Hillsboro City Council OKs amended versions of 2024 financial legislation, 10 other items at special meeting

Hillsboro City Council members approved a dozen ordinances and resolutions, including amended versions of the 2024 budget and fund transfer legislation, during a special meeting Wednesday, Jan. 31.

As previously reported, the regular Hillsboro City Council meeting scheduled for Jan. 11 was canceled due to lack of a quorum, but its agenda was considered in its entirety during the special meeting Jan. 31. 

“This is a special council meeting, but since things came up that required us to try to meet before the end of the month — even though we intended not to meet until February — I decided that we might as well cover everything that we were going to cover in the January meeting,” council president Tom Eichinger said.

All legislation on the agenda was approved by a 7-0 vote, including 7-0 votes to suspend the three-reading rule where applicable.

Council had to approve amendments to the 2024 budget ordinance and fund transfer resolution, due to an error on the legislation authorized in December.

“I’d like to take full responsibility for not presenting the correct numbers at the December meeting,” city auditor Dawson Barreras told council. “Unfortunately, when I presented the numbers, it transferred everything back to the 2023 budget, so the numbers are presented with the exact numbers for 2023.”

According to Barreras, the 2024 budget totals reviewed by the finance committee and discussed at the December 2023 city council meeting were correct. The attachment to the ordinance, and to the fiscal year 2024 fund transfer resolution, had some wrong totals, he said.  

According to the revised ordinance, the city’s budget for 2024 is $20,860,915, not $19,899,599 as previously reported. 

In other finance-related news, an ordinance to adjust compensation for certain non-union city employees was approved. 

“The scales will change from a four-year step raise to ranges for rates of pay,” safety and service director Brianne Abbott said.

With this revision, various positions are being changed to having a pay range, instead of the current ordinance that outlines a “first year, second year, third year and fourth year” pay rate. Those include administrative positions; auditor positions; tax office and utility office positions; water and wastewater licensed operators; and labor pool positions.

A custodian position was also added, at a range of $17.50-$23.

Since pay rates are not being increased annually as outlined in the previous ordinance, it says that “employees will receive increases at the supervisor’s discretion.”

Finance committee chair Mary Stanforth reported that her committee met Jan. 9 to review the ordinance, as she said they recommended suspension of the three-reading rule and passage of the proposal.

“Changes discussed were to change the rates of compensation from step raises to wage ranges for certain city employees and adding the position of custodian,” Stanforth said. “The current custodial contract expires in March. The duties of this position will be light maintenance and cleaning the municipal court, police station and the city building.

“Also discussed was having an annual review of the pay ordinance each fall. The members of the committee agreed.”

However, Stanforth asked administration to “explain to all of us why it’s important” to implement this change “so everybody’s on the same page.” Council member Jo Sanborn also asked if the change would lead to a certain percentage increase.

“It will not change the actual numbers,” Abbott said. “It will just allow to give supervisor discretion to increase that pay, whether it be one year or four years, as they see fit. 

“The main reason for this — and Shawn [Adkins, public works superintendent] can attest to it better than anyone, probably — is we are getting ready to put out for hire for his department for the fourth time because the applicants we're getting are either not qualified, or when we offer them the position, it's $17.50 starting out and they can't take the pay cut. Oftentimes those individuals already either have a CDL, or they come from another agency where they have worked 10 years for the county, so it’s really a lateral shift in that aspect. It’s not fair to start someone out with experience at $17.50, and we can’t get anyone.”

Abbott added that it will also help because “everyone is increasing pay, and we have to be competitive.

“It was a challenge in the day to day, as far as running the city effectively, so that will give us a little leverage, so when we do have a good candidate, we have a little bit of wiggle room,” Abbott said. “If someone is overqualified, we can start out maybe at midrange, or if someone takes on additional responsibilities and they deserve a little bit more, we have the ability to do that.”

Eichinger added that “this is a very typical scenario in most businesses. 

“If you have the opportunity to hire somebody with experience, you need to be able to pay them commensurate with that experience,” Eichinger said. “The current salary ordinance in place absolutely requires that anybody who hires into the city starts at the one-year level. It just basically ties the hands of the city as far as filling positions or getting people that they can keep.”

As previously reported, council voted in November 2022 to allow the city to seek bids from a janitorial “service” instead of an individual, as Abbott said the city believed that could “save money.” 

Council member Brown asked Wednesday why the city was apparently seeking to go back to the previous custodian position by including that in the ordinance.

“The thing that we're lacking is some heavier duties, as far as changing light bulbs, corresponding with HVAC and plumbing and different things like that,” Abbott said. “We haven't made the full decision to hire that out. It's just going to be there in the event that we need to. We may very well stick with a janitorial contract if that's more feasible, but the custodian is being put in to be looked at.”

In other legislation:

• A resolution authorizing the Safety and Service Director to purchase an ADA-accessible playground through the State of Ohio Cooperative Purchasing Program was passed as an emergency, after suspension of the three-reading rule. 

The project has been in the planning stages since 2021, when the city was awarded an initial grant (a NatureWorks grant) to install the playground.

“All the funding sources have been identified,” Abbott said. “We've received several grants, through CDBG, NatureWorks, capital funding and reimbursements, so the city's match for the project is $14,015. 

“We are requesting suspension of the three-reading rule and passage by emergency to allow us to be able to order and install to meet the project completion date, and the completion date is slated for June of 2024.”

The estimate for the project, according to documentation attached to the resolution, is $342,745. Barreras pointed out that thanks to all of the grants, the city is getting that project for only “about $14,000,” and the investment “will allow kids in our community with disabilities to be able to access on a daily basis” this playground.

After approving that resolution, council also voted to approve a related ordinance making supplemental appropriations in the amount of $147,000 in the recreation fund, in order to spend the previously awarded Ohio Department of Natural Resources grant for the playground purchase. 

• Council voted to approve an emergency ordinance amending sections 35.011, 35.105, 35.084, and 35.077 of the Codified Ordinances of the City of Hillsboro pertaining to income tax regulations, in order to comply with Ohio Revised Code changes that took effect in January. 

The new ordinance adds the following language:

— The deadline for “each annual net profit return required to be filed … by a taxpayer that is not an individual” was revised to add: “For tax years ending on or after Jan. 1, 2023, business net profit filers that are on a federal filing extension, the municipal income tax filing deadline by one month, to the 15th day of the 11th month after the end of the taxpayer’s tax year.” 

— Section 35.077 deals with imposition of tax, and the new ordinance adds definitions for “qualifying remote employee or owner,” “qualifying remote work location,” “reporting location” and “qualifying reporting location” as well as several additional provisions.

— Section 35.084 is regarding return and payment of tax. A paragraph about an extension of time for filing returns will be amended to add: “For tax years ending on or after Jan. 1, 2023, the extended due date of the city’s income tax return for a taxpayer that is not an individual shall be the 15th day of the 11th month after the last day of the taxable year to which the return relates.” A new paragraph is also being added to the section regarding extensions. 

• A paragraph is also being added to 35.105, which is the late filing penalty policy. The addition reads: “For tax years ending on or after Jan. 1, 2023, with respect to returns other than estimated income tax returns, the city may impose a penalty not exceeding $25 for each failure to timely file each return, regardless of the liability shown thereon, except that the city shall abate or refund the penalty assessed on a taxpayer’s first failure to timely file a return after the taxpayer files that return.”

In December, council also approved an ordinance amending section 34.079 of the codified ordinances of the City of Hillsboro pertaining to income tax regulations. As discussed in October, the only change was to add “the income of individuals under 18 years of age” under exemptions for the city’s income tax, in response to House Bill 33. 

• After its third reading, council voted 7-0 to approve a resolution to adopt the 2023 version of the City of Hillsboro policy and procedure manual, with no discussion.

Some of the changes include:

— Increasing compensation time accrual from a maximum of 80 hours to 120 hours;

— Updating a section to read that “paid time off will be considered active pay status for employees on call for the purpose of calculating overtime;” and

—Adding language about insurance to read: “City employees are eligible to enroll for insurance benefits 30 days after the month of hire. Benefits will begin the first day of the month following the 30-day waiting period after the month of hire.”

• Council voted 7-0 to suspend the three-reading rule and to pass as an emergency a resolution authorizing the mayor to appoint the City of Hillsboro’s representative to the Paint Creek Joint EMS/Fire District Board.

The resolution was requested as an emergency “to accommodate the timely appointment of the city’s representative on the” Paint Creek board. Their current representative, Brown, is expected to serve another term.

“I have no problem continuing, but if someone else would like to do it to learn and get the experience, by all means, I will support that,” Brown said.

• A resolution authorizing the Safety and Service Director to apply for, accept and enter into an agreement to participate in the 2024 Small Business Recycling Program was approved after suspending the three-reading rule (to meet deadlines).

According to the resolution, this is “a financial assistance program for solid waste, recycling and litter management purposes, administered by RPHF Solid Waste District.” 

• A resolution authorizing participation in the ODOT road salt contract bids awarded in 2024 was also passed after suspension of  the three-reading rule in order to comply with deadlines.

• An ordinance making supplemental appropriations in the amount of $126,212.04 for the Street Department’s Capital Equipment fund was approved. 

•  An ordinance making appropriations transfers in the amount of $80,000 in order to contract out building inspections was also authorized.  

In other discussion:

• In her report, Abbott said the city had a preconstruction meeting with Kelchner, Inc. to discuss the Roberts Lane extension project. For other infrastructure updates, she said the phase three storm sewer projects “is completed with the exception of a few punch list items,” with the North High Street lead line replacement project still on target to start in the spring. 

Abbott reported that the city issued 10 commercial and six residential building permits in December. Five Below is expected to open “in early spring,” while building plans for the Marriott Hotel project “are under review.” 

At Abbott’s request, two items were also placed into council committees for future discussion. Eichinger asked the street and safety committee to consider two-hour parking enforcement in the uptown district and the utilities committee to look into “a citywide waste collection program.”

• Committee chair Greg Maurer reported on the Dec. 20 utilities committee meeting, where topics included upgrading software in 2023 and meter hardware in 2024; lead line remediation; and commercial meters.

• Stanforth asked Eichinger to “place amusement fees back in” the finance committee for further review. 

• Eichinger selected Maurer as president pro tempore for a second consecutive year, after council members were split between nominations for Maurer and Adam Wilkin.

“Since Mr. Maurer had done it last year, I’m going to ask him to continue,” Eichinger said.

• Council received communications from the Ohio Division of Liquor Control for an application for a new liquor license submitted by 1st Stop Inc., as the company is considering building a new store in Hillsboro. With no objections from council, Eichinger said “we'll respond back as we normally do.” 

Also received were an invitation from the Ohio Department of Natural Resources Division of Forestry to submit a “Tree City USA” application and a message from Rob Snavely regarding honors diplomas at Hillsboro High School. 

• At Abbott’s request, council held a 10-minute executive session to consider the dismissal of a public employee or official.