears.

• Item Two: Insurance Costs

During the L&F meeting Finance Director Anthony Ianiro reported on the bids submitted for the city’s 2012 medical and dental coverage. It looks like the dental premiums will remain the same, but the city’s current medical insurance provider proposed a 20 percent premium increase. Ouch.

A different company (Signa) is offering a comparable medical insurance plan for only a 5 percent premium increase. Although the city is still waiting to hear from a couple more insurers, it looks like Signa’s bid might be the winner.

• Item Three: The 2012 Budget

Mayor Scott Coleman told Council last week that he had already met with his department heads, as a kickoff to the 2012 budgeting process.

While it is still too early to know what the 2012 budget will look like, it is likely to include significant capital improvement spending.

During his campaign Coleman promised that he would come up with a plan to address the city’s infastructure needs within 100 days of starting his new term. One of the most pressing needs is the Highland Road water main. The city has been on notice for several years that the water main is failing and must be replaced.

One budget category that is guaranteed to increase across the board next year: salaries. The labor contracts approved last year call for a 3 percent pay increase for union employees in 2012. Traditionally city administrators and other exempt employees receive matching pay increases.

• Item Four: Green Task Force Grant Applications

The city’s newest organization – the Highland Heights Green Task Force (GTF) – has already had a positive impact on the city. 

A few months ago the city received a grant to buy recycling bins for the Community Center, thanks to the efforts of the GTF.  

At last week’s Council meeting GTF head Judy Dearden described the latest grant that the group is pursuing. The money (a $5,000 grant from the Fiskars Corporation) would be used to enhance the city’s new green space. 

Good luck and thanks, GTF!

GetGo Update

Law Director Tim Paluf finally answered the question on many minds: when Lance Osborne’s GetGo zoning initiative petition issues will be placed on the ballot.

Osborne has been pushing to have the issues put before voters at the earliest opportunity, i.e., during the first special or primary election in 2012.

Although Paluf previously told a Sun Messenger reporter that the issues might be voted on during a spring special election, he changed his mind after looking more closely at the Highland Heights Charter. Paluf told Council that, pursuant to the Charter, Osborne’s zoning issues could only be voted on during a general or regular municipal election. The next one of those won’t be held until November 2012.

If he’s unwilling to wait that long Osborne could circulate a new petition, although he’d have to collect a lot more signatures in order to get his zoning issues on an earlier ballot. Or Osborne could bypass the Charter’s initiative petition rules entirely by convincing five Council members to put zoning issues on the ballot for him instead.

I’ve been told that, during their recent Sun Messenger endorsement interview, all of the Council-at-large candidates (except for Councilman Frank Legan, who was absent) opposed the idea of putting a mega GetGo on the Catalano’s property.

If that’s the case, the second option may be a dead end for Osborne.

To be contined ...