Safety Director Philip Doce 440-204-2011 Service Dizeetor Robert Gilchrist 440-204-2011 ‘Bulding Electrical Richard Klinar 440-204-2085 Building Maintenance Robert Evant 440-204-2089 Commsnity Dev. 440-204-2020 Engincesing Dept Jim Reagan “440-204-2003 Bice Dept Chief Tom Browa 440-204-2220 Parks & Recreation 440-244-9000 Police Dept. (Chief Cl Rivera 440-204-2103 Steet Dept Chuck Camera 440.244.4294 Uslites Dept. Corey Timko +40-204-2270 Thee ierats EO py, Mayor August 11, 2010 Lorain City Council 200 West Erie Ave., 1% Floor Lorain, OH 44052 Dear Members of Council, Pursuant to the provisions of Ohio Revised Code Section 731.27, | hereby disapprove, veto and return Ordinance No. 119-10. The reasons are as follows: The Administration and Council collaboratively brought forward plans to address the financial health and stabilty of the City. Those plans included deficit elimination, increased revenue and the creation of a General Reserve Balance Fund. Ordinance 45-10 (Rainy Day Fund) calls for annual funding over four (4) years to reach a balance of 1 milion dollars and a fund replacement provision should the fund be needed to supplement the budget due to revenue shortfalls. This is a financially sound plan to ensure stability in Lorain Additionally, Lorain Treasurer Karen Shawver has requested Council's authority to utilize the City of Cleveland (CGA) to assist in the collection of delinquent tax accounts. Again, this is a sound plan to ensure identification and collection of all tax revenue due. This revenue is part of revenue estimates submitted as part of the 2010 budget. CCA only becomes the collection method not an additional revenue source. Therefore, | feel it is contrary to the financial recovery plan set forth by this ‘Administration and Council, to designate additional funds above the $25,000 budgeted by Council to fund the Rainy Day Fund in 2010. | also am concerned that under the provisions of Ordinance #45-10, if this revenue were to be used to supplement a revenue shortfall in the 2010 budget, Council would need to appropriate to the Rainy Day Fund, in 2011, $250,000 plus any money used from the Rainy Day Fund in 2010. This would create an unnecessary hardship to the 2011 budget | would request Council consider passage of emergency legislation at its first meeting in September authorizing the Treasurer to enter into the agreement with CCA without the Rainy Day provision. 1 believe Council's intentions can be achieved by not appropriating any additional monies collected through CCA until ater in the year, thus having a clear picture of revenue actually collected. Together, we have a sound plan to make Lorain financially sound and restore vital services. This plan will provide residents a level of service to expect and not subject to drastic changes due to revenue shifts. We owe it to our citizens to follow this recovery plan Sincerely, AM aol. Tony Krasienko, Mayor City of Lorain, Ohio TK 200 West Fie Ave,, Lorain, Ohio 44052 / Phone: 440.204.2002 / Fax: 440-246-2276 sonncityoflonsin org