Will the City of Sandusky receive a bailout?

Register
Aug 5, 2014

 

The City has gotten itself into a financial situation and it is depending on a bailout from a large corporation to fix it. Is Sandusky too dependent on one corporation? How much involvement will the corporation have when it comes to spending the additional revenue? 
 
If passed, the new revenue will be designated to different funds. The distribution of funds is very basic. It is not enough for the city to assure the residents that the money will be spent correctly according to 
what was agreed upon, but to offer up a yearly report of the expenditure breakdown in detail for each category. The city should be able to produce such a report, if the city is actually doing what it said it 
would do for the additional tax revenue.
 
The whole tax deal is odd especially the perpetual $500,000 payment being made to the city by the corporation. I think the $500,000 should have had an expiration date on it, or at least reviewed yearly 
to see if the city actually needs the additional money. The $500,000 was not designated, so it will probably be going into the General Fund. I wonder if some of the money could make its way into the City Hall Building Fund under the development category. 
 
The legislation mentioned that each year 6.25 percent of the income tax money will go to pay down debt, but I think it should be more than 6.25 percent. Part of the city’s problem is that there is way too much debt. The city just keeps rolling over the debt and not making any real progress at getting the debt off and keeping it off. The city is paying $2,985,626 just in interest towards its total debt, plus, the city must carry $3 million in savings to cover the debt obligation. The principal on the overall debt is about $4.3 million, so you can see how much money is being tied up with debt obligation. 
 
Further, the legislation states that 88.75 percent of income tax funding will go into the General Fund and 5 percent will go towards the Capital Improvement Fund. The wording on the legislation before each funding allocation states that the allocation of funding can be “modified by ordinance." What the wording doesn’t say is modified by ordinance and approved by the voters. Maybe, I am not reading it 
correctly, but shouldn’t any modifications go on to be approved by the voters since they approved of the original allocations?
 
Sandusky needs to concentrate on jobs to build up the income tax base so it can become self-sustainable. To go on like the city has been going on, will surely result in filing for bankruptcy. Maybe, bankruptcy is not a bad idea, because someone else would come in and order the city to do what needs to be done to become solvent. 
 
I hope that if the residents approve of the additional revenue, that the city will spend the money wisely and not place special interest ahead of the prioritized needs of the community.

Comments

ComonsenseNow's picture
ComonsenseNow

Maybe, just maybe if you would let the city manager do what he was hired to do you will see the city come back. Every Monday you have to stand up and talk just to hear yourself talk. If you would pick your battles maybe you wouldn't sound like a nut case and people would actually listen to you.

sugar

Quit stealing others names you phony freak. Sharon is right this city is mismanaged and Wibser is at the mercy of the dorks that have mismanaged the city. Most of th are big spend and tax Democrats
VOTE NO!!! Wobser gets no special timeline to prove himself.

knowitall

Vote Yes!

Sugarr

Well aren't we the pot calling the kettle black stealing my name. Nice move A$$ Clown aligning yourself with Sharon "conspiracy theory" Johnson.

gene44870

I have to agree that the only way to save the city from falling into the hands of a federal judge and federl court is to stop being so dependant on Cedar Point and get a lot better higher paying jobs that last all year .Raising the income tax is only going to be temp fix and short term fix .
I blame the city for not working harder in the past to either retain or replace factories over the years that has led us to this mess we are in today .
Its time for the resdents and tax payets to take a good hard lookat the people that are intrusted to run this city as well as have the guts to make changes to make this city more independant .
Just remember residents . The reps of the city are working for you . And as such should be held to a standerd needed to keep our city safe and independent not to mention in yhe black rather then the red due to a bad idea of makiing this city a Vacationland. Dont get me wrong . Its nice to have the funds that is generated . But truth be told its not enough by a long shot .

WhatTheHeck

It will be if invested right! Vote Yes

SanduskyNow

F'K Sandusky.. They put themselves in the situation that they're in today, if they want to fix it, then fix it.. If not, then F'k em!.. Sad-dusky, i'm DONE with ya!

WhatTheHeck

Sad person! Boo Hoo! You gonna start crying baby?

ski

To quote from the article above: "The city is paying $2,985,626 just in interest towards its total debt" and "The principal on overall debt is about $4.3 million" So Sandusky is paying 70% in annual interest charges? I don't think so, Based on the latest published annual financials total debt is over $70 million. Can the Register fact check their articles to ensure that numbers are at least within a magnitude of being correct? Gene's comments above are much more succinct and to the point, perhaps you should hire him as a writer so that these stream of consciousness rants posing as opinion can go away,

Larry

Maybe if Sharon had a real job, she would have less time to dream up these ridiculous conspiracy theories. How about we just set back and give our new city manager the benefit of the doubt and allow him to develop a comprehensive plan.

Julie R.

"How about we just set back and give our new city manager the benefit of the doubt and allow him to develop a comprehensive plan."

Don't you really mean how about we just set back and give the Murrays, the county clowns and Cedar Fair the benefit of the doubt?

yea right

Yea right. Just like how the city has always shot down every other money maker. Look into it Julie. I realize your a kid but look in the archives you will see.. One I remember is Hearst corp. Tech center. Make sure you go beyond and see where these money makers are and how they are benefiting their communities

sugar

VOTE NO, no more of my money to squander!

WhatTheHeck

Wobser is good for Sandusky!

The Answer Person

Why don't you and your friends the Watchdogs do something to HELP? Oh I know, it's not free.

The Hero Zone's picture
The Hero Zone

Tourism and hospitality is the mainstay of Sandusky whether we like it or not. Much of the infrastructure is literally built upon that. While diversity is certainly important, the mousetrap can only be modified so much away from its form and function. That isn't said in despair. For example, our area is RIPE to be a national gathering place for conferences and meetings due to the hotel space and recreational facilities. I have thrown my hat in with other game stores in the area to participate in a regional card championship series that will help draw people to our area to stay in hotels, eat at restaurants, and spend money in the area towns. This wouldn't be as possible if it weren't for what was already in place due to Cedar Point, Kalahari, and others.

Even if it is just out-loud dreaming, I'd love to have a facility like this on Sandusky Bay: http://www.mononaterrace.com/

Beyond that we can look at projects like what Erie Blacktop wants to do with their pier plan. I'm not sure where that stands, but that would bring non-entertainment diversity. There may be other options, too, but I'm not an expert in heavy industry to know why factories aren't being built. I can only speculate, but that's a conversation for another story.

Whatever is built here should take advantage of our copious transportation options, the full line of entertainment/hospitality facilities and culture, as well as the historic and natural resources we are fortunate to have.

The Bizness

Awesome venue! Let's do it.

SamAdams

It'll never happen. Sharon and Schwanger will jump up and down and scream until it doesn't.

Would it be good for Sandusky? Yes. Do I like it too? Yes. Does that matter to Sharon and Schwanger? Sadly, no, not so much.

The Hero Zone's picture
The Hero Zone

Mr. Schwanger has left comments about that before as this isn't the first time I've invoked the thought or used Monona Terrace as an example. Of course whatever would be built in Sandusky would be appropriate for the area as Madison, WI is not only a state capital but also has a university in the city. Even a scaled-down version of the building would be nice, but the concept of the terrace goes beyond the building to the synergy it has with the city in terms of architecture, public accessibility (many people fish off the front and/or use the paths to walk/jog along the lake), and environmental concerns. Their catering uses biodegradable, corn-derived plastic cups as an example.

If not the physical structure, I really want to invoke the spirit of the place as a professional, beautiful center of commerce, education, conferences, and a jewel along the lake's shore.

LivinOnTheLake

@HeroZone - sorry, this area is never going to be a major player in conferences and conventions due to the fact people have to fly into Cleveland Hopkins and then drive 45-60 minutes to get to our conference centers. Unless of course, the county and NASA-Plum Brook get off their arses and finally do something about building an airport and stop talking about it every election cycle to make it seem like they have something big going on.

sandtown born a...

Cut all welfare benefits to a 4 year limit one time helping rather than a way of life and the state would save billions, maybe that could trickle down to the local cities

WhatTheHeck

People on welfare should take drug test, especially the food card people out there selling their food card for drugs!

SanduskyNow

.

sugar

No raises for the unions, no new taxes for the working class, learn to manage your money commissioners.

LivinOnTheLake

For those of you advocating that the City of Sandusky "create more high paying jobs", here is a realistic question...Where and how is Sandusky going to do that. Sandusky is a "land-locked" town with Lake Erie on the north and Perkins Avenue on the south end. The city cannot annex its way to prosperity. The City has NO industrial park land available to bring in new industry. The city only has very old industrial buildings that need to torn down. So, exactly where would Sandusky put potential new employers in the City? These questions, which have not been addressed by the City are the reasons that Sandusky has been in decline, while other areas like Perkins Twp., Huron, Margaretta Twp., and Huron Twp have seen growth in the past 10=15 years. That is why the county is in a much better place financially than the city of Sandusky.

Until City leadership is willing to address these challenges, they will continue to decline and all they will have left is Cedar Point. You have to wonder why the population has sharply declined and this is why the City is hoping that Cedar Point will bail them out.

Train

I'll be voting yes; primarily to cancel out sugar's vote.

sugar

Love the big boys attacks on women who call them out. You had time this evening ?
I'm surprised you weren't all hanging out downtown playing with the FD and city trucks. Lol

Erie County Resident

The city dug the hole. Dig yourselves out on your own dime.

T. A. Schwanger

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I prefer using Windsor Ontario's and Cincinnati's' waterfront as examples of waterfront development done property. Public access areas and private development are separated by main transportation routes with the public access amenities on the water side of transportation.

http://blogs.windsorstar.com/opi...

http://www.urbancincy.com/2011/0...