City of Wellston



City of Wellston

Jackson County, Ohio

Financial Recovery Plan

REVISED: _1-22-16

PASSED: 1-22-16

City of Wellston

Financial Plan

Objectives of the Financial Plan

In accordance with Section 118.06, Ohio Revised Code, the Mayor must submit to the Financial Planning and Supervision Commission (“Commission”) a Financial Plan (“the Plan”) as approved by ordinance or resolution of the Wellston City Council (“City Council”) within 120 days after the first meeting of the Commission. The main objective of the Financial Plan is to eliminate all fiscal emergency conditions which were determined by the Auditor of State pursuant to Sections 118.04. Ohio Revised Code. The Plan identifies the actions to be taken by the City to restore the fiscal integrity of the City. It also serves as a master plan by which all future appropriation measures must comply and directs the correction of issues essential to financial recovery. The Financial Plan may be amended in the same manner as its initial passage.

The matters that need to be addressed by the City of Wellston’s (“the City”) Financial Plan in order to eliminate its fiscal emergency conditions are set forth below:

The Budget Process – Appropriations:

By virtue of Ohio law, the City of Wellston is required to balance its annual operating budget. Accordingly, the City’s administration is committed to address each of the projected deficits through a series of demanding actions designed to increase operating revenues and/or decrease operating expenditures/expenses. The annual appropriations process shall be accomplished for the general fund and any deficit funds through the City’s rolling five-year forecast.

On or before December 31st of each year the City Council shall adopt budget appropriations for the upcoming year that begins January 1st. Failure to do so is in violation of the financial plan and the City shall be subject to remedies and penalties as prescribed in Chapter 118 of the Ohio Revised Code.

In order to accomplish this, the following procedures shall be followed while the City remains in fiscal emergency:

Format for Appropriations. All fund appropriations will be at a minimum passed at the personal service and other object level. The City shall follow the budget process set forth in a Resolution, and additional requirements as follows:

a. On or before September 15th of each year all department heads and all other branches

of government shall submit their departmental budgets to the Mayor. Elected officials not under the Mayor may submit their budgets to Council and copy to the Mayor. The departmental budgets shall provide a detailed narrative explaining the need for the

monies requested. If any department budget includes appropriations from grant dollars

specific to their department, the grant requirements, dollar amount, and grant period

shall be included with the documentation.

b. On or before the third Monday in November, City Council shall complete its budget hearings on the Mayor’s Budget. Within 7 days from passage, the Clerk of City Council shall forward to each member of the Commission the proposed appropriations ordinance resulting from City Council’s budget hearings on the City’s Budget.

c. The Chairman of the Commission and/or the Financial Supervisor shall confer with the

mayor and City Council prior to final budget approval.

d. The Commission’s review of the proposed appropriations ordinance before

December 31st, City Council shall adopt an appropriations ordinance for the upcoming fiscal year that is consistent with all modifications set forth by the Commission. Failure to do so is in violation of the Financial Plan and the City shall be subject to remedies and penalties as prescribed in Chapter 118 of the Ohio Revised Code.

Financial Reports:

The City Auditor shall close the preceding month’s book and reconcile to the banks by the 1st day of the following month. A copy of the financial information for the preceding month shall be sent to the Mayor and Financial Supervisor. The Financial Supervisor will summarize the information and present the summary to each member of the Commission at the Commission meeting.

City of Wellston

Financial Plan

Please find significant assumptions in the following plan which is based on the actions that are to be taken by the City, legal authority and the approximate dates of the commencement and completion as indicated:

| Action: | | Begin | | Completion |

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|Expenditure Reduction Actions: COMPLETED |

|Eliminate six full time equivalent (FTE) positions throughout the Water,| |1st Quarter 2010 | |COMPLETED |

|Sewer, Garbage, Street, and Cemetery Funds, through layoffs or voluntary| | | | |

|separations. This resulted in city-wide savings of $284,249 in 2010, | | | | |

|and $312,606 in subsequent years. | | | | |

|Eliminated one FTE position in the maintenance department by not filling| |2nd Quarter 2010 | |COMPLETED |

|the position of a retiree. This resulted in a savings of $46,158 in | | | | |

|2010 and $36,457 in subsequent years. | | | | |

|Eliminated the position of Sewer Supervisor, | |2nd Quarter 2010 | |COMPLETED |

|Reduced police force by four officers, resulting in a savings of | |1st Quarter 2010 | |COMPLETED |

|$145,477 in 2010 and $215,616 in subsequent years | | | | |

|Eliminated one position in the garbage Department by transferring an | |1st Quarter 2011 | |COMPLETED |

|employee to the Water and Sewer Departments. The entire annual savings | | | | |

|of $54,277 for the Garbage Fund will be offset by increases in the Water| | | | |

|and Sewer Funds. | | | | |

|Close the City’s municipal swimming pool. This is eliminates the need | |2nd Quarter 2010 | |COMPLETED |

|for the General Fund to provide annual support of $16,500. | | | | |

| | | | | |

|Aggressively sought out reduced Health Care Insurance premiums. This | |1st Quarter 2010 | |Completed |

|resulted in city-wide savings of $63,196 in 2010 and an additional | | | | |

|savings of $98,573 in 2011. | | | | |

|Eliminate the Recreation Department. This eliminates the need for the | |2nd Quarter 2010 | |Completed |

|General Fund to provide annual support of $22,200. | | | | |

|Eliminate small maintenance contract for upkeep of various City | |1st Quarter 2011 | |Completed |

|properties. This results in an annual savings of $2,550. | | | | |

|The City Engineer’s salary and benefits will be distributed 40% Water | |3rd Quarter 2010 | |Completed |

|Fund, 40% Sewer Fund, and 20% Street Fund. This will result in a | | | | |

|savings of $74,316 in the General Fund, at a cost to the others. | | | | |

|Eliminated reimbursement for personal cell phone use to non-emergency | |1st Quarter 2011 | |Completed |

|personnel. This results in an annual savings of $2,880 | | | | |

|Eliminate approximately half of the City’s street lights. This will | |3rd Quarter 2010 | |Completed |

|generate annual savings of $47,700. | | | | |

|Ohio Water Development Authority loan payments will be allocated to the | |1st Quarter 2012 | |Completed |

|Sewer Capital Improvement Fund, resulting in an annual savings to the | | | | |

|Sewer Fund of $57,739 through 2016. | | | | |

|The Sewer Capital Fund has a healthy balance and can withstand a planned| | | | |

|decrease of 5%, (from 25% to 20%) which is necessary to change the | | | | |

|payment source through 2016. | | | | |

|There is a need for an increase in the North Water Capital Fund for | |1st quarter 2012 | |Completed |

|future renovation projects. An additional 5%, (from 5% to 10%), of the | | | | |

|monthly revenue shall be deposited into the North Water Capital account | | | | |

|for water projects. | | | | |

|An additional 1 mill levy was placed on the ballot for the Fire | |4th quarter 2012 | |Passed |

|Department. This will increase their revenue by approximately $52,900.00| | | | |

|at 100% collection. | | | | |

|We have placed liens on property totaling $ . . | |1st quarter 2013 | |COMPLETED |

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|Implement $5 Permissive Motor Vehicle Tax per Ohio Revised Code. This | |1st Quarter 2011 | |Completed |

|will result in $22,524 annual revenue, to be credited to the Street | | | | |

|Fund. | | | | |

|Sale of surplus property has generated $7,146 for the General Fund. | |2nd Quarter 2011 | |completed |

|We have changed our policy on impounding cars. If the cars are going to| | 2nd quarter 2012 | |completed |

|come to us as an asset, then we have them parked on our own property. | | | | |

|Before we were being charged per day by the tow truck owners for | | | | |

|impounding the vehicles. This has saved hundreds during a year period. | | | | |

|The City determined that servicing dumpsters was no longer cost | |1st quarter 2011 | |Completed |

|effective and the existing units should be sold. The sale generated | | | | |

|$1010. | | | | |

|Instead of mailing the Consumer Confidence Report, the meter readers | |2nd quarter 2012 | |completed |

|will be hand delivering them as they read. This will save us $928 in | | | | |

|postage. By choosing a different printing source we are saving $347 in| | | | |

|printing. | | | | |

|The Auditor’s office revised the credit card policy for security and | |1st quarter 2010 | |Completed |

|limitation of usage. | | | | |

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|Council determined that the Water Review Board would the sole | |2nd quarter 2010 | |Ongoing |

|responsibility for adjusting any adjustments related to water, sewer, | |****** | |***** |

|and garbage. | |1st quarter 2012 | |Completed |

|The WATER REVIEW BOARD was disbanded by council. All water issues are | |4th quarter 2012 | |Completed. |

|handled in Clerk’s office. | | | | |

|The Ohio Public Works Commission loan payments will be made from the | | | | |

|South Water Capital Fund, resulting in an annual savings to the Water | | | | |

|Fund of $1,881 through 2030. | | | | |

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| | |1st Quarter 2012 | |Ongoing |

|The City is in the process of identifying all water accounts, | |1st Quarter 2012 | |Ongoing |

|installing new meters, completing necessary maintenance and reading all| | | | |

|meters. | | | | |

|The City has begun to hold all customers accountable, is correcting | | | | |

|account errors, and is enforcing the shut-off policy. As a result the | | | | |

|utility revenue is already showing an increase. | | | | |

|The City is in the process of up-grading our meters to be radio-read. | |1st Quarter 2012 | |Ongoing |

|This will enable our meters to be read accurately and in a timely | | | | |

|manner. This will also free up our readers to do work in other | | | | |

|departments of the city. The meter readers will be classified as | | | | |

|“floaters”, which will enable them to be used in other departments. | | | | |

|There will be a 1 mill levy placed on the ballot in May for the | |4th quarter 2012 | |Levy passed in |

|cemetery. This will generate approximately 50,000.00. The cemetery | | | |May of 2013. |

|will be mowed (seasonally) by part time workers. At the rate of $10 per| | | | |

|hour for three part time employees (or the equivalent) at 32 hrs each | | | | |

|per week for 24 weeks. Plus PERS, FICA, WORKERS COMP. Any revenue | | | | |

|left in this fund at the end of the year will be used to offset the | | | | |

|deficit in the cemetery. ORC 118 | | | | |

|The WFD is in the process of developing and establishing a FIRE and EMS | |1st quarter 2014 | |ONGOING |

|Training Academy for the purpose of providing required certified | | | | |

|training for firefighters in our geographical area. It is anticipated | | | | |

|that area fire departments will elect to participate in the WFD | | | | |

|Chartered Academy as opposed to longer commutes to other sites in the | | | | |

|State of Ohio. Based on the number of potential participants, the fire | | | | |

|chief estimates a net revenue of $8000 in 2014. This has been | | | | |

|established and is | | | | |

|Quite successful. | | | | |

|When a customer applies for water all outstanding accounts must be paid | |2nd quarter 2012 | |ongoing |

|in full. We are also cleaning up the ones that have not been done to | | | | |

|date. These accounts total: $276,802.76. This includes 2010, 2011 and | | | | |

|2012. Going back any further is futile. | | | | |

|The city has filed charges for recovery of @ $6,685 as a result of | |2nd quarter 2012 | |completed |

|theft in-office by a former clerk. This amount has been paid and the | | | | |

|accounts have been credited. | | | | |

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|The city has received $15,257.85 in payments on liens placed for old | |4th quarter 2013 | |Ongoing |

|accounts as of 8-2013. We are still working on placing liens on | | | | |

|accounts for past due amounts. As of 11-1-13 all eligible liens have | | | | |

|been placed on old accounts. All old accounts will be reviewed every | | | | |

|three months to keep this up to date. | | | | |

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|Water loss has been reduced, from 58% to 33%. | |2nd quarter 2013 | |ongoing |

|The water and sewer fund will pay rent to the general fund in the amount | | | |

|of $19,200. Per year. The garbage fund will pay $25,200 per year. (This| | | |

|was decided by the finance committee) This will be reviewed each year. | | | |

The city is looking into buying a new ladder fire truck. 1st quarter 2014 COMPLETED

The first payment is not due until 2015. The first

payment would Be made from a carry Over in the FD.

The subsequent Payments would be made from sales

tax for a period of Ten years. The payment is

approximately $20k

| | | | |

The COPS grant was applied for with the stipulation 1st quarter 2015 ongoing

that local funding finance the fourth year. The results

of this application will be given in the month of Sept.

2014. The COPS GRANT was not funded for the year

2015. The general fund will finance the pick up of

That employee for the year 2015. The COPS grant

Will be applied for in 2015 to fund for the following

Three years, with local funding financing the 4th. If

The COPS grants IS received, the gen. fund would

Hold back $20,000 the first three years to pay for

The fourth year as stipulated in the grant. If the

COPS grant is not received, the FT position would

Only be kept if the Gen fund could finance it, if not,

The officer’s position would be eliminated. It is

Also the intention of the Mayor to place a 2 mill

Police Levy on the ballot in the fall of 2015 which,

If Passed, would go into effect in 2016.

________________________________________________________________________________

The City has placed a 2 mill street levy on the ballot. 1st quarter 2014 COMPLETED

This Is in hopes of generating approximately $100K

yrly. Which would be used to apply for a grant to

Repave St Rt 327 in 2018. Also to help with the cost

Of maintaining the city streets. This would include

Cost of materials and a part time worker. The city

Has not had a street levy since 2009. The street

Levy passed by 64%.

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The city has placed a renewal 3.5 Fire Levy on the 1st quarter 2015. COMPLETED

Ballot in Nov. 2014. This levy has never failed. This

Will allow the fire department to continue as it is

Now. The fire levy passed by 64%.

_________________________________________________________________________________

The City will be purchasing the house next to the 4th Quarter 2014 COMPLETED

Office for $14,000. This will come out of the

Kuppenheimer Cap Improvement Fund. This

Property will be used as a parking lot for the

City building.

_________________________________________________________________________________

The City has received the ownership known as 4th quarter 2014 COMPLETED

The Frick Gallagher property, the Depot property

And other property adjacent to the depot (railroad

Tracks). At no cost to the city.

__________________________________________________________________________________

The city has contacted Maximus for a cost allocation 4th quarter 2014 IN PROCESS

System for all departments. This will be started by

The end of the year….2014.

__________________________________________________________________________________

The city has contacted Valuation Engineer 4th quarter 2014 IN PROCESS

For an asset appraisal. This will be started by

The end of the year 2014.

_________________________________________________________________________________

The city has contacted Conway Green for an 4th quarter 2014 IN PROCESS

Estimate for the codification of ordinances.

_________________________________________________________________________________

The finance committee is requesting council 4th quarter 2015 COMPLETED

To place $130,000. In the budget for the year

2015 to pay off the cemetery debt. This would

Only be transferred IF it is not needed to fund

The general fund. This would not be transferred

Until the end of the year.

__________________________________________________________________________________

We have scrapped several old vehicles amounting 4th quarter 2015 COMPLETED

To $2,952.00

________________________________________________________________________________

We have purchased new equipment that will save 4TH quarter 2015 ONGOING

Money in the long run, as opposed to pouring

Money into repairs. Also some of the new equip-

Ment will allow us to do our jobs with less money

In supplies and time spent on the job. Which is

A savings in both catagories.

__________________________________________________________________________________

We are doing safety trainings, which will save 1st quarter ONGOING

Money in lost time and also BWC charges.

__________________________________________________________________________________

In 2011 the total revenue in the water dept was 1st quart. 2012 ONGOING

$2,441,360.56, as of Dec. 31st, 2015 the total rev.

Was $3,125,847.67 which shows an increase of

$684,487.11. This increase will continue as we

Replace around 100 meters that require digging.

________________________________________________________________________________

We are applying for our second $350,000.00 1st quarter 2014 ONGOING

Neighborhood revitalization grant. These grants are helping

Us repair and install new water lines, ada ramps

And fire hydrants….which saves the city money.

_______________________________________________________________________________

In 2009 our total sick leave totaled $ 109,024.37. In ONGOING

2015 it totaled 33,771.11. With a savings of $75,253.26.

_______________________________________________________________________________

In 2009 the total of overtime, sick leave, vacation, comp. ONGOING

Time and personal time totaled $541,136.37. In 2015

The total was $236,321.93. The savings to the city

Was $304,814.44. .

_______________________________________________________________________________

By purchasing new vehicles in many departments ONGOING

the city has saved $29,200.00

In vehicle repairs since 2012.

_______________________________________________________________________________

By purchasing new vehicles in many departments, the ONGOING

City has saved $16,187.34 in fuel costs.

______________________________________________________________________________

In 2016 the following loans will be paid off:

North Water…………$32,500.00

South Water…………$94,675.02

Sewer Cap ……………$57,739.52

____________________________________________________________________________

The city clerk has worked at finding old accounts and 1ST QUARTER 2016 ONGOING

Those that we could not put a lien on are being

Turned over to the Law Director to inquire about

Wage garnishments. These are accounts that

Total $500 or more. She has turned over all of

Those beginning with the letter “A” in the

Amount of $4, 244.27, and will continue through

The alphabet.

____________________________________________________________________________

The administration will be bringing to council for 1ST QUARTER 2016 ONGOING

their Review, the proposal to implement a base

rate for water, sewer and garbage. Which will

enable the city to replace the needed

infrastructure of water and sewer lines.

|An overtime log was developed to track time, materials, and personnel | |1st quarter 2011 | |Completed |

|costs. | |****** | |****** |

|****** | | | | |

|Revisited | |4th quarter | |Continuing |

|In 2009 overtime totaled $237,503.85. In 2015 it totaled $72,237.91. | | | | |

|Savings of $165,175.94 | | | | |

|The city is currently determining if it has excess real property that | |4th Quarter 2012 | |Ongoing |

|can be sold to generate revenue. The financial impact cannot be | | | | |

|determined until the research on available property ids completed. | | | | |

|The Frick-Gallagher property will be added to the list of surplus | | | | |

|properties to liquidate. The old city garage on Broadway has been added| | | | |

|to this list of properties to be sold. | | | | |

City of Wellston

Financial Plan

Assurances of the Financial Plan

1. The City will conform to statutes with respect to tax budgets and appropriation measures.

2. The amount and purpose of any issue of debt obligations will not exceed debt limits supported

By appropriate certification by the City Fiscal Officer and County Auditor.

3. The City will prepare a financial forecast for a five-year period in accordance with the standards

As established by the Auditor of State.

4. The City will address and implement Auditor of State comments from the Report of Accounting

Methods.

5. The City will adhere to staffing levels as defined below. The actual number of fulltime employees may be less than stated whenever part time employees are utilized to fill a vacancy. In the event that part time employees are added to a department, the total expense shall not exceed the cost of the maximum staffing level. Part time employees will be based on “as needed” and also as money is available. It does not guarantee the part time employees 32 hrs a week.

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|Police Chief | | | | |

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|Fire Chief | | | | |

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|FT 75% N Water Supv-25% S Water SUPERVISOR | | | | |

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|45% N Water-45% Sewer Dist-10% Garb (CITY CLERK) | | | | |

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|45% N Water-45% Sewer Dist-10% Garb (ASST. CITY CLERK) | | | | |

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|PT N Water | | | | |

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|50% N Water-50% S Water | | | | |

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|40% N Water-40% N Sewer-20% Street (CITY ENGINEER) | | | | |

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|South Water | | | | |

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|50% Water Dist Supv-50% Sewer Dist SUPERVISOR | | | | |

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|50% Water Dist-50% Sewer Dist | | | | |

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|50% Water Dist-50% Sewer Dist | | | | |

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|3 PT in water, sewer and street | | | | |

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|50% Meter-25% Water Dist-25% Sewer Dist | | | | |

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|North Sewer SUPERVISOR | | | | |

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|North Sewer Employee | | | | |

|North Sewer Employee | | | | |

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|25% Sewer Dist-25% Clerk N Water-10% Garb-20% Mayor Sec-20% Law Dir (SECRETARY) | | | | |

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|50% Water Dist-50% Sewer Dist | | | | |

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|Garbage | | | | |

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|Street | | | | |

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|50% Street Supv-50% Garbage | | | | |

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|Mayor-General | | | | |

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|Auditor-General | | | | |

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|Auditor-General | | | | |

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|Treasurer-General | | | | |

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|Council-General | | | | |

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|Law Director-General | | | | |

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|Service Director-General | | | | |

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Respectfully submitted,

Connie Pelletier

Mayor, City of Wellston

Financial Plan Approvals on: By City of Wellston Council on: ___1-22-16

By Financial Planning and Supervision Commission on: 1-22-16

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