With a bond debt in excess of 65 million dollars, as the city moves into 2011, 2012, 2013 and 2014, should the Council establish a "Bond Debt Limit" based on the projected annual revenue in the year the bond debt is incurred?

"According to Joe Dubovec, the city's Finance Director,... cuts will be needed to counteract a loss in revenue, or the city could dip into cash reserves. He characterized this second option as a "double edged sword" as the city's three month operating expense reserve plays a major factor in its AAA rating--the highest possible--from Moody's Investors Service."
(SUN STAR-COURIER 3/31/2011)

ZUBEK OBSERVATION: Perhaps the chicken has come home to roost.  With bond indebtedness in excess of 65 million maintaining the city's AAA rating is crucial. For further background information click on INSIGHT: Budget/Moodys Report.

2011 will  provide the opportunity for the citizens of Strongsville, Ohio to change the political landscape.  Just as the state and national election of 2010 changed the landscape, the 2011 municipal election will determine if the citizens want to continue to expand the bond debt above 65 million plus and retain Council Representatives that have supported the expanded debt.

We will elect a Mayor, 4 Ward Council Representatives and 2 School Board Members.

In addition various, as yet announced, issues will be on the fall ballot.

On Friday, 9/17/2010 Hinckley real estate developer David T. Terry pleaded guilty to bribing Strongsville Councilman at Large  Patrick Coyne who has not been charged or identified by name in the charges.

Terry admitted giving Coyne $20,000 in exchange for using his political influence to help Terry.

Over the last decade and more Councilman Coyne has held the position of Council President, Chairman of several key council committees and council representative on the Planning Commission.

If further investigated, what will be revealed ?.

During the Council meeting of June 7, 2010 Resolution No. 2010-080 BY: Mayor Perciak and ALL Member of Council ....."A RESOLUTION AUTHORZIING THE MAYOR TO ADVERTISE FOR BIDS........IN CONNECTION WITH THE PAVEMENT REHABILITATION PROGRAM FOR 2010... Section 2. reads in part..."funds...have been appropriated and shall be paid from the General Capital Improvement Fund and Motor Vehicle Fund..."

In a city that has stressed " a no new hiring policy" and a limited employee replacement  policy when was the PAVEMENT REHABILITATION PROGRAM FOR 2010 created and does the P H P 2010 have anything to do with the hiring of an outside forensic accountant, who it is reported, found that the city has been basically sitting on a $ 8 to 10 million dollar surplus since 2003...

While a reserve fund is necessary, Moody's needs to be listened too, and roads need to be repaired, if there is now or has been a reserve fund of this magnitude the Council Finance Committee Chair has an obligation to his constituency to call a public meeting and address these issues with the Administration's Director of Finance sooner then later.

Is it a coincidence that within weeks of Strongsville City Council's vote to make the "temporary income tax credit reduction" permanent Moody's Investment Services recalibrated its' scoring system for municipalities and Strongsville moved too a Aaa rating.
We all need to thank those Strongsville residents paying that "extra permanent tax" for the good job that the Administration is doing.

In other Moody's news "Bloomberg News" on May 11, 2010 reported that Moody's may be sued by the Security and Exchange Commission for filing false and misleading descriptions of its credit-rating policies.

Your FICA score determines the kind of loans you can secure and the interest cost to be charged on that debt. The Strongsville Administration has presented the Moody's Aa1 rating as a positive reflection on the City and it is. The problem is that the Administration with the cooperation of a willing Council have since 2004 increased the OUTSTANDING GENERAL OBLIGATION DEBT to $61.9  MILLION.

Annual payment on this debt, with the Aa1 rating, is about $2.5 million. Moody's report of Nov. 10, 2009 outlines the administrative and legislative action taken to maintain the Aa1 rating.

Council leadership stated the the "income tax credit reduction ordinance" was necessary too maintain City services. Council leadership was correct in making that observation; however, what was and is not mentioned is that this Administration and Council have since 2004 brought us to the point of having $61.9 MILLION OUTSTANDING DEBT that must be paid off. During Council's public review of the 2010 budget there was no discussion of the actions that needed to be taken in 2010 or beyond because of the $61.9 MILLION debt.

As of the beginning of 2010 this Council has passed legislation to make the "income tax credit reduction" permanent...

Tags: to 61.9 million

Six members of City Council have co-sponsored 2009-253. An ordinance amending section 880.32 of Chapter 880....IN ORDER TO CONTINUE THE CITY'S CURRENT 75% TAX CREDIT....AND ELIMINATING THE PRIOR TERMINATION PROVISION.

This ordinance will be discussed at a "Council of the Whole" meeting on Monday 12/14 at 6 p.m. I would urge anyone paying the tax to attend.  While you may not be able to speak on the issue your presence may have a limited infulence on the council members.

Immediately following the Finance Committee will have its first and probably only meeting to discuss the 2010 budget before it is voted on at the 12/27 council meeting.

Some have suggested that we should vote these fellows out of office. In the 2007 election no one that voted for the tax extension was voted out of office, In the just completed 2009 council at large election the two top vote getters voted in 2006 to extend the tax through 2011.

The Administration is smart in seeking to make this a permanent tax credit reduction now.  If passed in 2009 or 2010 it will assure that the present bond debt payments on 50 million in bond debt can be paid. The passage will...

To serve the general good of the community in which I live as a Public Servant.

My priority is (1) to serve the community (2) to represent the interests of the citizens (3) to maintain open discussion with the citizens, the Administration and the legislative process.