The topics are grouped into two categories: Financing for the renovation of the Euclid City Jail complex, and, the extension of the Trash and Lighting Fees.
While they are separate issues, they absolutely linked together. Here is how.
EUCLID CITY JAIL
The current City Jail was obsolete from the moment it opened in 1989. Since that day, the taxpayers of Euclid have lost around 1 million dollars a year on an annual operating basis (see April 24, 2011 post for more details).
Finally a solution is at hand: for about 4.7 million dollars, the City can renovate the jail complex creating a facility that is far more efficient. In other words, fewer corrections officers will be needed meaning a substantial savings for the taxpayers of Euclid. Even though the estimated costs of the project have risen from about 3.2 million to 3.8 million in April, 2013 to now, 4.7 million, the savings are still substantial. Administration estimates indicate that annual savings will be between 700K and 800K per year.
To finance the project the City will sell short term notes, and eventually will roll the notes into longer term debt. Current estimates are that to service the debt will require about 200K per year. Therefore, the jail renovations should be paid for from the operational savings in running the jail.
So, what should be done with the additional savings from a renovated jail?
TRASH AND LIGHTING FEES
In 2010, the Council voted to implement trash and lighting fees to prevent City layoffs. Since then, changes to the State budget have further put a strain on City finances first felt during the recession.
Now, those fees are up for an extension vote again. The Administration is proposing to continue both fees. The trash fee would remain at $9.00 dollars per month ($7.00 for seniors and the disabled). The lighting fee millage is proposed to go up from 1.34 mills to 1.55 mills. The increase in millage is to compensate for the fall in property valuations
COUNCIL'S CONSIDERATION
1) Tax relief for the residents: cut the trash and lighting fees
2) Hire more police, fire, or, other City personnel to enhance services
3) Council could approve more money for road paving, equipment purchases, park and
recreational improvements, etc.
recreational improvements, etc.
4) Finally, Council could allocate the savings to a major redevelopment project such as the Lakefront
Marina Project
Marina Project
Assuming that the City sees the full savings from the jail project, making the right investments will set the course of the City for the next several decades.
THE PRIME CHALLENGE FACING EUCLID
As reported by Moody's in March 2013, "The City's demographics have weakened in recent decades. The City's population has fallen from 71,522 in 1970 to 48,920 in 2010. Data from the American Community Survey ( 2006-2010) showed the City's per capita income and median family income to be at 80.5 % and 82.4% of US levels, respectively. These statistics reflect a decline from Census 2000 data which showed per capita income and median family income to be at 91.1% and 90.5% of the US respectively"
In other words, the City is shrinking and, getting poorer, meaning it is harder and harder to provide services everyone deserves and expects.
WHAT DO I RECOMMEND FOR THE JAIL SAVINGS?
1) Service the debt on the jail renovations (of course).
2) Keep the trash fee at current levels. Keep the lighting fee at the current 1.34 mills. While hardly
a windfall for Euclid Property owners, it does acknowledge the City's improving industrial
economy.
3) The rest of the jail savings I believe should be invested into the Lakefront Marina project. Additional design and engineering work must be completed before actual construction of the breakwaters can begin. But, more importantly, it has been shown time and again that such a lakefront amenity can leverage 10's of millions of dollars in private investment. Such investment would be in new and, renovated housing, restaurants and, will spur retail investment in our downtown. The size of the private investment will generate significant new tax revenues. This will allow for improved City serves throughout the community.
Of course, what I am proposing can be tweaked and modified. But, lets not just settle for the status quo, as, Euclid can not afford that anymore. Let the debates begin!
Executive and Finance Committee Meeting, Wednesday, June 12, 6:30PM., Euclid City Hall
Euclid Pond and Garden Tour,
Saturday and Sunday, June 29 & 30th
Saturday and Sunday, June 29 & 30th
For more information, call 216-289-8598
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