LEGISLATIVE, FINANCE AND ADMINISTRATION COMMITTEE

The Legislative, Finance, and Administration Committee Meeting was held on May 23, 2006, at 6:00 p.m. with Chairman Salters presiding. Members present were Mr. Hogan, Mr. Slavin, and Mr. Shevock. Mr. Shelton was absent. Members of Council present were Mr. Carey and Mr. Ruane. Mayor Speed was also present.

AGENDA ADDITIONS/DELETIONS

Mr. Hogan moved for approval of the agenda, seconded by Mr. Shevock and unanimously carried.

Request to General Assembly - Increase Bond Limit (Recommendation of the 2005 Charter Review Committee)

During their Regular Meeting of March 27, 2006, Council referred Discussion - Increase of Bond Limit to the 2005 Charter Review Committee for their review and recommendation, as recommended by the Legislative, Finance, and Administration Committee. During the 2005 Charter Review Committee meeting of April 13, 2006, Mrs. Mitchell, Finance Director provided a presentation on Debt Limit and Debt Management Policy.

Mr. Thomas Leary, Chairman of the 2005 Charter Review Committee, advised members that, after review and discussion, the committee recommended amending Section 50 of the City Charter by amending Subsection (b), second paragraph by decreasing the aggregate of the amounts so borrowed together with all other bonded indebtedness from 25 percent to 5 percent, and Subsection (c)(i) by changing $1,000,000.00 aggregate principal amount to 1/4 of one percent (.25%) of total assessed value of real property of aggregate principal amount, as recommended by staff. Mr. Leary noted that members also recommended retaining the requirement of a referendum vote of the qualified voters and establishing a Debt Management Policy, with a policy review every three (3) years.

Mrs. Greenwood, a member of the Charter Review Committee, advised members that she was opposed to the proposed Charter amendments, feeling that the language was confusing and that it should be made simple for the public to understand.

Mr. Hogan moved to recommend approval of the 2005 Charter Review Committee’s recommendation to retain the requirement of a referendum vote of the qualified voters and to establish a Debt Management Policy, with a policy review every three (3) years. The motion was seconded by Mr. Shevock and unanimously carried.

Mr. Hogan moved to recommend approval of the 2005 Charter Review Committee’s recommendation to adopt the Resolution requesting the General Assembly to amend Section 50 of the City Charter by amending Subsection (b), second paragraph by decreasing the aggregate of the amounts so borrowed together with all other bonded indebtedness from 25 percent to 5 percent and to amend Subsection (c)(i) by changing $1,000,000.00 aggregate principal amount to 1/4 of one percent (.25%) of total assessed value of real property of aggregate principal amount (Attachment #1). The motion was seconded by Mr. Shevock and unanimously carried.

Upon Council approval, this request will be forwarded to our local legislators to be submitted to the General Assembly for approval.

Mr. Hogan moved for adjournment, seconded by Mr. Shevock and unanimously carried.

Meeting Adjourned at 6:09 P.M.

                                                                                           Respectfully submitted,

                                                                                           Reuben Salters

                                                                                           Chairman

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S:ClerksOfficeAgendas&MinutesCommittee-Minutes20065-23-2006 LF&A.wpd

Attachments

Attachment #1 - Proposed Resolution-Request to General Assembly