Norwood City Council

Council Chambers

Special Session

July 19, 2007   7:30 PM

 

 

 

A)  CALL TO ORDER

The Council for the City of Norwood met in SPECIAL session on the above date with Ms. Jane Grote presiding.  The meeting opened with a prayer and the Pledge of Allegiance.

 

B)   PRAYER

 

C)  PLEDGE OF ALLEGIANCE

 

D)  ROLL CALL

On roll call, the following members answered present: Mr. Gabbard, Mr. Sanker, Mr. Schneider, Mr. Moore, and Mr. Barlow

 

Mr. Schneider served as Clerk of Council, Pro-Tem.

 

E)   INTRODUCTORY READING OF RESOLUTION

 

A)    RESOLUTION DECLARING THE NECESSITY OF LEVYING A TAX FOR CURRENT OPERATING EXPENSES IN EXCESS OF THE TEN-MILL LIMITATION AND REQUESTING THE COUNTY AUDITOR TO CERTIFY MATTERS IN CONNECTION THEREWITH, AND DECLARING AN EMERGENCY

 

Mr. Sanker asked the Mayor for his comments on this Resolution.  The Mayor responded that there has been a lot of thought and he’s had several discussions before determining this as the best approach.  We are now doing better than we have in the past in a lot of ways.  By allowing this renewal to be placed on the ballot we can address the issues that we have heard time and time again and make some progress.  We all know that we have had tough times where the citizens of Norwood were not seeing anything more than us keeping the doors open.  I’m thankful for their patience with us.  Now I believe we are moving into a time where we can put something back, where we can purchase a fire pumper and do some much needed street repair.  Mayor Williams checked with Dusty Rhodes and got the approximate figures that this renewal would generate.  Mayor Williams insisted that we should let the residents decide what type of City they would like to become in the coming years.  If the residents feel fit to pass this renewal, the return for that money is going to be evident in the street program, a capital improvement program, and a rainy day fund.

 

Mr. Schneider commented that we are considering renewing an emergency levy that was put in place in the 1980’s when General Motors was closing.  Mr. Schneider asked the Mayor if he has looked at a replacement levy and alternate millage which would not have the emergency terminology in the levy language.

 

The Mayor confirmed and continued on to say that the replacement emergency levy is an internal incentive.  Collectively, we’ve produced and now it’s a matter of building this City and making real progress. 

 

Mr. Moore added that his original thought was that it would be better to go with a streets/capital improvement levy.  However if this was modified to be a streets levy, we would lose the personal property tax subsidy we are currently receiving from the state.  Therefore if we kept the revenue generated consistent we would hardly replace this loss of revenue.  Mr. Moore added that as long as the state is reimbursing cities for the loss of the personal property tax, then we’re cutting our throats if we don’t stay with the renewal. 

 

Mr. Sanker reminded Council that this paperwork needs to be down to the County Auditor so that they can review and we are on a deadline.  Mr. Sanker commented that this is a renewal and will maintain current taxes.  The City and State Auditor’s budgetary numbers and projections are all based upon these numbers, so without these monies that are generated from this particular 8 mill, we would be hurting and back where we were in the past.  Mr. Sanker went on to say that he hoped earnings tax and development opportunities continue to increase, but if we hit an economic downturn as we did in 2000 we need this in place and need this to build a reserve fund.

 

Mr. Schneider directed a question to the Mayor asking if it was true that we could potentially pass a 4 or 5 mill levy under the current evaluation of property by the county auditor’s office and still bring in just about the same amount as the 8 mill renewal levy.

 

The Mayor replied saying that if we run a different mileage that will raise the same amount of money, the tax burden on the property will change.  He went on to say that he had discussions with the State Auditor’s office regarding reduction factors.  This means if the assessed value of the property goes up with the renewal levy, the property owner doesn’t suffer that increase, so their tax burden remains the same.  That’s one of the reasons the Mayor liked this direction.

 

Mr. Moore explained to those watching who may be thinking about how the value of their property was raised which made their property taxes raise also.  He explained about inside mileage and how the schools get most of that.  This type of voting levy doesn’t apply to inside mileage and doesn’t cause the property taxes to increase.  Mr. Moore went on to say that the amount home owners pay is based on their homes valuation in 1987.  It’s different for commercial properties or for new developments so for instance Rookwood Exchange and Rookwood Pavilion pay property taxes on current full market value of their property.  If we were to get rid of this renewal levy and put a new one on instead that raises the same amount of money, the County Auditor is going to add up the current total value of all the property in the city and then divide the amount that citizens are going to pay for the new mileage across that amount.  Homeowners will pay more on current value than the value from 1987 so a renewal would be a cheaper way to go. 

 

Mr. Barlow asked the Mayor if $74 a half is what homeowners would pay if we did a renewal.

 

Mayor Williams confirmed – $74 on $100,000 home for a renewal levy.  If you go with a lower mileage that generates the same revenue, it could have adverse problems down the road. 

 

Mr. Schneider asked the Mayor if he thought at sometime that we could eliminate this emergency levy. 

 

The Mayor replied that we are certainly trying and trying to get caught up from the years past.  We have maintenance that needs to be done, streets that need repaired, equipment that needs to be bought, and we have neglected this as we have struggled through the years past.  This renewal with our growth rate and our businesses picking up is providing a good opportunity to use this money to help our infrastructure and to do some house cleaning.      

 

On a motion by Mr. Moore, seconded by Mr. Sanker, it was moved to hear the first Reading of the Resolution.  The following members voted YES: Mr. Gabbard, Mr. Sanker, Mr. Moore and Mr. Barlow.  The following members voted NO: Mr. Schneider

 

On a motion by Mr. Moore, seconded by Mr. Sanker, it was moved to amend the Agenda by adding Resolution E-B.  All members present voted YES.

 

As amended Council then considered the following item:

 

B)     RESOLUTION DECLARING COUNCIL’S INTENT TO ALLOCATE THE

PROCEEDS OF AN EIGHT (8) MILL RENEWAL LEVY, IF PASSED BY THE VOTERS OF THE CITY OF NORWOOD, FOR CERTAIN SPECIFIC PURPOSES

 

On a motion by Mr. Moore, seconded by Mr. Sanker, it was moved to hear the first reading of the resolution.  All members present voted YES.

 

F)   EXCUSE ABSENT MEMBERS

On a motion by Mr. Moore, seconded by Mr. Sanker, it was moved to excuse the absent members.  All members present voted YES.

 

G)  ADJOURNMENT

On a motion by Mr. Sanker, seconded by Mr. Moore, it was moved to adjourn.  All members present voted YES.

 

 

 

 

 

 

 

 

 

 

 

 

______________________________            ______________________________

J. Brian Mumper                                          Jane M. Grote

Clerk of Council                                            President of Council