ATHENS, Ohio – At its regular meeting June 3, Athens City Council passed an ordinance that will address a shortfall in its general fund balance, which has hampered the city’s ability to do business in recent weeks.
Ordinance 0-51-24 directs City Auditor Kathy Hecht, “to credit all monies earned in the city’s bank accounts and investments to the General Fund of the city.”
Athens City Treasurer Josh Thomas explained that this ordinance would primarily authorize the auditor to place interest that would typically be dispersed throughout all city bank accounts into the city’s general fund. He added that there are other funds that would get the interest they need, but that the majority of funds will be put into the general fund.
Thomas also added that the city recently received “a nice chunk of interest” from an investment that they redeemed “a couple of days ago”, which is why the city wants to get this ordinance approved quickly – so it can get this money into the general fund.
Council member Beth Clodfelter, At-Large, asked if the redeemed investment interest will help the city to reach its goal of a 9% general fund balance.
Clodfelter’s question referenced the city of Athens’s current financial struggle. The statutory minimum threshold for the city’s general budget is 7.5% of annual expenditures; it is currently at 6%.
Thomas said that the interest money will help the general fund, but that he does not know how close it will get it to the 9% goal.
The council also heard the second reading of Ordinance 0-54-24, which rezones several Elliot Street properties from residential multi-family zone to neighborhood business zone.
Council member Micheal Wood, 3rd Ward, said he will be voting no on the ordinance because it was sparked by local business owner Daniel DeLuca wanting to build or open something within the zone – without saying what it will be.
“I think to come and ask for all this without being transparent about what they’re actually intending to do, to me, insults the intelligence of council,” Wood said. “For me, I intend to vote no on it.”
The Independent was unable to reach DeLuca for comment by press time.
Council member Alan Swank, 4th Ward, suggested that Wood table the ordinance “with the implied request” that the applicant, DeLuca, can share with council what he intends to do. Wood motioned to table the ordinance, Swank seconded.
Before a vote on the motion, however, council member Micah McCarey, At-Large, confirmed with Assistant Law Director Jesse Branner Hittle that though the council may invite DeLuca to share his plans at the next meeting, he is under no legal obligation to tell them.
According to council member Jessica Thomas, At-Large, DeLuca mentioned at a Planning Commission Committee meeting that he plans on “possibly a warehouse, possibly a donut shop,” but nothing specific.
Wood called this a “non-answer.”
“I’ve started a couple of businesses and have never gone this far without having a clear plan,” Wood said. “Yes, he could come in and stonewall or, theoretically, lie to us … or refuse to come and speak. I could refuse to vote for it. That is my respectful point. I will not vote for something if you’re not going to give that common respect.”
Clodfelter suggested that the council not table the ordinance and wait to see if DeLuca volunteers more information at the next regular session. If he does not, the council could then table the motion. If he does, the process of the rezoning would not be slowed.
Wood said his only problem with that solution was that he would not be at the next regular session of city council.
After much back and forth regarding possible solutions, Swank attempted to withdraw his second for Wood’s motion. He could not, without Wood withdrawing his motion.
Ultimately, Wood withdrew his motion – saying, “sure” — because he did not think that enough council members would vote to table.
Athens City Council’s next regular meeting will be at 7 p.m. Monday, June 17, in Athens City Hall, Council Chambers, third floor, 8 E. Washington St. Meetings are also available online. Regular sessions are on the first and third Mondays of the month; committee meetings are on the second and fourth Mondays
