Prepared Comments Made To
NORTH CANTON CITY COUNCIL
February 9, 2004
The recent discussions regarding economic development in North Canton and who will head the city’s economic development efforts has been a very hot topic over the last few months.
One of the most important reasons that a municipality works to foster economic growth is to create a revenue stream from the income taxes and property taxes that businesses generate that are used to support city services.
But, long before any efforts are made toward economic development, a municipality should be making the most of its existing revenue collections and this is not being done in North Canton.
Two items were discussed last week that have me wondering if anybody is minding the store here in North Canton. I am talking about the discussions regarding sewer rates and water rates.
Sewer rates in this community have not been adjusted since 1997 in spite of the fact that the county has raised their rates charged to North Canton three times in that span of time ( 4.03% in 2000, 8.74% the next year in 2001 and a 11.77% increase just recently approved by the Stark County Commissioners).
The statement last Monday night by the Director of Finance that this city has had to forgo sewer projects this year because there are no funds to pay for these projects is about the saddest thing I have ever heard. And I am sure even more disheartening to the families who experienced flooding and sewer backups last year. I am estimating that North Canton has missed out on close to $500,000 on uncollected revenue, had sewer rates kept pace with what the MSD is charging the City of North Canton. These are vitally needed funds needed for sewer infrastructure improvements.
Who is in charge of leading this city? Mayor Rice, I think the chain of command leads to you but I am sure you will use the excuse you have used in the past and say it is a function of council. Another missed opportunity for North Canton.
Water rates were another issue that was discussed last week. I was so amused last week when Ward One Councilman, Mr. Foltz, said he might support a water rate increase if the increase was kept to either a nickel or a dime. I might point out to you Mr. Foltz that council unanimously voted to give each of the city’s labor unions a 3.8 percent pay increase recently and that if you adjust the city’s water rates at the same rate of 3.8 percent, that the increase in water rates would be nearly eleven cents.
Has anyone ever calculated the revenue that was lost by this city over the sixteen years that water rates remained unchanged (1984 – 2000)? If anybody ever wondered why the city had to borrow the entire $11 million dollars for the upgrade and expansion of the city’s water treatment plant, they now know that undercharging for city services did not benefit the citizens of North Canton in the long run. Water and sewer rates must be set so that North Canton is not always fiscally, playing catch-up. This is what it has been doing for a long time.
Better setting of rates for city services will allow the city to forgo the need to drain funds from either the general fund or the rainy day fund and with some future planning, allow North Canton to move closer to plans for a new safety center.
Getting back to economic development, that I mentioned earlier, I would just like to say that given the background of North Canton’s new City Administrator, I believe that the City Administrator should also handle the role of the city’s Economic Development Director. Given that Mr. Miller has headed up a city of 80,000 plus and now finds himself running a city that is a quarter of that size, I believe he is more than capable of handling that job as well.
And finally, I have to say that I am disappointed that council’s efforts to get answers from Mayor Rice have continued to be brushed aside. With the unanimous vote by council last week to confirm Mr. Miller, it appears that Mayor Rice will not be accountable for his actions that have been described by council members Kiesling, Peters and Lindower in the press as “reckless and impulsive.”
Mr. Rice, I would like an answer to Mr. Peter’s question that he has asked twice in this council. “What direction were we headed for before and what direction are you proposing now?”
