Prepared Comments Made to
NORTH CANTON CITY COUNCIL
June 24, 2013
On January
23, 2013, the Repository ran a story
titled, “North Canton grappling with shrinking revenues.”
The story begins with, “Due to
slackening tax collection, drastic cuts in state aid and the state’s repeal of
the estate tax, the city’s day of reckoning is fast approaching.”
The story continues with: “City
Council is considering fee increases, cuts in services and possibly layoffs of
some city employees as the city faces years of growing deficits….Finance
Director Karen Alger presented Tuesday a proposed 2013 budget to City Council which
shows the city’s estimated spending exceeds revenue by $3.6 million. Of that
shortfall, $1.4 million is the deficit for the general fund budget. By next
year, assuming the state doesn’t further cut aid, the city has to find a way to
raise revenue and cut spending by about $1 million and by significantly more
money in later years.”
How does Ordinance No. 47-13, on
tonight’s agenda, an ordinance to increase the salaries of all eight part-time
elected officials of the City reconcile with financial realities facing the
citizens of North Canton?
Is this Council trying to rush ever
so more quickly to that day of reckoning?
Possible layoffs of City employees
became a reality as seen in a March 13, 2013, Repository story titled, “North Canton lays off fire inspector.”
In the March story, “Mayor Held
cited the city’s financial challenges as the reason for the layoff.”
Can anyone on this Council body
recognize the gravity of North Canton’s financial plight or does personal gain
come ahead of fiduciary responsibilities?
I must say that I was very much
amused at last Monday evening’s Council of the Whole meeting when Law Director
Fox presented his best argument to support an increase in salaries. The
argument was the fact that I, as a member of City Council in 2002, over eleven
years ago, had urged a greater salary increase than what was proposed at that
time.
Is this body now agreeing that my
reasoning for voting NO on the 2002 salary increase was in fact correct? And
why is our newly appointed full-time Law Director presenting an argument on
behalf of City Council for a salary increase? This is not the roll for a City Law
Director in any municipality under any circumstances.
If anyone wants to revisit the
discussion in 2002 for a salary increase for the City’s part-time elected
officials, let me refresh your memory. In 2002, the City had over $18.0 million
in reserves, was in an extremely sound financial position and future prospects were
good, so good that everyone on City Council, except me, voted to spend $4.2
million the very next year for Arrowhead Golf Course in 2003.
As each of you should be very
aware, the loss of the Hoover Company along with more recent revenue losses described
above continue to take a toll on city finances. Reserves are a distant memory
and probably will never materialize again.
I do not think it is a coincidence
that the proposed salary increase being requested for part-time elected officials
is coming at the same time that the Ohio Public Employee Retirement System (OPERS)
is increasing the required minimum monthly salary to $600 per month to continue
to qualify for full-service credit for retirement.
Drawing a pension for serving as a
council member is an added cost to city taxpayers and probably is a total
unknown to most city residents. The proposed salary increases totaling $20,100 will
also result in an increase in annual pension costs borne by the taxpayers of $2,814.
Given North Canton’s strained financial
condition and dismal financial prospects into the future, I would urge this
council to forgo a salary increase. Hopefully you will do your fiduciary duty
and not increase the financial strain on the city and its taxpayers.
In the alternative I would suggest
that legislation be drawn up to keep a public record of attendance of council
members at council meetings and furthermore limit payment for meetings not
attended to two meetings per year. Absences by members at City Council meetings
have mushroomed out of control and the public needs a mechanism to track
attendance by their elected officials.
The statement in the Repository story of January 23 lays out
a roadmap for North Canton. “…the city
has to find a way to raise revenue and cut spending by about $1 million and by
significantly more money in later years.”
Raising salaries of part-time
elected officials so they can continue to qualify for retirement credit under
the Ohio Personnel Retirement System is not going to put the city on a fiscally
responsible path.
Remember, it is all about serving
your community. Vote NO on Ordinance No. 47-13.
Thank you,
Chuck Osborne
City of North Canton
