MINUTES OF THE REGULAR MEETING
MASSILLON CITY COUNCIL
HELD, TUESDAY, JANUARY 2, 2007

COUNCIL PRESIDENT GAMBER I d like to welcome all of you to Massillon City Council for Tuesday, January 2, 2007. We have in attendance with us this evening: Mayor Cicchinelli, Safety Service Director Loudiana, Law Director Stergios, Engineer Dylewski and Recreation Director Ramier Martin. On the wall to your left are agendas for anyone who wishes to follow the meeting. Also under item #5 on the agenda is where the public can speak on any item that appears on the agenda and then under item #17 is where the public can speak on any item that does not appear on the agenda. I d also like to remind anyone with a cell phone please turn it off or turn it very far down.

1. ROLL CALL

Roll call for the evening found the following Council Members present: Tim Bryan, Kathy Catazaro-Perry, Jayne Ferrero, Chuck Maier, Ron Mang, Paul Manson, Dave McCune, Donnie Peters and Tony Townsend.

Thus giving a roll call vote of 9 present.

2. INVOCATION

COUNCILMAN MAIER Yes, I would like to introduce Colt Brakefield, if he’d step up to the microphone over here. Colt’s a 12 year Massillon Middle School student and he’s in boy scouts working on his civic merit badge and he is a resident of my ward. I’ve asked him to come and lead us in the invocation and the pledge of allegiance.

3. PLEDGE OF ALLEGIANCE

COLT BRAKEFIELD Led those in attendance in the Pledge of Allegiance.

COUNCIL PRESIDENT GAMBER I mentioned to Councilman Bryan earlier that my voice may go out on us half way through in that case we’ll have him come forward as President Pro Tem. I also apologize I guess my eyes are bad too; I don’t wear these as often as I should.

4. READING OF THE JOURNAL

COUNCIL PRESIDENT GAMBER Madame Clerk are the minutes of the previous meeting transcribed and open for public viewing (THEY ARE) Are there any additions or corrections to the minutes. If not the minutes stand approved as written.

5. REMARKS OF DELEGATIONS AND CITIZENS TO MATTERS ON THE AGENDA

6. INTRODUCTION OF ORDINANCES AND RESOLUTIONS

ORDINANCE NO. 1 2007 BY: COMMUNITY DEVELOPMENT COMMITTEE

COUNCILMAN MANG Earlier this evening I received a phone call from Debbie Ferrante who represents the Perciballi’s. Perciballis’ are the people who asking for the condominium rezoning up on Valerie and Hankins Road. They wish to have their petition withdrawn and for that reason I will be asking council I’m asking that we remove Ordinance No. 1 – 2007 from the agenda. The reason being that in the future these individuals would like to ask for rezoning again in this year other than what they’ve properly have it wouldn’t deter them by bringing up for a vote and we voted no then the rezoning would have to wait for another year. I’m not saying that they’re going to ask for any type of rezoning, but to my knowledge I think it’s going to be single family homes. But that is the reason for asking for Ordinance No. 1 – 2007 be withdrawn from the agenda.

COUNCIL PRESIDENT GAMBER In consultation with the law director the chairman is pulling the ordinance before any consideration we don’t need a motion or a vote for that we just we’ll strike it from our agenda and not consider it.

ORDINANCE NO. 1 – 2007 WAS WITHDRAWN FROM THE AGENDA.

ORDINANCE NO. 2 2007 BY: COMMUNITY DEVELOPMENT COMMITTEE

COUNCILMAN MANG Council is quite aware of this piece of legislation. The City’s Planning Commission approved the rezoning request and this was part of the Cottrill annexation also of 76 acres. Presently or prior to the rezoning or annexation it was in Tuscarawas Township which had no zoning. The request here is to bring the property on Kenyon Avenue and south of Wooster Street into compliance with the city’s zoning. The request here is to make it A-2 General Agricultural District this will require three readings and a public hearing. Madame Clerk what date do we have a public hearing? (Monday, February 5th at 7:25pm). February 5th at 7:25pm. This will be a first reading.

ORDINANCE NO. 2 – 2007 WAS GIVEN FIRST READING.

ORDINANCE NO. 3 2007 BY: ENVIRONMENTAL COMMITTEE

COUNCILMAN MANSON It’s very routine as the clerk read it’s an area located on the west side of Indian River Road SW and north of Massillon Marketplace. It’s a request of vacating existing storm and sanitary sewer easements and to dedicate new relocated sewer easements on the same property. If you look at your map you can see how where the old ones were and where the new ones are and some of it actually overlaps one another. So unless there’s any questions I will be moving to waive the rules.

COUNCILMAN MANSON moved for suspension of the rules and passage, seconded by Councilwoman Ferrero.

The rules were suspended by a roll call vote of 9 yes.

ORDINANCE NO. 3 – 2007 WAS PASSED BY A ROLL CALL VOTE OF 9 YES.

ORDINANCE NO. 4 2007 BY: PARKS AND RECREATION COMMITTEE

COUNCILMAN BRYAN The Parks and Rec. Department asked their board to approve these rate changes for 2007. It’s the first time since the original rates were set up for the rec. center that they’ve been adjusted. They are not large increases for instance a three month membership for a Massillon resident it goes up by $7.00 and for a annual renewal for a for instance for a senior adult age 55 or older goes up by $5.00. Also increased will be the rental fees for the pavilions which will go from $25.00 to $30.00 for a resident and the enclosed pavilions from $65.00 to $80.00 for a resident. If there’s any questions I’ll attempt to answer them Mr. Martin is here because Kenn Keminski asked to be here in case any of you had any questions. So he’ll be here also available for questions.

COUNCILMAN MANG Yes, I noticed that there’s been a change in the age; individual adult is 19 to 59 and the senior adult is age 60. Prior to that we had senior adult at age 55. Is that a typo in this that I have?

COUNCILMAN BRYAN I’ll let Ramier speak to that because I wasn’t at the meeting. Would you come up to the…

RECREATION DIRECTOR RAMIER MARTIN – Your question was about the senior age rate change. After doing a study of similar rec. centers on fees most use age of 60. When opened up to the rec. center we used 55 on that so it was increase on that. So its not a typo it is 65, but any member who was a current member at 55 will be grandfathered in at that they can still get that senior rate.

COUNCILMAN MANG Okay, its just for a new member then. (New member, correct) All present members are grandfathered by age prior to this year.

RECREATION DIRECTOR RAMIER MARTIN – Correct, if they have a current membership.

COUNCILMAN BRYAN But at that age, Ron, most of us are grandfathered.

COUNCILMAN BRYAN moved for suspension of the rules and passage, seconded by Councilman Maier.

The rules were suspended by a roll call vote of 9 yes.

ORDINANCE NO. 4 – 2007 WAS PASSED BY A ROLL CALL VOTE OF 9 YES.

ORDINANCE NO. 5 2007 BY: STREETS, HIGHWAYS, TRAFFIC AND SAFETY

COUNCILMAN PETERS Yes, we discussed this last Tuesday at the work session. Basically what it is doing is we’re changing a previous ordinance because we’re cutting off the Wales Road part of this ordinance because that’s going to be a separate project. If anyone has any questions our city engineer Keith Dywelski is here he can answer any questions if there any.

COUNCILMAN PETERS moved for suspension of the rules and passage, seconded by Councilman Townsend.

The rules were suspended by a roll call vote of 9 yes.

ORDINANCE NO. 5 – 2007 WAS PASSED BY A ROLL CALL VOTE OF 9 YES.

ORDINANCE NO. 6 2007 BY: FINANCE COMMITTEE

COUNCILWOMAN CATAZARO-PERRY Ordinance No. 6 in section one, we are going to appropriate from the Muni Motor Vehicle License Fund $162,548.00 to an account entitled resurfacing SR 241 also known as South Erie Street. Section two, we’re going to appropriate from the Economic Development Fund $100,000.00 to an account entitled services and contracts. These dollars $100,000.00 is needed for the economic development grant for Polymer Packaging that we approved August 22, 2006. The money is now in fund for the grant.

COUNCILWOMAN CATAZARO-PERRY moved for suspension of the rules and passage, seconded by Councilman Peters.

The rules were suspended by a roll call vote of 9 yes.

ORDINANCE NO. 6 – 2007 WAS PASSED BY A ROLL CALL VOTE OF 9 YES.

ORDINANCE NO. 7 2007 BY: FINANCE COMMITTEE

COUNCILWOMAN CATAZARO-PERRY Ordinance No. 7 – 2007, section one, we are going to repeal Ordinance No. 164 – 2006 and in section two, we’re going to enact a new section 13 which is going to state that we are going to put 95% of our monies into the general fund and 5% shall be deposited into the capital improvement. This is dollars generated from income tax. This is something that the auditor and I and the finance committee has reviewed and we recommend that it be 95/5 for the year 2007.

COUNCILWOMAN CATAZARO-PERRY moved for suspension of the rules and passage, seconded by Councilman Bryan.

The rules were suspended by a roll call vote of 8 yes.

ORDINANCE NO. 7 – 2007 WAS PASSED BY A ROLL CALL VOTE OF 9 YES.

ORDINANCE NO. 8 2007 BY: FINANCE COMMITTEE

COUNCILWOMAN CATAZARO-PERRY Before we begin talking about the budget I would like to bring up our auditor Mr. Hamit. He has requested three changes that all of you have received and three appropriate pages that you were passed that were passed out this evening and he’s going to address those changes for you.

AUDITOR HAMIT – The changes, the first one is on page 8 under 1206 Muni Motor Vehicle License Fund. There was a $150,000.00 in the budget for supplies, materials and postage. But earlier in the ordinance that you just passed that money was to be utilized for the South Erie repaving at this time. That would leave anymore monies out of capital improvement for doing the streets. So that line item was zeroed out so back in the totals pages then changes it by $150,000.00 minus it was $41 million its now $40,930,735 on page 16. Then on 17 1206 in that fund that reads across 1206 that was zeroed out and that would change again that total to $40,930,735. Then on page 18 in section four, there was $5,000.00 that listed there for the state hospital endowment fund. That no longer is utilized at this time. If there’s any questions I’ll see what I can do for you or get somebody that knows something.

COUNCILWOMAN CATAZARO-PERRY Mr. Hamit, while you’re there you and I discussed today the carryover. Could you please inform city council of the carryover for this year?

AUDITOR HAMIT – Okay, as of close of business today with liquidation of some purchase orders that Anita called around and got. We’re up to $303,884.12 which we’ve had larger carryovers, but here in the immediate future that’s a pretty good carryover at this point. With council changing the split and doing other things in the last quarter we were able to…so that could be basically subtracted off of any shortage that was projected. We’re looking better; my office is smiling a little more. We’re not of the woods, we’ve got a ways to go yet, but we’re looking better.

COUNCILWOMAN CATAZARO-PERRY It has been a challenge this year to evaluate the budget we received it on December 4th it is also a challenge to approve the budget this year. The Mayor hasn’t had a chance to comment on the budget and I did not want to bring this up for a vote until he had a chance to do that. So if I could bring the Mayor up and have him comment on the budget that we’re going to be reviewing and hopefully approving this evening.

MAYOR CICCHINELLI – When reviewing city budgets I think you’ve heard now many times that we deal with estimated revenues when we talk about filling in the various parts of our budget. If you keep that always in the back of your mind I think you’re better off big picture you’re better off to remember that when we talk about these numbers especially earlier on in the year that these numbers are based on estimated revenues as the year progresses and that’s why you see changes made within the budgetary process. Some of those numbers change and some maybe parts of the budget that have been zeroed out start seeing dollars put in those accounts. I want to show something that I think and I’m not sure how many of the newer council members and we do relatively have a new council have attended these seminars. This is from the Ohio Municipal League and this was a seminar class call it what you wish on municipal budgeting. So if any of you when you first came on council went to this I’m sure this is familiar to you. If you didn’t then I think I’d advise you to sign up and attend one of these. In it one of the first pages it sort of gives you a budget calendar for cities and villages with dates on the left hand side. Anyone that wants a copy of this we’re more than happy to supply you with a copy of it. But it reviews the entire year from January thru December on what can take place. Now keep in mind this is just a sketch again, it’s an overview on what they recommend cities and villages do. And of course, seeing that there’s a largest municipal organization in the state they have a pretty good knowledge of what cities both large, medium size and small and villages do. At the end, under December it says “revision of tax budget before end of the year” I bring that up because I know certain members of this distinguished body would like to see a budget in some form in October. Please keep in mind that we attempted that a couple of years ago and we succeeded in doing that giving to this body a budget within those monthly guidelines. This is not a criticism of council, but the budget was eventually passed in late December and if you remember again budgets are based on estimated revenue. It’s going to be extremely difficult to get you a budget in October when dollars especially near the end of the year in the last quarter of the year come in quite regularly. Because keep in mind in the budgetary process you need to know what your total intake of revenue is for the year that you’re talking about in order to project what you’re going to have the following year to run the city. Well, if you’re talking September or October to get you a budget you still have a few months left to get the revenue in. I mean we can do something like that if there is, if the need is so strong in this body that we get you something, but it’s not going to be the numbers that you’re going to end up with at the end of the year because by then or close to the end of the year you pretty much know what you’re going to have. In this study also I just want to I don’t want necessarily bore you with this but I think its important that you get an indication of what we’ve been doing in preparing budgets. In one of the pages on Municipal Budgeting In Ohio a guidebook for elected officials it says and I quote “the budget process often becomes an exercise in muddling through to meet the legal prescriptions and deadlines the various budget forms are filled in with numbers based on those of the previous year and little consideration is given to the future impact of present spending patterns”. Then in another page where they tell you expert best guess technique is the title of this. “A common technique used by small cities which we are one and villages is the empirical judgment method also known as the best guess or expert forecast. This method relies upon the knowledge possessed by the individual making the forecast generally such information is gained through experience successful expert forecasters of those who know their own revenue systems thoroughly and also where to go for additional information”. The important of this section is when they say best guess because again its based on estimated revenues. Our 2007 budget reflects the revenues that the auditor’s office has given as far as the revenue they think will be available for us to run the city here in ’07. It does include the 4% raises that were negotitated by our unions and that’s reflected in the line items for the salary accounts. What isn’t included and what’s making the headlines in some of our news media sources is the zeroing out allegedly zeroing out of comp time and overtime. The reason I say allegedly this is the first budget that was prepared that had comp time and overtime as a separate line item within the budget. In previous years what we’ve done is we combined all of that in the salary accounts knowing that’s the largest percentage of revenue that we have to come up with. So we’ve combined all that the auditor asked to separate it out one of the staff members of the auditor asked. I really don’t have any problem with it, but when you did that it drew more attention to it. In previous years, it was just all combined in the salary accounts and as was customary back then in this process in order to meet revenue projections why are you going to cut? You’re going to cut out of the line items in the budget that you’re going to have to basically find and that’s in the salary accounts. So I think you have to remember that this is a new experience as far as putting it into budget separate. Also, I think it’s a better way when you zero it out it’s a better way to work with our department heads to make sure that their functioning in the proper way of keeping in regards to our budget in keeping those specific departments in line. Not that they are reckless in their spending and if we put any dollar amounts in those accounts that they going to rush out try to spend those dollars. But I think it’s a more conservative approach to zero that out and then as needed fill those gaps. I mean that’s our philosophy administratively. It also gives the department heads an opportunity to help control spending and that’s another reason why its important we feel to zero that part out. Hence, they’re doing the job that you want them to do. If you want them to take a more active role and they’ve done very well I think it’s a better way maybe give them a more active role. Another thing to remember as far as this budget again, I’m going to continue to pound away at estimated revenues until we all get on the same page here. I think that’s something you’re going to have to come to grips with when you’re talking about budget. The growth projections of this budget in income tax for 2007 is 0%; the auditor’s office has projected that we will not have any income tax growth in 2007. So the budget is based on 0% growth in income tax collections. It’s probably a conservative approach in dealing it, because if you look at recent history in the last couple of years been an increase. Last year, ’06 our income tax collections went up around 3% the estimate from ’05 going into ’06 is that we would have a 2% growth in income tax collections. Well, its actually grown another percent in reality. Again, that helped in the carryover, but keep in mind estimated everything is estimated. I understand in reviewing the ordinance that the committee the finance committee would like to change some procedures I only wish that the discussions of these changes, proposed changes in procedures were held with the administration before we read about them or saw them within the ordinance. I guess it’s an oh been there, done that as far as the budget commission and the reviewing of purchase orders. There were probably 10, 12 years where we took the extremely conservative approach and we went and we decided to have this committee meet regularly and we took every request and we discussed it and we actually discussed it thoroughly and if we signed off on it then it went through and if we didn’t then it was sent back to the department. We can do that again, again, I don’t have any opposition to that I think if you want to have that kind of scrutiny with the budget I support the chairperson and the members of the committee that propose it we’ve done that before. Where I beg the differ with you a little bit is saying specifically that I have to be at every meeting and that’s why we requested of the chairperson that you put “Mayor or designee” and I think the auditor and I can speak for him same thing that you have “Auditor or designee”. That way if I have other things if there’s other meetings at least my office will be represented at these meetings. I think that’s the fairest thing to do I don’t think it should be an enforced situation passed in an ordinance number one. Number two, I’m not a lawyer, but I don’t think there’s any enforcement agency that’s going I mean if you pass it what does that mean? If I don’t attend what are the consequences just being up front with you. I don’t think you have that enforceable right to tell the executive branch of government they have to be at meetings. But in this New Year, again, we want to work together through this process to get our city through this budgetary process. What I don’t want is what I consider micromanaging of departments by legislators and I don’t think that has any place in this discussion. Once you start demanding forms to be filled out without previously coming to the administration and asking that and saying “maybe is there a better way of doing this”. I mean I don’t think department heads and honestly and I was a legislator for 14 years and I don’t think department heads need to have 10 bosses. Department heads have one boss ultimately and that’s the way government is set up and I respect the three branches of government and how they work. It’s not I’m certainly not after 30 plus years on any type of power trip, but I do think government only operates best when the three branches of government work together and each keep in mind what their major responsibilities are and have been. So I support you on this budget commission group, but I think you need to water down the demand that the mayor has to be there and the auditor has to be there. I want to get someone involved in our administration in the budgetary process that I think we all will be happy to get involved that become involved. That’s Rick Gatien does sort of a multitude a couple of different things for us and the citizens of Massillon primarily working with the civil service area. You know something civil service commission is important and they’re a smooth operation in that department right now and I’m very pleased with that. But Rick brings a wealth of knowledge having served as budget director for the City of Canton for many years. So we’re going to utilize that individual and his knowledge and see that’s going to be probably my representative in some situations because I think it’s important to get as many different approaches to the budget and different concepts and ideas in budgets and I think he would be perfect. You all know that we have to work together on these kinds of things especially the budget. But I think I just want you to keep in mind going into 2006 if you go back to the first print out the cash report that you got in January of 2006 carryover was about $51,000.00 the auditor just reported the carr over is $304,000.00 going from the end of ’06 into the beginning of ’07. So I think that shows a positive trend and I’m not a type of person that says the sky is falling. But I think we have to watch the budget we have to watch our spending like any other business as each individual families have to do in this community have to do. But I do think that we need to work together to accomplish that goal and I’m willing again to do my part. I’ll take questions.

COUNCILMAN MCCUNE – I appreciate you taking the time to explain to us your thought process and for some of us new (inaudible) the way its laid out in the Ohio Municipal Leagues’ booklet. I don’t think its any secret to anyone on this council or anyone in the administration that I’ve had serious reservations about a budget with projected short falls of $600,000.00 or better. I’ve spent the past couple of weeks as I talked to you the other night pouring through the budget really couldn’t find a whole lot of fat in there. I think the budget; the department heads have done a good job putting the budget together. With what Bill brought to us tonight with the $300,000.00 that we’re going to have that we didn’t project I feel a little bit better. But I guess my question is if we get towards second half of the year and Bill’s projections are flat line right off where do we go from there?

MAYOR CICCHINELLI – Well, again, you have to adjust accordingly. I am not nor would I ever say publicly because I don’t believe its going to happen mention the word layoffs. That is the worst thing that could happen to the employee sector of our city because then you become nervous. That’s not even on the page that’s not even on the back page. The reason that we experienced that once we know how it feels and that’s the worst thing that I ever did as mayor of the city how I felt afterwards. Because you affect so many different people when that takes place and that is the last thing we wanted to do, but we had to bite the bullet and we did that. Thank goodness with the assistance of council we got through all that. I don’t want to see that repeated and I’m also of the firm belief that that’s not the case here. We aren’t look at that, but who is going to stand here or sit there and predict what the future holds. If we have a round of closings in our industrial sector that we had in ’01 and ’02 where we had no alternatives and we got smacked pretty quickly, pretty aggressively by plant closings we had no alternatives. That was the last resort well I think in order to specifically to answer your question we need to always find additional sources of revenue. I think that has to take place short of an income tax increase which I am not advocating and I don’t think anyone is advocating at this particular time then that means we have to do other things if you buy into the idea of economic development and what its about. That’s the head of the train that’s the engine that drives economic growth which drives additional revenues. It’s important to pick up on these things if you see I mentioned I think you’re going to see after the final analysis that our retail sector jobs where you see the growth of our retain economy I mention that in the state of the city. That’s important, that’s those larger shopping center areas are going to mean a $1,000,000.00 to this city when all is said and done and Linda McGill hasn’t given me the final figures, but we think its going to represent close to a $1,000,000.00 in revenue for the city in just shopping center people that work in shopping centers for income tax. That’s growth, housing, additional housing that reflects growth we had a decrease. So we have proposed at various times methods by which we can increase revenue. Sometimes you bought into it, sometimes you didn’t I respect that again, branches of government having their opinions and you need to get along and move on and that’s fine. So what we have to do is watch our spending and see if we can increase revenue I’m working on I think you’ve sort of got a glimpse of it was in the newspaper I’m working on a proposal with Mr. Blosser the Massillon City School District which could save the General Fund some money if we can come up with an agreement to work through some issues that were caused by that lawsuit and the results of that lawsuit. If I can that’s going to save us some money from the General Fund. But I need to put it all together and I need to bring that to you for your opinions and your decision on what we should do. So I’m working on some things including that. The more you, the news media has reported and I’m not knocking them because they only report what they hear. Reports of anywhere from $600,000.00 up to $1,000,000.00. I still don’t know where we got a $1,000,000.00, but that’s okay. But there were times when we were facing million dollar shortages and see some people don’t know the difference between a shortage and a deficit. It’s not a deficit; the city can’t operate in a deficit, so it’s a shortage. What has always happened because we can’t operate in a deficit and the red, we’ve always found the money throughout the years working the same process that’s been done and the same process we’re proposing now. But if there are things that are going to happen that we can’t predict that’s going to affect our revenue stream nobody can predict that in this economy then we’re just going to have to act accordingly. But I think I gave you a couple of examples where that’s what we’re trying to work on and we ask council to participate in that process. Let’s come up with more ways I think Mr. Bryan mentioned in one of the newspapers more ways in revenue and I’m sure that’s what he was talking about. Increase development, increase activities where more dollars will come into the city coffers and I think that’s what we’re trying to do here.

COUNCILWOMAN CATAZARO-PERRY I do have a paper that I would like to pass out to everyone. This is what I call Massillon City Council’s areas of concern. Bill passed out last week at our work session the General Fund revenue and Bill if you could please certify you and I spoke on the phone today could you please certify the amount of the General Fund revenue that you have talked to me about today?

AUDITOR HAMIT – Okay, that spread sheet that I gave you was upgraded with our new carryovers. I’m still with the estimated revenue I’m still holding at $15,6 area for the estimated revenue. I don’t think there’s anybody in this room including myself to hope that I’m wrong. I would rather the growth that the Mayor’s talking about I think we all do it’s going to work. But I have to hold onto that $15,6 or $15,8 for the budget. Our unappropriated balance of $303,000.00 certainly helps there what the Mayor talks about of other avenues there right on everything he talks about is right off the top it makes a plus for the city. The deficit or shortfall whatever name you want to put on it is real with the numbers that are added and subtracted. But again, they’re liquid they can change like you see the carryover today when $40,000.00, $50,000.00 changed just by Anita calling around liquidating some purchase orders that were held in some budget lines that shouldn’t been held over. So…

COUNCILWOMAN CATAZARO-PERRY I had a number done $15,889.000.00, but you thought you might be able to certify this that afternoon is that true? (That’s true) $15,889,000.00, thank you. I did pass out the areas of concern that I found and we spoke about these at the work session I do want to review them. There’s four on the General Fund revenue, the real estate and property tax it was $1,119,650.16 and the county tax has declined and it is $1,108,488.00. The second area personal property was $145,605.93 that is starting to go away and it’s projected this year is $91,642.00. The local government was $1,251,717.45 the county reduced us by $200,000.00 it is $1,045,676.00. Then city income tax was $9,556,974.97 based on 95/5 situation that we approved this evening it will be $10,234,748.00. So those are just areas that I would like to point out as far as general revenue fund changes for next year the auditor was so kind to give to us last week. The areas of concern that I have are listed below under the line budget, school district funds in the income tax department are budgeted at $50,000.00 I consider that very low, police department no comp, overtime or unemployment not in budget about $572,000.00 and disability also was I thought was low it was $352,997.26 this year it’s $330,000.00 projected for next year a difference of about $22,000.00. Fire department no comp or overtime $140,000.00 not in the budget, disability underneath the fire department in the budget was $421,000.00 it was $471,923.01 difference of about $50,000.00. In city hall department, utilities this past year was $391,726.00 in the budget is $429,100.00 and that’s an increase I want to point that out that’s way its italized. Street department no comp or overtime budgeted and that’s generally about $9,000.00. Street lighting increase is significant it was $212,229.01 we did budget $248,000.00 now this is no one’s fault that prepared the budget this is something that we have approved and is going to increase again next year. The totals as I tried to write down since the carryover has changed total expenses in the General Fund are $15,831,049.00. I did try to change that very quickly and hopefully it’s legible for you the total in revenue projections would be with the carryover $15,905,399.00. On the back page there are other concerns street department no comp or overtime was $6,200.00, street department salaries in the budget this year is $523,000.00 and last year was $432,357.25. State Highway M & R no comp or overtime which is about $6,000.00. The Muni Motor Vehicle License Fund you may strike that it will zero out as we have had those changes that Bill Hamit talked about. Park Enforcement Fund budget is $4,800.00 last year we spent $20,537.00 and this is where we believe this is the in the parking deck that we have to pay for with the hotel. Parks and Rec. we have no comp, overtime or accumulated sick leave that’s about $32,000.00 and then also no school district revenue sharing in the budget last year I believe we spent about $24,000.00. Wastewater Treatment no comp or overtime $54,000.00 and supplies, materials and postage in the Wastewater Treatment the budget is $623,000.00 last year we spent $362,686.89. Solid Waste Department no comp or overtime last year we spent $20,000.00 and then the Legends Golf Course supplies, materials and postage increase $160,000.00 last year we spent $136,889.94 also no comp or overtime last year we spent $16,000.00. So I just wanted you to have this as a working tool to keep by our sides this year just as an area to watch for our future. I know we’re going to need to watch the budget very closely this year. I am concerned about the budget, but not to the point of panic however, we have had layoffs in the past and with the tight budget we need to do our very best to prevent this occurring as this affects our employees lives. When I first viewed the budget this was a concern for me and its still a concern for me. City council must put our stamp of approval on this budget and I hope to have that done this evening, but we need to also have some input. The Mayor talked about spirit of cooperation and working together and I believe that also. I believe with the administration, the auditor and city council and department directors we can make sure that we can see this budget thru the end of December. I have presented some additions that I’d like to talk to you about quickly. I think it will be a great way to evaluate our financial status on a monthly and a quarterly basis. So if you could turn to this report its in a gray scale that I have here. This is a report that the Mayor referred to that I would like the department directors to fill out it’s a very, very quick form we could easily I shouldn’t say easily, we could pull this information probably off of the director’s reports that are in narrative form that the Mayor gets and then we receive in the Mayor’s report. I think that’s a little difficult for us to do on a monthly basis and if the department directors would graciously work with us I think that this would be a very quick take a look and see where we’re at worksheet. It talks about open purchase orders and it will tell you in the one column the amount used and balance remaining this is done from January thru December and then it talks about first quarter, second quarter, third quarter and four quarter. Also, it talks about expenses, budget, actual and variance, revenue same thing if the department generates revenue we talked about increasing revenue streams this is a great way to look at it. Then also overtime and comp time because as you see the concern form I just passed out we don’t have that budget for us. So this way we can keep a good track of our overtime and our comp time. The director can also list any departmental concerns and needs that we might need to be aware of. Then if they could just fill this form out it will take a quick moment I would say at the most 15 minutes and turn it into Mary Beth by the 15th of the following month. I just believe this is a great worksheet so that city council has a handle on the budget and where we’re at and what expenses are outstanding. Purchase orders, we talked about that Mayor last week at the work session and we don’t want to micromanage and say “we don’t to have any blanket purchase orders”. However, we think that possibly you could be able to watch that very closely and I think when they turn in this report on a monthly basis we’ll be able to see what the purchase orders outstanding are and the amounts that they’ve used and the balance that they have. I also suggest in the ordinance that we have budget commission and this should be made up of the Mayor and his designee, the Auditor, finance committee and any other member of city council that would like to be included. I would hope that everybody would join in because I think this is a duty of all of us to make sure that our budget runs smoothly throughout the year. The commission will review the monthly reports and I suggest that we just do that at a council work session and then on a quarterly basis is what I’d like to see the commission really come together Mayor four meetings a year to evaluate the quarter. I did say I would like to recommend that we do not have blank purchase orders as I think that may create a problem for us this year and that we will not evaluate any capital improvement until the month of June. Not the end of June, I just would say the month of June would be fine that we do not approve anything as a capital improvement until June. The Mayor spoke about asking for the budget October the 15th and I would like to see the budget October the 15th. As he stated it is a work in progress and if we got involved a little bit sooner in the process I think that will help us its not a micromanaging or controlling it’s just that city council has to put their stamp of approval on this budget and its hard, very difficult to go through and we did do that line by line and then try to understand without comment Mayor where the budget is coming from. The changes or the discrepancies that we say so I would like to see the budget October the 15th so that we can work with it for a few months instead of a little less than a month. Are there any questions about anything that I presented so far?

COUNCILMAN BRYAN Couple of comments I’d like to make and maybe a question. First of all, I don’t see anything in the ordinance about not having blanket purchase orders and I correct? (That is correct) It’s not in the ordinance we’re not banning blanket purchase orders. I agree with you Kathy about the worksheet I understand not every department head may find it useful or it may not fit their situation but a lot of the department heads like you pointed out are already giving us that a lot of that same information in the Mayor’s monthly report that he puts together and passes onto us. The problem with the purchase orders I think its come up partly because of me. Because the report we get from the auditor which is a lot of good information but it shows the balance and then what’s encumbered and then the available balance. Well in that number of what’s encumbered are all the purchase orders. So if a department head like we talked about during our budget sessions one of our department heads has a $62,000.00 open blanket purchase order we just don’t know. We don’t think that he’s doing anything wrong; we think he’s running his department as efficiently and as well as he can. But we don’t know how much of that $62,000.00 we were sitting there in December 20th or something he’s going to spend or he’s not going to spend. So we don’t know for next year how much of that $62,000.00 might be available. That’s all we’re saying if we could get some feedback on these large open blanket purchase orders because some of the departments heads will go and just put out a blanket purchase order on their whole supply line item at the beginning of the year. It’s easier that year, okay, and I’m not saying they shouldn’t we just want the feedback how much of that that’s encumbered that’s on a purchase order have you actually used? Okay, if we could get some feedback like that would be helpful. As far as estimated revenue the mayor spoke about it several times and he’s absolutely right it is just an estimate and sometimes we exceed that estimate and sometimes we don’t meet that estimate, but in the four years that Bill’s been the auditor we’ve been pretty close within 1 or 2% of the total for the general fund. Not just income tax, but the total for the general fund which comes from about 25 different sources within 1 or 2%. So it’s still even though its just an estimate its still a fairly accurate estimate. As far as the $300,000.00 carryover and that takes care of about $300,000.00 problem that’s not I don’t very often disagree with Bill Hamit but I’m going to disagree on this one. Budgeting $15.8 which is still we know $700,000.00 or something you know less that we know we’re going to have to spend on salaries, but the estimated revenue is $15,558,000.00 or something. So the difference the reason we can pass this budget is the carryover. Okay, now we’re glad to have it, it sure beats trying to sit down here tonight and reduce the budget some more and it’s a good thing. But I’m just saying I don’t really look at it as being already we’ve come $300,000.00 closer, we haven’t we’ve come $75,000.00 because of the increase carryover. Again, that goes back to the purchase orders the reason that Bill gave part of the reason that we have a little higher carryover his staff went through purchase orders called department heads and got them to liquidate them. So it’s kind of like money we don’t know we have or we don’t have until they do something like that. Again, we’re not asking that every purchase order be reviewed I know that was I remember that process you know that was not council’s idea, but something the administration did and you know it was partly successful, but that’s not what we’re asking for. I’m happy to hear the mayor say that he wants to get Mr. Gaiten involved I’ve thought since he came on board that that would be a good use of his talents. Mr. Slymine over in Canton told me you know as soon as Frank hired him this fellow knows budget he was the Canton budget director for I think 13 years if I remember right. So that I’m happy to hear that he’s going to be the designee and as far as the Mayor being on the commission you know we’re all on boards and commissions that we don’t make to it to every meeting. I don’t think we’re commanding him to be there, but we’d like to put him on the commission cause of his authority just like he’s on the Planning Commission I know he tries to make all those meetings too. But you know we’re not commanding his presence we’ll be happy to have him if he can make it. So that’s all I want to say. Thank you.

COUNCILMAN PETERS – I guess, I don’t agree with the part about not passing any capital improvements until June. I’d like to bring the mayor to ask him a question on that if I could or am I not allowed? I guess my question is how could we possibly do that and be good planners in the year ahead if we don’t pass any capital improvements till June. Can we do that? Or would you recommend we do that?

MAYOR CICCHINELLI – Well, I just spoke to the Auditor tonight. Normally, if you remember let’s go back usually in February or March is when you get a capital improvement guideline. Again, it’s just a guideline for you broken down into various things that we’re going to propose to do like street resurfacing, street projects, buying equipment, etc. The bulk of the dollars were spent after June so we’re arguing semantics here. I’m still going to get you a guideline in that same time frame February or March. Again, this is the perfect form of government our founding fathers came up which is the balance of power. In the two branches of government interacting you have to approve every expenditure. So if you’re asking me can we plan and is it going to make a negative impact on the acquisition of capital improvement items this year probably not because the bulk of it occurs after June anyhow. I think again if we have an emergency though we have to look into that in case we would have an emergency. But Mr. Hamit’s going to give me an estimate of what he thinks will be available for capital improvements and we’ll go from there. It’s going to be extremely a lot less than what we had in “06. But we really did a lot of things in “06. So I think this year we’re going to do less, but I think we can still accomplish what we want to accomplish.

COUNCILMAN PETERS – Well, my concern is like if we wait till June to pass something…

MAYOR CICCHINELLI – Excuse me sir, pass what?

COUNCILMAN PETERS – Like pass a capital improvement…

MAYOR CICCHINELLI – You don’t it’s just the capital improvement budget that I give you is a guide. It’s no budget, it’s not a budget.

COUNCILMAN PETERS – But in this part of the ordinance…

MAYOR CICCHINELLI – But, okay, let’s say we do our streets when do you really pass the streets usually what July or August? So you already pass that deadline that’s going to be the bulk of the money this year. Equipment wise, we really updated a lot of our fleet in the various departments. I think we made a major impact we would like to buy additional police cruisers that’s going to be on that. Because we have to keep up on that because the number of mileage these cars have on them. They are constantly…

COUNCILMAN PETERS – Okay, that’s a good example I don’t mean to interrupt you, but if we don’t pass that before June okay, or lets say we don’t you need police cruisers and you bring an ordinance forward in March and we said we’re not going to pass any capital improvements until June. Now that might have an affect on when we order them, when we and so forth and we might not get them police cruisers and could very easily have the money. I mean you don’t know that.

MAYOR CICCHINELLI – That’s absolutely correct.

COUNCILMAN PETERS – So that is going to have a negative effect on the way the city runs if we say we’re going to do that.

MAYOR CICCHINELLI – Depending on how just use the cruisers as an example. That was going to be one of the things on the capital improvement. But don’t Mr. Peters; don’t make that the absolute finality or the gospel. That is not a budget that I present to you, that is just a guide. That is some of these things are going to be done and some of those things aren’t going to be done. Now the “06 guide for capital improvements was done, but that does not the time of that is not the same for every year. So you gave a real good example because we do like to keep those because the number of mileage that run up on these the officers run up on these cars you need to keep ahead of the game. We were going to propose acquiring cars through the lease purchase like we did previously. Yeah, there’s a payment well, again, depends on how we finance it, there could be a payment in “07 could be a payment left over for “08. So we have to get into that, but, yeah, that is a good example with let’s say we get 4 or 5 other cars out of commission that’s an emergency I just mentioned we would be to you saying “hey, we need to buy some cars and get them ordered pretty quickly”. But understand why Mrs. Catazaro-Perry is asking for that what she’s talking about I think and I don’t want to put words in her mouth; is our major expenditures out of the capital improvement. Which I really think again, in wanting to work together I can understand that and that’s probably wiser to do only because by then you’ll know a direction and which way we’re going in those estimated revenues will tell you exactly what we’ll have. It would be a better read than January or February. So we’re on the same page…

COUNCILMAN PETERS – I just don’t want to see anything etched in stone that we can’t get pass…

MAYOR CICCHINELLI – Yeah, well there isn’t because there’s no budget. I mean the budget is doesn’t exist that your talking about not like the city budget you’re hopefully going to pass tonight. This is a guide, its not a budget, its just a guide to help council. One of the things I’d like to say and this is the first time I saw and it’s pretty comprehensive Kathy did a good on it. I think council should be concerned about the top part of this because we are being impacted by revenue decreases that we have no control over. I mean that is, that’s something we need to start making noise about as the second largest city in the Stark County. We know personal property is going away, we know real and personal property, real estate taxes I mean that’s some properties were reevaluated, all properties were reevaluated and again that’s a projection. But local government funds why they’re cutting us in talking with the auditor we are doing things, we are being conservative in our approach to the way we operate our government and that sometimes punishes you because we don’t borrow millions and millions dollars every year like other cities do. You get penalized for that and that’s reflective of the local government shares which come from accumulation of a lot of different funds and then are dispersed by the county. But seconded largest city in Stark County should be getting more money than this. So three of those we really don’t have any control over that’s why I mentioned the revenue that we need to continue to increase.

COUNCILMAN PETERS – Thank you, Mr. Mayor. I would just like to further Kathy you done a great job on this and I wasn’t trying to blast you. I just, I do have concerns about that and it wasn’t nothing against you personally. I just…

COUNCILMAN BRYAN I’ll be brief because I know Mr. Manson hasn’t got to speak yet. But back to the local government Frank, years ago, you appointed Kirk Albrecht I went over there with him this was a contract that we entered into and we did quite well these would be what we could have got have gotten out of those funds. City of Canton, City of Massillon did better than the formula that would have been shoved on us by the state if all Stark County didn’t agree to a formula. So I’m aware of how the formula works I know what Bill’s saying part of the formula how big is your general fund determines plus your population determines how much you get. I don’t know when that agreement expires but I think it was like a ten year agreement so we could look into that.

MAYOR CICCHINELLI – I think we need to because they do punish cities I shouldn’t say punish they do reduce revenues to cities that tend to not borrow a lot of money and we tend not to borrow a lot of money within our general fund areas. I mean I think its sort of an accumulation of a lot of different methods that they use and yes, it was a method where we did have representation and I think Kirk did a good job in representing our interests and there were increases each year. Now it seems its going the other way and there’s probably were reasons, are reasons for that we just probably need to find out what those reasons are and why they tend to decrease ours. I know that the City of Canton I wonder if theirs has been reduced we’re going to look into that. Because I just don’t understand why some of these dollars are being reduced. Personal property was never a big deal for us anyhow because we don’t get that much in real estate taxes anyhow or for personal property. But, yeah, $91,000.00 is $91,000.00; so…

COUNCILMAN MANSON Yes, first of all, I’ve got a lot of problems with the budget personally as this ordinance personally. I’m just as concerned as everybody else about the possible shortfalls. Last year at this time we were sitting here or a little earlier than this we’re talking about a shortfall last year I think it was in the range of $600,000.00. I don’t know what we’re talking about now because I have heard these numbers from $600,000.00 to $1,000,000.00 and I have heard a carryover coming in a larger than what we expected. Mr. Auditor, would you care to tell me what you’re projecting the shortfall at then right now?

AUDITOR HAMIT – There’s let me just say that there’s a lot of things that’s said tonight and I think everybody is on the same page it’s just a matter of how we’re getting to the end of the book. It’s a good theory, the shortfall or the shortage what it maybe you can go through your budget lines and see where the shortfall how my determination the only number I ever said was between $600,000 - $750,000.00 possible shortfall. There are a lot of things coming into play now to shorten that up. If you add up all the numbers as Kathy did in her sheet I don’t have a copy of it but I’d seen his. Heck of a job, you know, if you go through the whole thing those numbers come up quite higher. But some of the numbers are negated by other things that are happening in the budget. I think we’re sitting on the budget at this point similar to where we were last year. The only problem this year is we don’t have this big split on the income tax and we had no knowledge of what the inheritance tax is going to be. That’s really what pulled us through this year those two items changing the split from 87/13 and the inheritance tax is really what saved us this year.

COUNCILMAN MANSON Okay, but that’s what I wanted to know is we’re approximately in the same position as last year.

AUDITOR HAMIT – Yeah.

COUNCILMAN MANSON We’ve left the inheritance tax out now this will the third year we’ve left that out. It wasn’t in there last year.

AUDITOR HAMIT – This is 2 ½ years it was the last quarter of the year before.

COUNCILMAN MANSON Okay, so it wasn’t in there when we calculated it last year. Okay, and I’m concerned I know we are going to really have to be on top of this. Myself, personally I go to the auditor’s office just about every Monday you can ask him. If I don’t show up I usually get a call or something wanting to know where I’ve been. I do stay right on top of it. I do have some problems when I get to page 18 of this ordinance I have a problem with section 5, 6, 7 and 8. First, number one problem that I have with those is lack of discussion. I have a lot of questions about this how you know how it would work. Is it enforceable, do we have the right to enforce this on the executive part of the government? That’s a real question for me, but the number one question I have or my number one problem with this is the lack of discussion prior to this being put on the ordinance. Because of that I realize we do need to approve a budget at some point in time, but I will not be voting for this budget with those on there. Normally, when we have things like this that are put in an ordinance they’re brought to the committee as a whole and discussed very thoroughly. The only time I saw that not happen was last fall when we acted on the residency rule where I believe the fire department very little discussion. We made a quick decision an emergency decision and we ended up now we are going into litigation because of it. Now we may have talked that out for a while and we still may have made that decision but we did not give it fair discussion. I do not think that we have discussed any these items here. I agree Mr. Peters on not making any decisions until June I think we’re trying to legislate self discipline here. I think its up to us to have that discipline you know and I don’t disagree with these meetings I’m not saying that we shouldn’t have those meetings. I do maybe disagree with department heads, directors, having to make a monthly report because we have that information available to us through the auditor’s office. I’m a person that do not like to see more and more stuff piled unnecessarily on managers or workers, people period. I think that information is there, I do think that if we had serious discussions starting in the next committee meeting and found out whether or not we could do this or whether or not we were going to have cooperation from the Mayor’s office I may be able to support it. But I can not support them as part of this ordinance. I think they have no business being in this ordinance. That’s all.

COUNCIL PRESIDENT GAMBER As a follow up, I ask the Clerk when did you receive this ordinance for legislation?

COUNCIL CLERK MARY BETH – The sheets were sent to me Friday.

COUNCIL PRESIDENT GAMBER And did all the members of the committee sign off on them?

COUNCIL CLERK MARY BETH – Yes.

COUNCILMAN MANG Yes, we’ve been talking about the shortfall and I think the big difference between last year and this year is 8%. Last year it was 87/13 we started out the year, this year we’re talking about 95/5 that’s 8% more going into the general fund and we’re still talking about a shortfall of some nature. So I think our budget is in serious, very serious shape. It’s very difficult to start a year out at 95/5 realizing that the potential of $5,000.00 or $500,000.00 thereabouts capital improvements and we know we have an area of $200,000.00 worth of commitments out of that. So there’s $300,000.00 of cushion again I refer to the 8% difference. 87/13, 95/5 that’s an awful big difference and we were able to draw in the last quarter enough money to make this $303,000.00 a reality. So I think we have to keep that in mind that’s the 8% difference that’s the big difference in this budget. That’s nothing anyone of us can control its just a fact of what we know we have to start the year out with. I don’t know if any councils have been forced to look at a 95/5 you talk about an outlook on what we think we can do in a year its very narrow. It doesn’t leave a whole lot of light at the end of the tunnel because the money that we may need for this year may have to come out of that $300,000.00. I know we’re projecting 0 income tax growth and I think that’s fair to do that. We’ve been blessed so to speak in this city in our area with our economy. We’ve been very fortunate we’ve had a lot things happen to us but a lot of good things have happened that have kept the income coming in. For us to project anything beyond that I don’t think we would be doing ourselves a favor or the people who for us. But again, I repeat, the 8% is a big difference that what we’re talking about here tonight.

COUNCILMAN MAIER Yes, I’d like to expand a little bit on what Mr. Mang had to say. If we are starting out with a 95/5 we don’t have the cushion that we had last year. Where are we going to draw extra monies towards the end of the year if we do need it? I know contractually a lot of these things like comp time can be built up and then fourth quarter we get a big comp time bill and I’d like to confirm that with Mr. Hamit. Because of contracts we do if you could comment on that we do have like a mustard out towards the end of the year of comp time pay and holvac pay and things like that that’s just not showing up here that we have to be careful of. We just need to proceed with caution am I correct on the end of the year thing?

AUDITOR HAMIT – You’re correct the employees can turn in June and in December for their comp time that they have built up. The majority of this these line items are controlled and governed by contracts. There’s very little that the administration or anybody has control over once the contracts are in and up and running. You know we have to fill those line items as such. Is that what you want me to say?

COUNCILMAN MAIER Yes sir, I guess I just wanted to point out that some of those big deficits come toward the end of the year. I know the administration does a great job in trying to keep a lid on that it is contractually there’s nothing that we can do about it, there’s nothing they can do about it. I don’t think its improper to ask for some checks and balances as we go in order to make sure that we’re okay with it. I don’t think that’s asking too much and I don’t think we’re trying to micromanage the city. I don’t believe we’re trying to take the administrative role. I just think we’re trying to be good stewards of the money that we’re being entrusted with here and make sure that we don’t put ourselves in a position where we’ll have to do something we don’t want to do like the mayor said the worst thing he ever did was having to lay people off. We don’t want to do that, so I just don’t think it’s a bad situation to have in this ordinance just some checks and balances just so we can kind of track it as we go. If people feel that that’s taking authority or something to that affect I don’t feel that’s the intent of this. The intent that I feel of this just to see where we’re at. So that’s my take on it.

COUNCILWOMAN FERRERO – I personally think that the finance committee did an outstanding job with putting all this together so I commend you. I do think that it is always good when we come to our work sessions and we have the capability of discussing things as a body of the whole rather than just three people from a committee or if you pull in somebody from another committee. At the time of the year when you met to work on this it wasn’t a good time for everyone to come to those meetings. So I understand that but I do think that it would be in the best interest of the whole council if we did strike everything from section 5 thru section 9 and discussed those. That doesn’t mean we can’t put that into a brand new ordinance, but I do think that we should discuss it at a work session where everyone can say what they think and maybe we could tweak it a little if we think we need to. But so much of it is good, but there are some things that I think that might be better discussed as a whole. I’d like to see that happen and is that a possibility you could do that?

COUNCILWOMAN CATAZARO-PERRY Actually no. I plan to go forward with the entire ordinance this evening. The finance committee did make a recommendation that they all signed off on it. Everyone did have an opportunity from Friday on to make comments to Mary Beth or to any of the members on finance committee and we have not received as far as I know any comments or any phone calls or concerns. We plan to go forward this evening with the ordinance.

COUNCILMAN MANSON Yes, I want to go back to make it perfectly clear to Mr. Mang and Mr. Maier I don’t disagree that we don’t have a problem. We do have a problem, okay, as far as the budget and I think it takes a lot of serious work. As far as called I did call one of the finance people today and for whatever reason did not get through to them. Okay, that being said, I go back to my problem is the lack of discussion. Even if the finance committee went together and discussed this you know I heard these things from time to time, but I’ve never seen them put together as a proposal. I still feel that an ordinance that’s proposed to be legislated for us to act on should be discussed as a committee as a whole. For that reason I will vote for this tonight. Not that I don’t believe you know that we have to approve some kind of a budget to move ahead, but we don’t have to do it tonight. I’m not going to vote for it with those things in it. I was not in on the discussions and I don’t think that’s the appropriate way for council to be moving things through. I know I’ve never done that to the rest of the people here you may not like the positions I take but I do keep things on in the open and discuss them. If you know if these are such good ideas I think you should have the confidence to bring them out here and discuss them with the rest of the people. There are also some legal questions that I have about this that need to be answered. That’s all I have to say.

COUNCILMAN PETERS – Councilwoman Catazaro-Perry, I would ask also although I signed off on it and I’m in total agreement with Councilwoman Ferrero and Councilman Manson that I think that they deserve the opportunity to discuss this and I’m in no hurry to pass it anyways. We don’t have to pass this until the 12th that’s the latest date and I just I’m not for rushing in to signing or passing anything at this time. But that’s just how I feel just take our time.

COUNCILMAN MANG Next council meeting is…

COUNCILMAN PETERS – You could do it we’ve had special meetings before…

COUNCILMAN MANSON We could it do on the 8th we could have a special meeting…Committee on the 8th would be a fine time to discuss it.

COUNCILWOMAN CATAZARO-PERRY I just want to point out that we only had from December 4th up until now and this budget as you know we worked on and went through every line item by line item. We also worked with auditor on talking about the general fund revenue, we talked about carryover, we talked about no comp time, no overtime and we’ve been all over this budget. What has been created is really a conservative approach to making sure that we follow through with the budget that we’re approving. If you do not want to approve the budget this evening with those items attached I’m going to move that we table the budget until we can discuss them. Because these four sections do not hurt anyone. They actually protect city council, they protect the mayor, they protect our employees and that’s why they were put into place. It is very, very, difficult to take a budget as we have here with the shortfalls and say “we give our stamp of approval”. That’s why we came up with I came up with these items section 5, department directors will fill out this form, worked in a hospital for many, many, years was responsible to a C.N.O. this is a great check and balance for the person that’s in charge which is the mayor wonderful check and balance. It doesn’t hurt anyone like I said earlier takes about 15 minutes to fill out. But yet Paul, you and I will know what purchase orders are not utilized, we’ll know what the balance is. Right now we don’t have that knowledge. So that puts us at a disadvantage all I’m trying to do is create an advantage for city council for knowledge of our budget and to make sure that we follow through with what we said we’re going to do. You don’t have a problem with the budget, but yet you don’t want to approve these, these are safe keepings for you…excuse me I’m speaking…

COUNCIL PRESIDENT GAMBER Mr. Manson, she has the floor

COUNCILMAN MANSON I do have a problem with the budget, no; I will not sit here and allow her to put words into my mouth. I did not say that I don’t have a problem with the budget.

COUNCILWOMAN CATAZARO-PERRY Section 6, it just talks about a budget commission and again, it brings us all together to talk about what’s going on in the city. It brings the auditor together which he has done an excellent job this past year keeping us up-to-date where we are. We have done a lot of great things I just want to see city council have some kind of input into what’s going on because we are giving our seal of approval on the budget. It’s not hurting anyone. Section 7, the yearly budget proposed by the Mayor will be accessible to city council October 15th. Just what you’re saying we didn’t have time to discuss everything. Well, I didn’t have the enlightment to create these things until last week. I’m like “what can I do to make this a better process for city council” all of sudden it hit me and I designed these items. I had to pull them from different places. So again, it’s not hurting anyone it just puts us in the loop of working with budget on a little bit of an earlier time. Then talking about section 8, capital improvements the Mayor spoke about that earlier tonight. We generally don’t do a lot of that until June anyway. Again, its just making sure that we have all the dollars that we need to take care of salaries and expenses that we already allocated to provide for the city to make sure. Then we’ll take a look at that in June. I don’t see and I just like to just go forward tonight I don’t see where any of that hurts anybody. It’s just helping the process a little bit and its helping you and I be more accountable to the citizens that elected us.

COUNCIL PRESIDENT GAMBER Okay, let me, there were several other hands up here and then we’ll let Mr. Manson respond. I will mention though that I do have to agree and since one of the members of the finance committee indicates that a large number of questions would make it prudent to wait until next Monday. But you can what you choose. Who else had their hand up? Mr. McCune?

COUNCILMAN MCCUNE – I was just going to suggest that in the spirit of cooperation that I would like to see us go forward with the budget item. I think 5 thru 9 are good ideas, but there are concern among the members here that about some legalities and so on and so forth. I think Jayne made a nice offer you know that we can pass the budget tonight; we can go back have our discussions over these issues and put another ordinance together and put this in place at a later date without having to hold the process up. I would like to maybe suggest that we do that.

COUNCILWOMAN FERRERO – I do think we need a little bit of council courtesy so that they can discuss it. That’s the only thing that we’re asking and I know a lot of time and energy has been put into this. However, other people have ideas and comments and thoughts about it and would like to discuss that. I think as a council courtesy that you should grant that wish.

COUNCILMAN PETERS – Okay, I’m in agreement with Kathy. I think we should if we’re going to do this let’s keep it in the ordinance like it is. I’m not for striking it, but I am all for talking out in a committee meeting on next Monday. But I am not for striking part of it and going forward with passing it. I want to keep it in there until we have the opportunity to discuss it.

COUNCILMAN MANSON Will, I guess I should, I was out of line arguing. But I have not denied that there are some problems that I have with the budget. That’s what I’m the budget I’m not saying we did not have a problem right now with the budget. I’ve looked at those shortfalls just like you have. You know I listen to Mrs. Ferrero the other night when she suggested that the department heads immediately stop comp time and overtime. Well, that’s a fantastic idea and I worked at Hoover and we used to do that things like that periodically, but some of this we can’t stop. We have a contractual obligation on some of these manning issues that we have to bring people up in. So we can’t just say “no comp time or no overtime” we can’t do that because contractually we have to do those. So we need to hammer these things out through the year. How we can get these budget, these lines to balance out. My problem like I said was with 5, 6, 7 and 8. I just think we need to have more discussion about it. I think they’re good ideas now we had a couple of years ago we asked for the budget on October 1st and I think we got it by maybe the 17th at the same time though we didn’t act on it till about the 1st or the 2nd of January or something like that. So we had it that time there was no excuse for us to do that but we had it at that time. I don’t know you know because we don’t have our own discipline that we have to legislate this discipline. I just kind of like to pound things out. Some of these ideas would be great I would love to set you know let’s sit down and talk about these things periodically. I’m not for putting more work on the department heads. I think that is the Mayor’s job, I think the Mayor demands reports from his people we get the monthly reports and what we have right now between you know we get a monthly report that goes to the Mayor, we also have the auditor we can depend on. So you know, that’s something I guess that’s the Mayor’s job. I’m not sure on that one, but I still would like to I think its unfair to move on it without discussion.

COUNCILMAN BRYAN I have a different take on this. I’d like to see us pass this tonight. I know Bill Hamit agrees with me on passing a budget at least tonight. We have bills which will need to be paid between now and the 8th. If we’re going to have a special meeting on the 8th well we’re having a meeting now. You know, we’re discussing it now everybody tonight has had a chance to discuss these items. Some people like some of them and not others. You know, the Mayor for his part has pointed out his you know his not being able to accept that council steal the administrative role, but at the same time he doesn’t strongly object to what’s in here I don’t believe. If it’s legally unenforceable you know I don’t think we intent for it to be something legally enforceable on the Mayor. We’re coming up with a process, our own process and asking him to work with us on it and he has already said he’d work with us if it becomes a problem we can change a form. If a department head says “I’m already giving you that stuff” he or she just needs to show us where and its not an attempt to be unreasonable. It isn’t something that we’ve done before, but you know I think its something that we can do and we should do. I do have a problem with not passing a budget 2nd of January. If we wait till the 8th you know it’s the 9th before the auditor can write a single check or pay a single bill or whether the employees know whether there’s a budget in place or not and what’s in their budget. I think we need to pass a budget tonight. I’d pass it the way it is you know if you have a different opinion I can respect that.

COUNCIL PRESIDENT GAMBER Is there anyone that has spoken yet that would like to? I would like to make the observation that there is a difference between a council meeting which is primarily a business meeting and a committee meeting which is designed for extensive conversation. The council rules do limit everyone to 2 sets of comments in my opinion the reason they do that if everyone has gone through 2 sets of comments it indicates that there’s still more questions. So I’m going to turn this over to Mrs. Catazaro-Perry to wrap up and then to either make your motion or whatever you would like to do.

COUNCILWOMAN CATAZARO-PERRY Well, I would like to make a comment. I did talk to Perry Stergios and asked him if we could do this. You can see it is on the ordinance, so obviously we could do this. It is not our intent to punish anyone for not attending the committee meetings. The commission was created and Mayor if you would like I can strike the word “and” and put “or designee” in the section 6. If you want to discuss this further this evening I do happen to agree with Tim. You know, we started out December 4th there were several of you that could not to some of the meetings. The Mayor for one could not be at any one because he was ill and that’s why he commented this evening. So we have worked diligently on this it is a process and its not like we’re trying to run anything in through on this ordinance. Again, I’m trying to protect all council members, I’m trying to approach this in a cognitive manner that’s going to work with the other departments. Cognitive may not be the exact word I’m looking for, but I’m trying to do this in a process again, harms no one, this report like I said earlier takes at the most 15 minutes. They’re already writing this stuff down it’s just saving council time from going through the entire Mayor’s report and gathering this information ourselves. If each department director does it it’s not going to take us 2, 2.5 hours, its going to take them 15 minutes each to present this to us. As far as having the budget Paul, you said we asked for October 1st we got it October 17th I don’t recall that I don’t ever recall getting the budget till about December. Again, this October date is not to put the Mayor in constraints of trying to get us a budget, but its trying to help council work at this together because we are responsible for passing it as Ron said a few weeks ago at the work session. That’s what sparked me to create something like this is Ron hit a nerve in my brain that said we are responsible for this and if we are responsible for this we need to have a little bit of input. I’m not trying to bulldoze anyone tonight, I’m not trying to anything on the sly everybody received all of this information on Friday. Again, I did not receive any comments the Mayor received this on Friday, I asked Mary Beth to forward it to the mayor, to the auditor. I didn’t have any questions from anybody. If you want to continue to talk about this evening I would prefer that we do it tonight I agree with Mr. Bryan, Tim that the auditor does have to pay bills. We do have salaries coming up to pay although they are after the 8th. But we do have bills that we have to pay and its just a save guard to all employees that know that we do have a budget in place for the year 2007. So if you want to discuss it, if you want to change something, if you want to talk about it I’m open to do that, but I don’t want to strike anything from this ordinance. I want it to go through as it is and if you decide to vote no on it then I guess that’s your choice. I think that we can work within this budget I don’t see anything wrong with the things that we put in place. If we find that this worksheet is not working for the department directors it doesn’t say we have to use just this worksheet. We can expand it and change it and make it better. But I just think we need to go forward this evening and pass this budget. So if there are no other questions or comments.

COUNCIL PRESIDENT GAMBER If I could make a comment as for first reading it does take 7 votes to suspend the rules and then secondly after all this discussion or perhaps before I would suggest about a 10 minute recess if you like to sell and lobby the position or if you want to continue right now we can do that.

COUNCILWOMAN FERRERO The only thing I want to say is that you said it wasn’t your fault that everyone couldn’t attend the meeting. The original meeting that was scheduled was scheduled before a regular council meeting if you recall and you’re the one that changed that because you couldn’t make that meeting. So then you scheduled it for when you could make the meeting and with no consideration for the rest of us. So and you’re the chairman so that’s fine and dandy, but I think you need to be thoughtful of us too and maybe you should take a 10 minute recess so some of us can talk about it with you….You know, Kathy, you need to be thoughtful of our thoughts as well.

COUNCILWOMAN CATAZARO-PERRY Mrs. Ferrero, I just want to point out that you couldn’t make the Monday evening meeting anyways. So I’m not sure where your comment is coming from.

COUNCILWOMAN FERRERO I was here at that Monday meeting.

COUNCILWOMAN CATAZARO-PERRY However, you know I will at least grant I just want to grant the 10 minute recess then and then we’ll go forward Mr. President, as soon as that’s up.

We’re back in session.

COUNCILWOMAN CATAZARO-PERRY I would like to bring the auditor up and following the auditor, the Mayor. I do have a question I’d like to propose to both of you. I know that we already have bills in place that are here that need paid. Mr. Auditor, could you just comment on the sections that we have on page I believe 18 section 5, 6, 7 and 8. Do you have any problems with complying with that those four sections?

AUDITOR HAMIT – Well, 5 doesn’t affect me other than me turning in a report to you guys which I do now. 6, I have no problems with attending quarterly meetings part of the budgetary problem. I’d like to see in there auditor or designee; if I happen to be somewhere a lot warmer than Massillon, Ohio, I’ll send somebody else I won’t be there. Number 7, is not involving the auditor’s office and number 8, with Donnie’s comment to the Mayor and if you do have an emergency I think this body would address that emergency at that point. So you know because they don’t affect me I don’t thing they’re unreasonable.

COUNCILWOMAN CATAZARO-PERRY Mr. Mayor, could you come up you spoke earlier about several of these areas. But in all in all these 4 sections that we have do you see this harmful to the city any way?

MAYOR CICCHINELLI – No, I think harmful I would not consider it harmful. I think I told this body earlier this evening that these things we already been there, done that. We’ve done a lot of these things where we did have meetings primarily for our purchase order process. Seriously Kathy, in all honesty I think if council and the administration and I also said this earlier would have had a little bit more time to discuss it without the deadline and everyone receiving their copy on Friday with vacations, people being ill, people not being in their office and all this some people including myself didn’t’ see these proposed changes until today. But I understand and I don’t’ have any problems philosophically with them any way we can get the legislative authority to work with us in this process I think is a blessing for everybody. Most importantly to the 33,000 citizens of Massillon. The only thing I ask that you do in section 6 to make an amendment to say “Mayor or designee” and the auditor just spoke “Auditor or designee”. I told you I will attempt to get you something by October 15th, but again I will try, I will attempt we’ve got to wait to see how this year goes and I understand it’s a work in progress for the entire budgetary process.

COUNCILWOMAN CATAZARO-PERRY In hearing that both from the auditor and the mayor and knowing that these four sections that have been created are not going to harm the city in any way. But help us to work together. I believe that we’ll go forward and amend Ordinance No. 7 to say just as the Mayor asked the budget commission that the city council here creates will consist of the Mayor or his designee, Auditor or his designee. I would like to propose those amendments to Ordinance No. 8 – 2007.

COUNCIL PRESIDENT GAMBER I’m sorry I was in discussion here. We don’t need to amend this since we have not considered it. Your suggestion for section 6 was “the Mayor, or his designee, Auditor, or his designee” is that correct? (Correct) If everyone would please make those two changes.

COUNCILWOMAN CATAZARO-PERRY Finally, I do want to say that I believe that we have given council complete consideration, the finance committee has come forward and all signed off on it. I am going to go forward tonight with suspension of the rules as the auditor does have bills to pay. I do believe our city residents and employees do need to know that we do have a budget in place.

COUNCILWOMAN CATAZARO-PERRY moved for suspension of the rules and passage, seconded by Councilman Bryan.

The rules were suspended by a roll call vote of 8 yes, 1 no. Manson voted no to suspend the rules.

COUNCILMAN MANSON Excuse me, is there any discussion before we vote on passage? Is there a place for that?

COUNCIL PRESIDENT GAMBER We can discuss if you would like to I thought we were done with that section though. But please go forward.

COUNCILMAN MANSON I would just like to ask the law director a couple of questions. I’m sure you’ve heard the discussion over 5, 6, 7 and 8 I just want your opinion I mean can we impose these on the administration to make them do these?

LAW DIRECTOR STERGIOS – Generally, I don’t believe that you can. Section 6, I’m be unsure we could create a budget commission, but I don’t if we could make the Mayor or his designee or the Auditor or his designee show up at any meetings. But that’s really they agreed to the concept I think most everyone here agrees to the concept it may not work exactly as planned, but I well section 8 for example doesn’t really say a heck of a lot in my opinion other than we’ll evaluate the capital improvement proposed projects in June. It doesn’t stop us from doing them before, doing them after. Police cars are a perfect example you guys most of you brought it up if we need a police car and you decide to order it in April that’s your proagative. Doesn’t matter what this section 8 says. I don’t think we can write all the papers we want that say the Mayor has to have you a budget by the 15th of October, but if he doesn’t give it to you there’s nothing you can really do about it other than not pass it when he does give it to you. That’s your…so I agree with everyone that it’s a good idea, but its there’s very little ability to enforce it or put any teeth into it or penalize somebody for not following it either.

COUNCILMAN BRYAN Just to say real quickly that was my point. We don’t have any, we didn’t write any penalty clause into these things. You know, this is our idea of how can go forward together its written down as a blueprint and I think everybody that votes for this understands that, that’s all it is.

COUNCILWOMAN CATAZARO-PERRY And I just want to reiterate what Tim said. We’re not trying to punish anyone by having these in here. It just helps council this is just a helpful tool for council. We don’t want to punish anyone we don’t want to have any enforcement on this we just want to work together and this just helps us to get to that point in my opinion.

ORDINANCE NO. 8 – 2007 WAS PASSED BY A ROLL CALL VOTE OF 8 YES, 1 NO. MANSON VOTED NO.

ORDINANCE NO. 9 2007 BY: FINANCE COMMITTEE

COUNCILWOMAN CATAZARO-PERRY Section one just authorizes the city auditor to pay various 2006 bills and that will be received by his office between January 1st and March 1st 2007 and pay out of the 2007 appropriations within the various departments. Section two, he is authorized and directed to pay 2006 bills that have been received it just really repeats itself. Section three we’re declaring this an emergency and I’m going to move to suspend the rules.

COUNCILWOMAN CATAZARO-PERRY moved for suspension of the rules and passage, seconded by Councilman Bryan.

The rules were suspended by a roll call vote of 9 yes.

ORDINANCE NO. 9 – 2007 WAS PASSED BY A ROLL CALL VOTE OF 9 YES.

7. UNFINISHED BUSINESS - NOTHING

8. PETITIONS AND GENERAL COMMUNICATIONS

LETTER FROM OHIO DIVISION OF LIQUOR CONTROL REGARDING A NEW LIQUOR LICENSE FOR RICHARD S HASSEL DBA CAPTAIN DICKS DRIVE THRU N/S ONLY 1005 1ST STREET NE MASSILLON, OHIO 44646

COUNCIL PRESIDENT GAMBER That is Mr. Maier’s ward he has a copy I do notice here Mr. Maier it does say regarding a new liquor license.

COUNCILMAN MAIER Yes, I say that it must be a change in status.

9. BILLS, ACCOUNTS AND CLAIMS

1. WALTER DRANE COMPANY – $4,173.00.

COUNCILWOMAN CATAZARO-PERRY I move that we pay the bill, seconded by Councilman Peters.

Roll call vote of 9 yes to pay the bill.

10. REPORTS FROM CITY OFFICIALS

A). MAYOR MONTHLY PERMIT REPORT FOR DECEMBER 2006. COPY FILE
B). AUDITOR SUBMITS MONTHLY REPORT FOR DECEMBER 2006 COPY FILE
C). MAYOR GIVES STATE OF THE CITY ADDRESS TO COUNCIL
D). MAYOR’S LIST OF APPOINTMENTS TO BOARDS AND COMMISSIONS 0 COPY FILE

COUNCILWOMAN CATAZARO-PERRY I move that we accept the auditor’s report, seconded by Councilman Bryan.

Roll call vote of 9 yes to accept the auditor’s report.

MAYOR CICCHINELLI – gave his State of the City to council a copy has been included for the record.

11. REPORTS OF COMMITTEES

COUNCIL PRESIDENT GAMBER We’ll have committee meetings next Monday the 8th I’m sure everybody will want to get out of here at a reasonable time.

RESOLUTIONS AND REQUESTS OF COUNCIL MEMBERS

13. CALL OF THE CALENDAR - NOTHING

14. THIRD READING ORDINANCES AND RESOLUTIONS

ORDINANCE NO. 174 2006 BY: PARKS AND RECREATION COMMITTEE

COUNCILMAN BRYAN We’ve held Ordinance No. 174 for three readings because we wanted to do it in the proper order and not approved it until after the money was budgeted in our budget tonight. There’s $95,000.00 for these concerts I want to stress that this is not taxpayer money. All of this money is donated by individuals, organizations and corporations.

COUNCILMAN BRYAN moved for passage, seconded by Councilman Maier.

ORDINANCE NO. 174 – 2006 WAS PASSED BY A ROLL CALL VOTE OF 9 YES.

.SECOND READING ORDINANCES AND RESOLUTIONS

ORDINANCE NO. 184 2006 BY: PARKS AND RECREATION COMMITTEE

COUNCILMAN BRYAN This is an ordinance that I allowed to go to second reading so we would have time to discuss it at our work session last week. There wasn’t much discussion however, I spoke to several parties including the Mayor in the meantime and it’s their recollection that when this transaction was made at least the verbal agreement was that the booster club would keep these mineral rights. So the booster club having discovered that that wasn’t what happened when the legal documents were filed has asked to have their mineral rights. I don’t have a problem with it its not a tremendous amount of money and like I say we have people from both sides the administration and the booster club who clearly recall this and I’m going to ask for suspension of the rules and passage tonight.

COUNCIL PRESIDENT GAMBER Mr. Bryan, I have a question assuming this passes what oversight does the Park Department or the city have regarding where any well would be located.

COUNCILMAN BRYAN I don’t believe there is going to be a well. Can anybody from the administration comment on that or do we know?

LAW DIRECTOR STERGIOS - I believe that the well is already drilled and this 8.84 acres or whatever the total acreage 8.84 is subject to a non-drilling oil and gas lease. So it is unitized with another pool of property to make a 40 acre parcel. Another words, there would be no well on this property, but they would get the royalties that are attributable to the 8.84 acres. I think the well is physically either on the school property I think there’s two wells. One’s in the school I don’t know if it’s the parking lot or where it is Chuck may know.

COUNCILMAN MAIER One’s in the upper east parking lot and the other one is in the parking lot right in front of the high school.

LAW DIRECTOR STERGIOS – Right, so this would become part of one of those wells. So there would be no drilling on our property to answer the question.

COUNCILMAN PETERS I need to know if I need to abstain from voting on this because I’m a member of the junior executive board of the booster club?

LAW DIRECTOR STERGIOS – Junior executive board? I think it would be best if you abstained.

COUNCILMAN MAIER I’m also on the executive board for the booster club.

LAW DIRECTOR STERGIOS – I think it would be best if you abstained also.

COUNCIL PRESIDENT GAMBER Mr. Mang?

COUNCILMAN MANG I’m not on the board, but somewhere I’m looking at these Exhibit “D” and it talks about the general warranty deed. The thing that amazes me that no one seemed to know that they were transferring the gas and oil rights. Right in the body of this thing it says “subject to water utility easement the Consumer Ohio Water Company recorded whatever day is subject to non-surface development oil and gas lease to Great Lakes”. I mean what more can we its plain stating in here that all these are being transferred to the city. I guess that’s where I’m lost because the conversation I’ve heard is that well, it wasn’t you know it was an understanding but it wasn’t put in writing. If this Exhibit “D” is correct it sure is heck in writing. I’m not got anything to do whether we do it or we don’t do it the fact is the commentary that I heard all the time was “well, we didn’t know we did that”. Well if Exhibit “D” is right and they signed for it a fellow by the name of Kenneth G. Kemp signed for this thing I don’t know who he is but it sure heck recognize that the water company’s got an easement and there was also something with the gas and oil people. What I just give you is commentary.

COUNCILMAN BRYAN moved to excuse Councilman Peters and Councilman Maier from voting, seconded by Councilwoman Catazaro-Perry.

Roll call vote of 7 yes to excuse Councilman Peters and Councilman Maier.

COUNCILMAN BRYAN moved for suspension of the rules and passage, seconded by Councilman Mang.

The rules were suspended by a roll call vote of 7 yes.

ORDINANCE NO. 184 – 2006 WAS PASSED BY A ROLL CALL VOTE OF 7 YES.

16. NEW AND MISCELLANEOUS BUSINESS

COUNCILWOMAN FERRERO You guys get out your guns we need to go into executive session along with the law director so we can discuss an upcoming possible legal action against the city. Seconded by Councilman Manson.

COUNCILMAN MANG Is this going to require action by council? (No.) Then why don’t we move to adjourn?

LAW DIRECTOR STERGIOS – I think we’ve got to go in before we adjourn.

Roll call vote of 9 yes to adjourn to executive session.

.REMARKS OF DELEGATIONS AND CITIZENS TO MATTERS NOT ON THE AGENDA

18. ADJOURNMENT

COUNCILMAN MAIER I move that we adjourn, seconded by all.

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MARY BETH BAILEY, CLERK,

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GLENN E. GAMBER, PRESIDENT