City approves funds for use in economic development, administrative funds
Lead Summary
By
Brandy Chandler-brandychandler@gmail.com
The Hillsboro City Council voted Wednesday to create an economic development department within the city's general fund with a percentage of moneys charged back out of the sewer improvement project, despite a Hillsboro resident's objection that the funds were better left in the pockets of area residents.
Council met in a special session Wednesday evening and considered two resolutions: one to increase appropriations in the 207 Fund and establishing an economic development department within the 207 Fund, and one to transfer from the 509 fund to the general fund.
Hillsboro Auditor Gary Lewis previously told The Highland County Press that "There's a certain percentage of the monies we can charge back to our sewer improvement project, and those monies primarily are going back into the general fund," Lewis said. "Those monies can come out and be used for other purposes in order to stimulate growth and that sort of thing. It's to create an economic development department within the revolving loan fund, and that's all. That doesn't mean there's another bureaucratic office."
During the meeting, Hillsboro resident Greg Grant addressed council, and said that with the recent increase to sewer rates, the city did not need to put it toward economic development.
"You're asking for rate increases for the sewer fund," Grant said. "We know that everyone is strapped, but the additional increases are there. My concern is that we take money from the sewer fund, and we take it and run it through the general fund, yet (the city) was telling people, 'We don't have enough money to pay for our sewers and maintenance and capital projects.' Does that send a statement to the public that (the city) is not properly utilizing and not being good stewards of the monies in the sewer fund."
Council is currently considering a resolution that would increase sewer rates by 15 percent over three years.
Grant said that he knew that in total, the percentage that would be taken was not "big dollars" compared to the total sewer project, but, "at this point everybody - city, county, township, whatever - is looking to cut and try to save pennies wherever we can. I'm asking council to consider that as they address and look at things, before you go and ask for me as a taxpayer and user of the city services to reach further into my pockets."
Some of those funds will be used for administrative work that was done by the city to secure funds for the sewer projects that was essential in getting grants. Grant said he understood that would be a good use of the services because that directly related to the sewer project, but that he was concerned about the other ways it might be used.
"To take it and say we want to put it into an economic development fund and do something else with it at this point, is that really a good use of our dollars?" Grand said.
Council president Lee Koogler said that for years administrative costs were "general fund hits" and as times got "more challenging" they have had to ask departments to pay their fair share in balancing costs.
Koogler left the floor open for discussion for council, and there was a very long pause before anyone responded. Council member Rod Daniels eventually questioned administrative assistant Kirby Ellison on what percentage was being set aside for administrative costs on the project. Ellison said it was .75 percent "at this point."
Hillsboro Safety and Service Director Ralph Holt said that every day the administration office has to deal in some way with the sewer project.
Daniels told Grant that he agreed with him to a certain extent on the economic development aspect, but that it wasn't fair for the administrative funds to keep taking the hits.
"I'm always leery when funds go into economic development as far as state and federal government, but I have seen (projects) where some of the things those programs have done were beneficial," Daniels said. "Some of those things were a waste of the taxpayers money. If you make sure that money is spent appropriately, it won't be a waste ... If we can help create jobs with that, that's what we need to do. Because if you don't have jobs, you're not going to be able to pay your (sewer and water) bill."
Council member and utilities committee chairperson Dave Shoemaker said that it was an oversight that administrative fees were not put into the sewer project, and that he knows how much work Ellison does on it.
Council member Peter Pence questioned that the funds were going in under the revolving loan fund.
"Who would have the authority to disburse those monies?" Pence said. "Would it be the revolving loan fund?"
Holt said it would be the revolving loan fund committee and the Mayor of Hillsboro.
Pence asked if there would be a conflict if he voted on the matter since he is a member of that committee. Koogler said he did not see a conflict.
Council voted 6-0 to pass a resolution "establishing an economic development department within the 207 revolving loan fund, designated as Department 419. The auditor is hereby authorized to increase appropriations within the 207 revolving loan fund by $107.766.75, specifically to department 419.
Council also voted 6-0 to pass a resolution authorizing the auditor to make the following transfers: $107.766.75 from the sewer improvement fund to the general fund; and $107,766.75 from the general fund to the revolving loan fund.
Council member Brian Waller was not present at the meeting.
The Hillsboro City Council voted Wednesday to create an economic development department within the city's general fund with a percentage of moneys charged back out of the sewer improvement project, despite a Hillsboro resident's objection that the funds were better left in the pockets of area residents.
Council met in a special session Wednesday evening and considered two resolutions: one to increase appropriations in the 207 Fund and establishing an economic development department within the 207 Fund, and one to transfer from the 509 fund to the general fund.
Hillsboro Auditor Gary Lewis previously told The Highland County Press that "There's a certain percentage of the monies we can charge back to our sewer improvement project, and those monies primarily are going back into the general fund," Lewis said. "Those monies can come out and be used for other purposes in order to stimulate growth and that sort of thing. It's to create an economic development department within the revolving loan fund, and that's all. That doesn't mean there's another bureaucratic office."
During the meeting, Hillsboro resident Greg Grant addressed council, and said that with the recent increase to sewer rates, the city did not need to put it toward economic development.
"You're asking for rate increases for the sewer fund," Grant said. "We know that everyone is strapped, but the additional increases are there. My concern is that we take money from the sewer fund, and we take it and run it through the general fund, yet (the city) was telling people, 'We don't have enough money to pay for our sewers and maintenance and capital projects.' Does that send a statement to the public that (the city) is not properly utilizing and not being good stewards of the monies in the sewer fund."
Council is currently considering a resolution that would increase sewer rates by 15 percent over three years.
Grant said that he knew that in total, the percentage that would be taken was not "big dollars" compared to the total sewer project, but, "at this point everybody - city, county, township, whatever - is looking to cut and try to save pennies wherever we can. I'm asking council to consider that as they address and look at things, before you go and ask for me as a taxpayer and user of the city services to reach further into my pockets."
Some of those funds will be used for administrative work that was done by the city to secure funds for the sewer projects that was essential in getting grants. Grant said he understood that would be a good use of the services because that directly related to the sewer project, but that he was concerned about the other ways it might be used.
"To take it and say we want to put it into an economic development fund and do something else with it at this point, is that really a good use of our dollars?" Grant said.
Council president Lee Koogler said that for years administrative costs were "general fund hits" and as times got "more challenging" they have had to ask departments to pay their fair share in balancing costs.
Koogler left the floor open for discussion for council, and there was a very long pause before anyone responded. Council member Rod Daniels eventually questioned administrative assistant Kirby Ellison on what percentage was being set aside for administrative costs on the project. Ellison said it was .75 percent "at this point."
Hillsboro Safety and Service Director Ralph Holt said that every day the administration office has to deal in some way with the sewer project.
Daniels told Grant that he agreed with him to a certain extent on the economic development aspect, but that it wasn't fair for the administrative funds to keep taking the hits.
"I'm always leery when funds go into economic development as far as state and federal government, but I have seen (projects) where some of the things those programs have done were beneficial," Daniels said. "Some of those things were a waste of the taxpayers money. If you make sure that money is spent appropriately, it won't be a waste ... If we can help create jobs with that, that's what we need to do. Because if you don't have jobs, you're not going to be able to pay your (sewer and water) bill."
Council member and utilities committee chairperson Dave Shoemaker said that it was an oversight that administrative fees were not put into the sewer project, and that he knows how much work Ellison does on it.
Council member Peter Pence questioned that the funds were going in under the revolving loan fund.
"Who would have the authority to disburse those monies?" Pence said. "Would it be the revolving loan fund?"
Holt said it would be the revolving loan fund committee and the Mayor of Hillsboro.
Pence asked if there would be a conflict if he voted on the matter since he is a member of that committee. Koogler said he did not see a conflict.
Council voted 6-0 to pass a resolution "establishing an economic development department within the 207 revolving loan fund, designated as Department 419. The auditor is hereby authorized to increase appropriations within the 207 revolving loan fund by $107,766.75, specifically to department 419.
Council also voted 6-0 to pass a resolution authorizing the auditor to make the following transfers: $107.766.75 from the sewer improvement fund to the general fund; and $107,766.75 from the general fund to the revolving loan fund.
Council member Brian Waller was not present at the meeting.
[[In-content Ad]]