SHOW ME THE MONEY … Former Swanton Village Council member Jeff Pilliod questions Mayor Neil Toeppe and current council members about the cost of proposed sewer separation and Water Resource Recovery Facility during Monday’s meeting. (PHOTO BY JESSE DAVIS / THE VILLAGE REPORTER)
By: Jesse Davis
Two weeks after Swanton Village Council members wrestled with burgeoning project costs, the continued financial status of the village again led discussion, to the detriment of one of those projects.
Finance Director Holden Benfield reported to the council that the village is unable to sustain the fiscal impact of improvements to its Water Resource Recovery Facility at this time.
The combined sewer separation project will continue forward, as its completion has been mandated by the Ohio Environmental Protection Agency.
“As far as my estimation our primary checking account is gaining slightly each month. Adding on too many loan payments or other additional expenses may cause it to begin dropping if measures aren’t taken to increase revenue accordingly,” Benfield said.
He said the sewer separation project is only possible “as long as we pay attention to” the ongoing costs.
“Unfortunately, the (WRRF) headworks project is going to have to take a back seat,” Village Administrator Shannon Shulters said.
“We’ll get through the engineering and design phase of it, but the construction phase is gonna have to be put on hold.”
Council members later pressed Benfield on the village’s ongoing account balance, which he reported is usually around $5.2 million with some occasional dips to as low as $4 million depending on cash flow.
“I think we ought to look into … taking $4 (million) of that $5 million and investing it in a higher interest rate instrument somewhere,” Council Member David Pilliod said.
“Short-term interest rates remain relatively high, and obviously we wouldn’t lock them up in any long-term instrument.”
Benfield said an investment like that was an option but recommended against using so much of the general fund for it.
He explained part of the issue is that payments on certain types of loans used by the village for municipal projects don’t start coming due for more than a year, so the monthly burden on the bank accounts are not static.
“I would want to keep a healthy skepticism as to how much we would want to pull out of there to invest, so even keeping just $3 million in there as a blanket cover to protect ourselves, I think, would be a good starting point,” Benfield said.
One option discussed was moving a portion of the general fund into a money market account with Fifth Third Bank where it would earn 5.4% even with them actively using the balance so long as the total balance remained above $2.5 million.
Benfield said the current checking account which holds the $5 million earns roughly $600 or less per month in interest.
According to Shulters, such a plan would take approximately 6 months to set up.
“I just hate to sit on a chunk of money and not do anything with it for the Village,” Council Member Derek Kania said.
Former council member Jeff Pilliod spoke during the public comment period at the end of the meeting, asking questions about the causes behind the reason for some of the work in the WRRF period and discussing efforts made to meet Ohio EPA requirements during his time on the council.
“I got a little concerned at the last council meeting when I started hearing $7 million for the wastewater plant, $4 million for the water plant, and then another $4 million for the sewer separation project,” he said.
He wanted to be sure that preventative maintenance and community efforts had been completed in order to mitigate some of the problems prior to the necessity of the project. Shulters assured him they had, and provided examples.
OTHER BUSINESS
– The Council went into executive session after regular business to discuss the “potential hiring of a police chief” as the three finalists for the position had been interviewed again since the last council meeting.
– The Council approved the consideration of the rail viewing park as a village park as opposed to leasing the property to the Swanton Historical Society. The park drew concerns on both sides from council members and attendees and was only approved after it was assured that no actual action on the project would occur without further action from the council as well as public hearings.
– The Council authorized applications to the TC Energy Build Strong Program and the Firehouse Subs Public Safety Foundation for grants of $5,000 and $35,000, respectively.
– The Council approved assessments of $15 on all properties for leaf collection and $32 on all properties for street lighting.
– The Council approved an agreement with Swan Creek Township for snow removal and salt on properties where the village and the township overlap.
– The Council approved $80,000 in appropriations related to costs already paid for WRRF repairs and maintenance, repairs to police department vehicles, and Veterans’ Day banners.
– Shulters reported the village’s bulk drop-off event was successful and that a fourth dumpster was required. She gave a reminder that that Republic offers quarterly bulk pick-up at residents’ homes if requested.
– Shulters reported residents may notice their water becoming cloudy as the village completes hydrant flushing.
Jesse can be reached at publisher@thevillagereporter.com
