Things Happening Cont.
5. In the Finance Committee there is a proposed ordinance they will establish a debt policy for Pickerington in the future. It will require council approval for staff to deviate from the policy. Of particular interest to the School District taxpayers is a small section on TIFs. In the future the city will require any developer receiving benefits from a TIF to guarantee that bond for the infrastructure improvements. The city has five TIFs currently and I believe only one is even close to paying for itself. For those that do not understand what a TIF is I will try to give a short explanation. This is a process or a scheme for a city to divert the tax dollars for a commercially improved project/property to pay for infrastructure needs. This diversion can be for up to 10 years and up to 75% of the future tax dollars of a property without the school district?’s approval. The idea here was to get some quick money to build say a road and then the property is developed and with the new development the new taxes increase so that in theory the new increased taxes do improve the school?’s situation. However Pickerington has allowed this to go on with no guarantees from the developers and the City Taxpayers are then accepting ALL of the development risk. In the future those that stand to make the big bucks from these investments must take on the risk not the City. This will force any future proposal to be sound developments before we risk ANY public money.
6. The new Council has stopped the huge Waste Water expansion project that we inherited in January 2004. With the permission of the Ohio EPA Pickerington was allowed to run a stress test on the current plant. That test showed that we could probably and safely increase that average flow through the plant up to 1.6 MGD. Currently the approved flow rate is 1.2 MGD. If the Ohio EPA allows Pickerington to amend its NPDES permit then we could pay down most of the current debt on the plant before taking on new debt for a plant expansion. My objection with the massive $11 Million expansion project proposed last year was that it forced the City to sell a MINIMUM of 250 sewer taps every year just to pay the debt service. Hopefully with the EPA approval we will be able to put off expansion a few years to pay down the debt. This will place less pressure on the City to sell sewer taps.
7. As an off shoot of the Service committee, the City is forming a Utilities Commission. We are hopeful that we can get that commission formed in the next couple of months. The purpose of this commission will be to review and recommend utility rates for our users. Much of the current debt on the Sewer and Water plants are under General Obligation bonds. Our goal in the future tied with our new debt policy above will be to convert much of this utility debt into revenue bonds. To convert this debt we must submit a plan to the lenders and we must have sufficient revenue to support these bonds in the future. That means we will probably see some dramatic increases in our water and sewer taps fees very soon.
WE ARE STILL LOOKING FOR CITY RESIDENTS TO SERVE ON THIS COMMISSION.
5. In the Finance Committee there is a proposed ordinance they will establish a debt policy for Pickerington in the future. It will require council approval for staff to deviate from the policy. Of particular interest to the School District taxpayers is a small section on TIFs. In the future the city will require any developer receiving benefits from a TIF to guarantee that bond for the infrastructure improvements. The city has five TIFs currently and I believe only one is even close to paying for itself. For those that do not understand what a TIF is I will try to give a short explanation. This is a process or a scheme for a city to divert the tax dollars for a commercially improved project/property to pay for infrastructure needs. This diversion can be for up to 10 years and up to 75% of the future tax dollars of a property without the school district?’s approval. The idea here was to get some quick money to build say a road and then the property is developed and with the new development the new taxes increase so that in theory the new increased taxes do improve the school?’s situation. However Pickerington has allowed this to go on with no guarantees from the developers and the City Taxpayers are then accepting ALL of the development risk. In the future those that stand to make the big bucks from these investments must take on the risk not the City. This will force any future proposal to be sound developments before we risk ANY public money.
6. The new Council has stopped the huge Waste Water expansion project that we inherited in January 2004. With the permission of the Ohio EPA Pickerington was allowed to run a stress test on the current plant. That test showed that we could probably and safely increase that average flow through the plant up to 1.6 MGD. Currently the approved flow rate is 1.2 MGD. If the Ohio EPA allows Pickerington to amend its NPDES permit then we could pay down most of the current debt on the plant before taking on new debt for a plant expansion. My objection with the massive $11 Million expansion project proposed last year was that it forced the City to sell a MINIMUM of 250 sewer taps every year just to pay the debt service. Hopefully with the EPA approval we will be able to put off expansion a few years to pay down the debt. This will place less pressure on the City to sell sewer taps.
7. As an off shoot of the Service committee, the City is forming a Utilities Commission. We are hopeful that we can get that commission formed in the next couple of months. The purpose of this commission will be to review and recommend utility rates for our users. Much of the current debt on the Sewer and Water plants are under General Obligation bonds. Our goal in the future tied with our new debt policy above will be to convert much of this utility debt into revenue bonds. To convert this debt we must submit a plan to the lenders and we must have sufficient revenue to support these bonds in the future. That means we will probably see some dramatic increases in our water and sewer taps fees very soon.
WE ARE STILL LOOKING FOR CITY RESIDENTS TO SERVE ON THIS COMMISSION.



