Councilwoman Outlines Alternative

by GalionLive • July 9, 2009 • Life in Galion, News & Views, The Future of Galion • 4 Comments

water3 This morning, Councilwoman Roberta Wade met with members and invited guests of the Galion Area Chamber of Commerce to discuss a counter proposal to the possible water and sewer rate hike scheduled for a July 14 Galion City Council vote. The proposed hike would raise rates almost 100% over a 5-year period, and has been the focus of extensive public discussion over the last several weeks.

Characterizing the situation as a critical one for the economic well-being of the community, Councilwoman Wade first presented a detailed background using City-produced and received documents as references. Saying that “Galion does not have a rate problem, it has an expense problem,” she then shared that the proposal before Council is based solely on a City commissioned study calling for some $40 million in expenditures over a 5-year period, but which has not been analyzed in light of alternative funding sources (including possible debt financing for capital improvements), possible expense reductions, or a careful and studied prioritization of improvements.

In a recent Finance Committee meeting of Galion City Council, several council members had pointed to the fact that the study was conducted by an objective third-party consultant, and that the city had no realistic choice but to follow its recommendations. The July 14 Council meeting is scheduled to take place in the pavilion at Heise Park closest to the football stadium.

Below are details of Councilwoman Wade’s counterproposal shared at this morning’s meeting:

Water Fund

Savings – Source

$1,219,252 – Reduce revenue financed capital projects by using debt financing
$ 863,270 – Reduce projected compensation expenditure; Reduce other projected expenditures
$ 200,000 – Include stimulus money which Galion is receiving but not included in projections; Re-bid capital projects; Prioritize and spread out capital projects; Eliminate capital purchases; Improve efficient of water operations
$951,500 – Eliminate “cost allocation” (the amount taken from the fund and placed in the general revenue fund for city operations)

Sewer Fund

$1,462,430 – Reduce revenue financed capital projects by using debt financing
$ 257,500 – Eliminate revenue financed expenditure for SR 61/Airport project (City has chosen not to pursue this project at this time)
$ 257,427 – Eliminate debt service payments for SR 61/Airport project
$ 987,355 – Reduce projected compensation expenditure; Reduce other projected expenditures
$ 669,000 – Include capacity charges for Westmoor sewer project
$ 400,000 – Include fair estimate of net revenue from Westmoor sewer fees
Re-bid capital projects; Prioritize and spread out capital projects; Eliminate capital purchases; Improve efficient of sewer operations
$ 832,000 – Eliminate “cost allocation” (see above)

galiongirl

Roberta has hit the nail right on the head. It is an expense problem, too many grandiose plans in Galion.

Very little common sense comes from the city leaders and administration.

Galionites have had enough…. more than enough.
Mitzy Carothers

Has anyone taken a walk down their street? How many empty houses do you see? There are six empty houses on my street. These people are not paying for water, sewer, or electric. Now, how many people that are still living on your street are still working 40 hours? How many are unemployed? How many are under employed? Can we really stand for rate increases? I don’t think so. So I propose this, why can’t the city of Galion set up a budget for all the residences in Galion like Columbia Gas has done for years? This would give the city of Galion a more evened out income for the utilities.
Angie Campbell

I wanted to commend our lady council members for standing up for us against the good old boy system. It takes courage and determination and I am grateful we have these ladies on our council. They have a real heart for this community and I hope they are willing to serve for many more years. They have my vote.
Jerry McElhatten

The waste water plant used to accept waste from septic haulers who paid the city for this sevice. This practice was stopped some years ago but could be an added revenue source.
as I understand it the storm water utility was to be a pay as you go utility ( no money in fund / no projects done). Why has the city gov’t
decided to borrow money against future revenue to fund the rest of the Maple Heights project?