Council, mayor discuss cable fees
Lead Summary
By
Caitlin Forsha-crforsha@gmail.com
Hillsboro City Council members and city administration engaged in a debate over increasing the franchise fees in the city's contract with Time Warner Cable from three to five percent at Monday evening's January council meeting, before voting to approve the legislation.
In the mayor's report to council, Hillsboro Mayor Drew Hastings said that he thought it was "important" to consider increasing the franchise fee for Time Warner Cable by two percent for an added source of revenue to the city. Hastings said that his administration has been searching for ways to increase existing revenue.
As reported last week by The Highland County Press, the city mayor's office increased department spending 40 percent in a span of one year.
"We've been so concerned with expenses over the last year," Hastings said. "I think it's also important to take a look at revenue."
Later in the meeting, council heard the first reading of the Time Warner Cable ordinance. The city's original contract with the cable company states that the city can charge up to a five-percent fee; however, the city has been charging "three percent of gross revenues as established in Ordinance Section 112.22A, amended on May 8, 1985."
"After speaking with the law director and the mayor, it is my understanding the city has had the ability to increase it to five percent all these years and has not done so," Hillsboro City Council President Lee Koogler said. "If we do increase it from three to five percent, it would bring in roughly an additional revenue of $37,000 per year."
"Will [Time Warner Cable] pass those same increases onto our constituents, though?" council member Rod Daniels asked.
"We've had this particular contract in place since 1998 and have never increased our fees to them, but have you ever gotten an increase in your cable bill since 1998?" Hastings asked. "I would ask that they not pass this on to the customers, but this entire contract expires May 2013, so what I'm trying to do is set the stage to take the five percent now."
Hastings said that the contract states that all city buildings get free cable television service; however, due to the relocation of the administration building, police department, fire department and the schools since 1998, this was eventually overlooked. The mayor said that he hoped to "recoup" some of the thousands of dollars the city has spent with Time Warner Cable over the years.
"Back in 1998, there really wasn't data, or internet, charges, per se," Hastings said. "We not only want the cable television, but we should get internet services, too … That would save the city $90,000, maybe."
Daniels said he feared the increase in fees to Time Warner is "a way of taxing individuals without passing higher taxes."
"The consumer ends up paying more out of pocket, and it's going through a third party," Daniels said. "If there was a way we could guarantee that they didn't pass the charges onto the constituents, then it would be great for the city.
"But if we're going to increase it and they're going to pass it on to the constituents, it's no different than us increasing taxes … but we're doing it through a third party, so it doesn't look like we're the bad guys."
Sitting Hillsboro Safety and Service Director Richard Giroux said that there was no guarantee that Time Warner Cable would raise charges to customers, but that the money would be "a lot to [the city] but a drop in the ocean to [Time Warner]."
Hastings added that his administration would also fight on behalf of Time Warner Cable customers if they see an increase in fees.
Council member Bill Alexander brought and discussed a copy of his most recent Time Warner Cable bill and said that he is seeing an increase in his rate, and that among the line items on his bill was a $3.30 franchise fee.
"I don't know if the $3.30 is what Hillsboro is collecting," Alexander said.
Giroux responded that Time Warner Cable may be "charging a maximum franchise fee," which would be five percent, of which the city is only receiving three percent.
Alexander also questioned whether the contract truly allowed for a five-percent fee. Hillsboro City Law Director Fred Beery confirmed that it did and that he is "prepared to argue on behalf of the city" that they are entitled to the five-percent fee.
Koogler asked council for a motion for action on the ordinance.
Council member Dave Shoemaker moved to approve and adopt the ordinance, which was passed by a 4-1 vote, with Daniels dissenting.
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Other items in the mayor's report included the following:
• A recent silent auction, selling unwanted items from city administration buildings, brought in between $1,300 and $1,400 for the city.
• Union negotiations with AFSCME, IAFF and FOP are ongoing.
• Giroux has overseen revisions to the city personnel manual.
• City administration has been looking at the "vacant property problem" in Hillsboro, as Hastings stated that vacant, unattended properties can be a potential fire hazard.
• Hastings discussed an issue with "water hammering," increased pressure in water lines that can be caused or worsened by the improper shutting-off of fire hydrants.
"We've had this happen numerous times in the last few months," Hastings said, adding that discussion and, if necessary, instruction on proper water hydrant usage will take place with the local fire departments in the near future.
• After receiving comments from the public, Hastings said the traffic light at the intersection of Willettsville Pike, Oak Street and West Main Street, the removal of which had been proposed, will remain in place. He added that the response from removing the light at Springlake Avenue and North High Street (near Wendy's) has primarily been positive. Hastings also said that the city is looking at other ways to promote traffic flow, including adding a turn signal at the North High Street/Harry Sauner Road intersection (on the Highland Plaza side).
After hearing brief remarks from Giroux, Hillsboro City Auditor Gary Lewis presented the year-to-date fund report to council.
"As we all know, 2012 was a rough year financially," Lewis said. "I am pleased to report, however, that we have made some progress."
Lewis reported that he had previously predicted an "unacceptable" year-ending unencumbered balance of $305,000 and carryover of $415,000. However, due to an unexpected jump in revenue and drop in expenses, as well as action taken by city council, the numbers increased to a carryover of $695,295 with an unencumbered balance of $509,004.
"The overwhelming factor in the final numbers of 2012 was council's actions earlier in the year that reduced our expenses, and I do want to acknowledge those actions and thank you for your efforts in doing so," Lewis said.
"I do want to extend this as somewhat of a warning, though. Cash flow will probably be a problem."
Lewis also shared a summary of Ordinance 07-08. The ordinance led to an $8 surcharge on city residents' sewer bill, 54 percent of which goes toward sewer debt and 46 percent of which goes toward sewer improvement, Lewis said. The ordinance resulted in approximately $20,000 in monthly revenue for the city.
In other action:
• Council voted 5-0 to excuse their absences of members Peter Pence and Brian Waller, who were not in attendance due to personal and/or family illnesses.
• Council passed (5-0) an emergency resolution for preliminary approval to repair an abutment on the bridge on U.S. 62 North (between Southern State Community College and the Hi-TEC Center), which will be conducted by the Ohio Department of Transportation.
• Council also heard, by title only, an ordinance on vacating the alley behind the ODOT building in the city of Hillsboro, which Koogler explained.
The ordinance to close the alley behind the ODOT building, which was discussed at the December meeting, led to a debate over whether the city or county owned the alley.
"The bottom line is, there is a thing in the law called a quitclaim deed, which is used to resolve a title issue without anybody saying that they necessarily own it, they're just giving away what interest they have," Koogler said. "The legislation before you is essentially a quitclaim deed."
Council voted, 5-0 to suspend the three-reading rule and to approve and adopt the ordinance.
In the mayor's report to council, Hillsboro Mayor Drew Hastings said that he thought it was "important" to consider increasing the franchise fee for Time Warner Cable by two percent for an added source of revenue to the city. Hastings said that his administration has been searching for ways to increase existing revenue.
As reported last week by The Highland County Press, the city mayor's office increased department spending 40 percent in a span of one year.
"We've been so concerned with expenses over the last year," Hastings said. "I think it's also important to take a look at revenue."
Later in the meeting, council heard the first reading of the Time Warner Cable ordinance. The city's original contract with the cable company states that the city can charge up to a five-percent fee; however, the city has been charging "three percent of gross revenues as established in Ordinance Section 112.22A, amended on May 8, 1985."
"After speaking with the law director and the mayor, it is my understanding the city has had the ability to increase it to five percent all these years and has not done so," Hillsboro City Council President Lee Koogler said. "If we do increase it from three to five percent, it would bring in roughly an additional revenue of $37,000 per year."
"Will [Time Warner Cable] pass those same increases onto our constituents, though?" council member Rod Daniels asked.
"We've had this particular contract in place since 1998 and have never increased our fees to them, but have you ever gotten an increase in your cable bill since 1998?" Hastings asked. "I would ask that they not pass this on to the customers, but this entire contract expires May 2013, so what I'm trying to do is set the stage to take the five percent now."
Hastings said that the contract states that all city buildings get free cable television service; however, due to the relocation of the administration building, police department, fire department and the schools since 1998, this was eventually overlooked. The mayor said that he hoped to "recoup" some of the thousands of dollars the city has spent with Time Warner Cable over the years.
"Back in 1998, there really wasn't data, or internet, charges, per se," Hastings said. "We not only want the cable television, but we should get internet services, too … That would save the city $90,000, maybe."
Daniels said he feared the increase in fees to Time Warner is "a way of taxing individuals without passing higher taxes."
"The consumer ends up paying more out of pocket, and it's going through a third party," Daniels said. "If there was a way we could guarantee that they didn't pass the charges onto the constituents, then it would be great for the city.
"But if we're going to increase it and they're going to pass it on to the constituents, it's no different than us increasing taxes … but we're doing it through a third party, so it doesn't look like we're the bad guys."
Sitting Hillsboro Safety and Service Director Richard Giroux said that there was no guarantee that Time Warner Cable would raise charges to customers, but that the money would be "a lot to [the city] but a drop in the ocean to [Time Warner]."
Hastings added that his administration would also fight on behalf of Time Warner Cable customers if they see an increase in fees.
Council member Bill Alexander brought and discussed a copy of his most recent Time Warner Cable bill and said that he is seeing an increase in his rate, and that among the line items on his bill was a $3.30 franchise fee.
"I don't know if the $3.30 is what Hillsboro is collecting," Alexander said.
Giroux responded that Time Warner Cable may be "charging a maximum franchise fee," which would be five percent, of which the city is only receiving three percent.
Alexander also questioned whether the contract truly allowed for a five-percent fee. Hillsboro City Law Director Fred Beery confirmed that it did and that he is "prepared to argue on behalf of the city" that they are entitled to the five-percent fee.
Koogler asked council for a motion for action on the ordinance.
Council member Dave Shoemaker moved to approve and adopt the ordinance, which was passed by a 4-1 vote, with Daniels dissenting.
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Other items in the mayor's report included the following:
• A recent silent auction, selling unwanted items from city administration buildings, brought in between $1,300 and $1,400 for the city.
• Union negotiations with AFSCME, IAFF and FOP are ongoing.
• Giroux has overseen revisions to the city personnel manual.
• City administration has been looking at the "vacant property problem" in Hillsboro, as Hastings stated that vacant, unattended properties can be a potential fire hazard.
• Hastings discussed an issue with "water hammering," increased pressure in water lines that can be caused or worsened by the improper shutting-off of fire hydrants.
"We've had this happen numerous times in the last few months," Hastings said, adding that discussion and, if necessary, instruction on proper water hydrant usage will take place with the local fire departments in the near future.
• After receiving comments from the public, Hastings said the traffic light at the intersection of Willettsville Pike, Oak Street and West Main Street, the removal of which had been proposed, will remain in place. He added that the response from removing the light at Springlake Avenue and North High Street (near Wendy's) has primarily been positive. Hastings also said that the city is looking at other ways to promote traffic flow, including adding a turn signal at the North High Street/Harry Sauner Road intersection (on the Highland Plaza side).
After hearing brief remarks from Giroux, Hillsboro City Auditor Gary Lewis presented the year-to-date fund report to council.
"As we all know, 2012 was a rough year financially," Lewis said. "I am pleased to report, however, that we have made some progress."
Lewis reported that he had previously predicted an "unacceptable" year-ending unencumbered balance of $305,000 and carryover of $415,000. However, due to an unexpected jump in revenue and drop in expenses, as well as action taken by city council, the numbers increased to a carryover of $695,295 with an unencumbered balance of $509,004.
"The overwhelming factor in the final numbers of 2012 was council's actions earlier in the year that reduced our expenses, and I do want to acknowledge those actions and thank you for your efforts in doing so," Lewis said.
"I do want to extend this as somewhat of a warning, though. Cash flow will probably be a problem."
Lewis also shared a summary of Ordinance 07-08. The ordinance led to an $8 surcharge on city residents' sewer bill, 54 percent of which goes toward sewer debt and 46 percent of which goes toward sewer improvement, Lewis said. The ordinance resulted in approximately $20,000 in monthly revenue for the city.
In other action:
• Council voted 5-0 to excuse their absences of members Peter Pence and Brian Waller, who were not in attendance due to personal and/or family illnesses.
• Council passed (5-0) an emergency resolution for preliminary approval to repair an abutment on the bridge on U.S. 62 North (between Southern State Community College and the Hi-TEC Center), which will be conducted by the Ohio Department of Transportation.
• Council also heard, by title only, an ordinance on vacating the alley behind the ODOT building in the city of Hillsboro, which Koogler explained.
The ordinance to close the alley behind the ODOT building, which was discussed at the December meeting, led to a debate over whether the city or county owned the alley.
"The bottom line is, there is a thing in the law called a quitclaim deed, which is used to resolve a title issue without anybody saying that they necessarily own it, they're just giving away what interest they have," Koogler said. "The legislation before you is essentially a quitclaim deed."
Council voted, 5-0 to suspend the three-reading rule and to approve and adopt the ordinance.