09-24-18 Council Minutes - Laserfiche WebLink

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REGULAR MEETING September 24, 2018 Councilmember Jake Teshka stated, I think what Councilmember Davis is getting at, and what I've heard a lot during this budget cycle is,this body's main responsibility is these sorts of financial decisions. So for us to make this decision based on these maximums makes us kind of uncomfortable. Councilmember Oliver Davis interjected, That is correct. You hit it one hundred percent (100%). And so, therefore, if we could take it and prioritize. The idea of the Zoo getting their needs met, we are not debating that. The issue is in terms of tax dollars,if we have the cash, let's pay it. Since we are going to finance this,what is the shortest option possible that we may adapt things or adjust things to still take care of what we need and then take care of everybody else. That is all. Mr. Rompola replied, I would like to make two (2) points. I think the Controller's Office is well positioned to make that determination for the City. Also, these are being paid from the economic development portion of the Local Income Tax. That is based on the income taxes collected in the community and, yes,while the economy is good those taxes tend to rise. But if the economy drops off, that income tax tends to drop as well. So it is not as level as property taxes have been historically.Again,with working with the Controller's Office, you want to make sure that not only are we looking at priorities and how you spend the money you receive, you also have to be cognizant of the money coming into the City. Mr. Frierson stated, And, as mentioned before,this is not the only obligation that is coming out of the EDIT portion. Working with the Controller's Office, in lieu of other projects coming out and anticipated,the desire is to account for that and make it twenty(20) years. It leaves room for other opportunities as well. Councilmember Jake Teshka stated,We are not doubting the Controller's Office is well positioned to make these decisions. I think Councilmember Davis' concern is that they have been elected to guard the City's finances. Having a better picture would be helpful. Councilmember John Voorde stated, I think the Council also needs to be mindful of the fact that earlier this evening, we said we would like more money for roads, quality of life and neighborhoods. Every time we obligate ourselves to larger bond payments, that means less flexibility in our budget and less options to address other priorities. I like the house financing analogy too. I understand it. Things can get tight sometimes. I respect the fact that this Administration and the Controller's Office has the wherewithal to evaluate the things they would like to do now and likely do in the future and keep their options open so that this Council and the next Council has options.And,if we happen to get lucky enough with a good economy and money comes in greater than expected,we can always pay that bond off early to avoid longer term finance charges. Just like on your house, if we are in a position to make double payments as my ex-wife has done,we can do that.I'm on the side of there being more money for other capital improvements like streets and roads and all those basic services the City is responsible for. Councilmember Oliver Davis stated, I'm at peace. Councilmember Tim Scott stated, I respect what Oliver Davis is saying. However, this decision started with the Park Commissioner Board. It also went through the City and they have a legal obligation. The two (2) gentlemen in front of us also have a legal obligation to not commit to irresponsible bonds. There have been other people looking at this way before it got to us. We are not the sole responsible party in bringing this along. I think it is up to the petitioners and presenters to decide if they want this to be heard the way it is. Again, this is a maximum and a placeholder. We know the interest rate is probably not going to be at six percent(6%)and this Council has done this same thing over the years. It is a placeholder and it is only a maximum. We have to respect the presenter and the petitioners. If they want a vote on this,they need to ask for a vote and I think they have by bringing this forth the way it is written right now. The other point is we can renegotiate lower interest rates down the road.I also agree with Councilmember Voorde that bonds can be paid off earlier. I respect the petitioners and if they want a vote on this, I think we should vote on this tonight. Councilmember Oliver Davis interjected, I respect the petitioners also. I appreciate all wisdoms but we also have a fiduciary responsibility ourselves as elected officials. We have to do that. It is imperative for us to us to challenge you with these questions and to put a fire under you to let you know we are looking at you challenging you. We pay you big bucks to have you come up from 23