Village Manager's Report

For the August 1st, 2005 Council Meeting

The following report is intended to supplement the information related to the upcoming Village Council meeting. If you have questions or comments about these or other issues, please feel free to give me a call at (937) 767-1279 , or e-mail me at rhillard(at)yso.com.

A. Council Items:

Interim Village Manager Agreement: Enclosed is the proposed agreement for Interim Manager Services with Phil Hawkey. The highlights of the agreement include a pay increase during this interim period to $75,000 annually, and providing a retroactive salary for Mr. Hawkey during the time he was Acting Manager earlier this year. These wages are PERS eligible. The Village Solicitor, as well as the Personnel Officer and Mr. Hawkey himself reviewed the agreement.

Quarterly Budget Update/Supplemental Appropriations Ordinance: Enclosed in the packet is the quarterly budget update. From these worksheets, the Supplemental Appropriations Ordinance was prepared. The following are some of the highlights related to the ordinance. I am recommending the Council adopt the ordinance as an emergency, so the Finance Department can make the appropriate adjustments immediately. The focus of this budget is to allow for enough adjustments for the rest of the year to make the transition easier for the next administration, because of the unknowns in completing the manager selection. I appreciate the assistance given by the department supervisors in reviewing the specific activities.

General Fund Revenues: Because of a County Auditor office procedural change, a portion of the property taxes received went into the Bond Retirement Fund. The revenues are significantly higher in this fund, but lower in the property tax line item in the General Fund. Because the Transfers were already made before this new County policy was known, the result will likely provide a lower cash balance in the general fund property tax line item. The Finance Director is communicating with the County Auditor’s office to resolve the issue in the future. The Income Taxes appear to be lower than expected because certain companies have changed their withholding schedule based on estimated profits. Because of this, I am anticipating a reduction in income taxes of approximately $60,000 for the year. Permits, Fines and Cost are anticipated to be higher due to increased activity. Reimbursements represent a $29,000 increase due to an advance received by the developers for services related to the development at Birch III. Costs associated with the development are reimbursed per ordinance. Further, the Village will receive additional reimbursements from employees for health insurance, due to increases in health cost, and the percentage shared by employees.

Street Fund Revenues: The Street Fund is seeing interest income increased, and as a result of auditing requirements, the street funds are directly receiving a portion.

Parks Fund Revenues: The Parks Fund is seeing a reduction in Bryan Center rental, but an increase in train station donations due to the Village crews installing donation bricks for the Chamber of Commerce and the Chamber forwarding the donations directly to the Village.

General Fund Appropriations: The General Fund Appropriations are anticipated to increase primarily due to the need for professional services related to a variety of projects, kilowatt hour tax increases, library project inspection costs and an increase in wages for the Interim Manager and Assistant Planner during the rest of the year. The professional services, for example, involve efforts to review options for the proposed noise ordinance as well as other legislation, development costs anticipated to complete Glass Farm issues, research and legislation development on the two past annexation applications, policy manual and other personnel developments, code enforcement and a variety of other issues. The kilowatt-hour tax is paid through the administration activity and is higher than anticipated. The Library renovation project is estimated at $50,000, and will require inspections. Staff should have an idea on Monday if this estimate is accurate. The Planning activity is seeing significant increases due to the temporary realignment of the positions of the Village Planner (Interim Manager) and Assistant Village Planner. Further, inspections of Birch III are included in the budget, however, will be reimbursed.

Parks Fund Appropriations: The Parks Fund Appropriations are increased due to continued issues with the air handling system at the Bryan Center.

Electric Fund Revenue: The Electric Fund Revenues are anticipated to be higher than anticipated due to increased power costs and adder revenue as a result.

Electric Fund Appropriate: The Electric Fund Appropriations are increased due to higher wholesale power costs as a result of additional use because of the weather and the new regional transmission charge. AMP-Ohio, on behalf of the members, has appealed the issue to FERC, however, the issue probably will not be resolved for a couple years at least. In working with Courtney and Associates, we are anticipating the wholesale cost increase at around $50,000 for this year and $40,000 next year. The additional costs however, will be included in the adder for next year, so customers will see the increase at that point in time. Of course if FERC rules in favor of municipalities, we will receive a rebate. Further increases include additional kilowatt-hour tax as a result of increased power use, and increased wages for the Interim Manager and Assistant Village Planner, which are spread over the utility funds, as well.

Water Fund Revenue: The Water Fund Revenue is anticipating a reduction in water revenue of approximately $20,000. If this decrease trend continues, I would encourage the Village consider raising water rates next year. I would encourage the potential rate increase include a capital project (Walnut Street) in order to continue to make a difference in the identified water reliability projects.

Water Fund Appropriations: The Water Fund Appropriations have increased to cover the Interim Manager and Assistant Planner wages, which are spread over the utility funds, as well.

Sanitary Sewer Fund Revenue: The Sanitary Sewer Revenue is relatively stable, as a result of the rate increase implemented at the beginning of the year. However, rates should continue to be reviewed.

Sanitary Sewer Fund Appropriations: The Sanitary Sewer Appropriations have been increased to cover additional electric costs at the plant and to remove more sludge this fiscal year. Because of weather limitations last year, sludge removal was half as much as budgeted, and with new contract with the City of Xenia, the operation is more efficient this year and will allow the Village to better utilize the plant. Further, we did experience an emergency repair at the lift station, which is also included in the appropriations. Finally, the Interim Manager and Assistant Planner wages are spread over these utilities as well.

Please feel free to give me a call if you have any questions related to the information provided.

B. Agenda Planning:

Library Bids: The Village is soliciting bids for the improvements at the Library. The bids will be due August 15, 2005, and a recommendation will be presented at the September 6, 2005, Council meeting. Copies of the bid are available in the Village Planner’s Office.

Street Resurfacing Project: The bids for the street-surfacing project are now advertised, and are due September 12, 2005. The streets to be resurfaced are sections of Corry Street, Allen Street near the intersection of Livermore, and the western end of Limestone Street. The Council is scheduled to approve bids on September 19, 2005.

Fuel Purchase Bids: The bid for fuel purchase has been released and is due September 19, 2005, at 2:00pm. The bid offers a three-year contract. The Council is scheduled to review the bids on October 3, 2005. Presently, we are being served by Speedway.

C. Additional Issues:

2005 Pool Season: The last day for the pool will be Sunday, August 21, 2005. This is the weekend before school starts for the year. This is a change from the past, since we use to keep the pool open until Labor Day weekend. If individuals have suggestions for the pool, please feel free to speak with the Jen Malone, Pool Manager 767-9064, or me at 767-1279.

Noise Ordinance: The Environmental Commission is reviewing the proposed ordinance as prepared by the Village Solicitor. Further the Commission is looking at the night time limits as suggested by Antioch University. Ed Amrhein will work with the Commission on this project, as a staff resource.

Caboose Committee: Bruce Rickenbach volunteered to lead the committee. I do appreciate his leadership on this issue.

Final Thoughts…
The last reporting period included meetings with Springfield Airport Advisory Board, NMVLGA, AMP-Ohio and the Design Advisory Commission. My primary duty was to introduce Phil Hawkey as the Interim Manager and brief Phil on the issues before these groups. Further, I have been meeting with staff, preparing bid documents and job descriptions, and giving appropriate files to department supervisors to keep projects on track. We are implementing the insurance coverage, and of course worked hard to provide an updated financial document for Council consideration. This will be my last Council meeting, and I would like to thank the Village Council for the support given to me during my almost five years with the Village. We have been through much together, and I believe accomplished a lot. We have put some good practices in place that will be utilized in the future, and put a good staff in place to give it energy. To the Village and the citizens, I wish best regards and success. I have met a lot of good people, and appreciate my time knowing this community. My last day with the Village will be September 1, 2005. If you have any questions, please feel free to call me at 767-1279.