The July 6, 2009 meeting of Lakewood City Council lasted about an hour and was attended by about 25 people, including several residents present to speak in favor of legalizing leashed dog walking in Lakewood’s parks. You can review a .PDF of the docket here.
City income tax amnesty program and delinquency sweep approved
Council suspended the rules and unanimously approved after only two readings (three readings are usually required) an ordinance authorizing Director of Finance Jennifer Pae to set-up a tax amnesty program.
Full details of the program were not available to the public for review or discussed at the council meeting, but the city has since issued a press release providing additional information.
Between July 21st and September 30th, the city will allow residents and businesses to file outstanding tax returns, pay overdue tax and interest in full without penalties and also pay overdue penalties at a reduced rate.
The city will then team-up with Cleveland in order to access information that will enable them to identify which Lakewood residents filed federal taxes, but not Lakewood city taxes. Lakewood has authorized Cleveland to collect the delinquent taxes on behalf of the city.
It seems like these phases will be independent of each other. The city will first conduct the amnesty period. It will then use the IRS information it gets from Cleveland to track down and bill deadbeats, who won’t have the benefit of making amends within the amnesty period.
Considering the lousy economy and the shock and fear some of the deadbeats will experience when they receive their delinquent tax bill in the mail, it would make more sense to throw them a bone and conduct the delinquency sweep within the amnesty period.
Finance Committee
Portions of the program were discussed at a finance committee meeting held just prior to the council meeting.
Present at the meeting were council members Michael Summers (Ward 3), Mary Louise Madigan (Ward 4), and Kevin Butler (Ward 1). Also present from the finance department were Pae, Assistant Finance Director Keith Schuster, Income Tax Supervisor Bridget Ebenger-Balla, and Municipal Income Tax Division Manager Patricia Chittock.
Chittock said the city hasn’t offered a tax amnesty program in at least 20 years. She noted that the city of Euclid recently brought in an estimated $150,000 during their amnesty period. “Every city that has tried it has had success with it,” she said.
Compared to Lakewood’s program, Euclid’s amnesty offering (.PDF) seems to feature better incentives.
In Euclid, for instance, a deadbeat who files delinquent taxes and makes full payment within 10 days would not have to pay penalty or interest. At the 30-day mark, they would pay only the overdue tax plus 50% of the interest and no penalty. At the 90-day mark, they would pay late taxes and full interest without penalty.
Chittock estimated the cost for the amnesty program to be around $10,000. 80% of the expenses are expected be postage-related. Overtime costs would consume the other 20%.
She said the city is only going back seven years, but has identified several thousands of people with an unknown tax status and thousands of people who definitely owe the city money. She didn’t provide any exact numbers, but when Councilperson Summers recapped the meeting to council, he said around 2,000 people had an unknown tax status and another 1,000 individuals were known to be delinquent.
The contract with Cleveland was vetted by the mayor and the law department and e-mailed to each city council member for review. The contract was not posted on the city’s Web site for public review.
Cleveland will get a small cut of the action for each Lakewood debt they collect ranging on average between 1.5% to 3%, with a maximum of 5%.
Status of Dick Jacobs’ estate tax situation unknown
Councilperson Summers noted during the committee meeting that council was about three months overdue in examining the status of several different city cost variables, including health care benefit costs.
Finance Director Pae said the city has seen fewer claims since going to the 90/10 healthcare insurance split and they are down about 5% from last year.
Pae indicated her second in command, Keith Schuster, was in the process of stringing together revenue projections. She said property taxes will be down, and state provided funding will likely decrease. Personal income tax revenue has been flat so far, Pae said, and considering the rising rate of unemployment numbers, close attention is being paid to the July 31st deadline when Lakewood residents must submit their next estimated quarterly income tax payment.
The city is not counting on receiving any extraordinary windfall from the recent death of former Cleveland Indians owner Richard Jacobs. His estate is still working its way through probate court. Pae said estate executors have as long as nine months before they need to file their tax liability information with the state. “An estate that large could go on for years,” she said.
Summers recalled that Shaker Heights received $10 million in estate taxes when the founder of Swagelok passed away. Someone else mentioned that Bay Village received a nice chuck of change when David Jacobs (Richard’s brother) died, but actually had to refund some of the loot after the tax assessment was challenged.
Shuster said Lakewood probably wouldn’t see anything until late next year at the earliest. Summers wondered if maybe it should be used to pay down city debts.
Council sharpening 2010 budget knife
Councilperson Madigan said council needs to bring city department heads in and ask them, “Where are your changes for 2010? What have you done to save money?” Three sections she wants to review for cost savings are human services, public works, and the fire department.
Summers said he was going to meet with the mayor and draw-up an early plan of attack. He seemed interested in trying to figure out how much money the city might save by renegotiating health care insurance benefits during the collective bargaining negotiations scheduled for the end of the year.
Pae said the city can’t even count on property taxes to increase as they had during previous property reappraisal cycles. “I mean, we’re going backwards,” she said.
Time to buy Councilperson Madigan a telescope?
Councilperson Antonio and Councilperson Madigan introduced the first reading of an anti-idling ordinance. The purpose of the proposed law is to prohibit most vehicles within the city from idling their engines for – depending on the situation – more than 5 to 10 minutes during any 60-minute time period. The intent of the law is to improve air quality and promote fuel conservation.
When a law this lame and unenforceable comes down the pike, one begins to wonder if certain council people are spending enough time walking through their respective wards.
Madigan should travel to the top of her Gold Coast tower and point a telescope towards the belly of the beloved Fighting Fourth Ward.
What’s the priority…

idling or tackling the out of control signage in the parking lot of Sam’s Beverage?
What’s the priority….

idling or getting a handle on the overgrown grass and bushes of this house located at 12109 Franklin?
As Shaker Heights Police Chief Scott Lee told the Sun Press regarding his city’s consideration of a similar anti-idling law: “In speaking with the police chief in South Euclid, I found out that they really couldn’t enforce any tangible time limit because they would have to have an officer standing there for 60 minutes.”
And that’s all anyone needs to know about Antonio, Madigan and this dopey ordinance, which will be debated further at the rules and ordinances committee.
Easter Seals to receive abandoned shopping carts
Council unanimously approved an ordinance that will allow the public works director to donate to Easter Seals approximately 60 unclaimed shopping carts the city currently has possession of.
Antonio still disagrees with leashed dog walking strategy
Council had the second reading of Thomas Bullock’s (Ward 2) proposal to allow leashed dog walking in Lakewood’s parks.
Five people spoke in favor of the ordinance, including Yvonne Rubin, resident of 14312 Detroit Ave.
She said people are very passionate about this issue. She felt the actions of a few irresponsible dog owners shouldn’t prevent everyone from being able to enjoy the parks. “We should just face the fact that shit happens,” she said.
Councilperson Madigan cautioned the audience against using coarse language.
Coletta Graham, resident of 1268 Chase Ave., opposed the ordinance and facetiously wondered if it was discriminatory in its exclusion of other animals. “Is this going to include cats, rabbits, and ferrets?” she asked.
Councilperson Antonio looked forward to debate on the matter, but still harbored reservations about the costs and responsibilities of enforcing the ordinance. “I continue to disagree with the strategy of leaving this up to the public works director,” she said.
The proposed ordinance was referred to the public safety committee for more discussion.
Due to the interest in the subject, Councilperson Madigan asked that the committee meeting be scheduled in the evening so that it would be more convenient for citizens to attend. Days later, the committee meeting was held at 8:00 a.m.
Deferred discussion on liquor permit application for El Tango Taqueria
Not all council members had a chance to read the police department’s liquor license report about El Tango Taqueria. Councilperson Summers (Ward 3) said he had “some concerns” about what he read in the report, and wanted to speak with the ward 3 police officer about the situation. Councilperson Bullock read the report and didn’t think it was big deal. Council voted to defer a vote on the matter until their next meeting.
2010 federal census outreach efforts
Lakewood’s population has been shrinking for the last several years and there is a very real concern it could drop below 50,000 and inhibit the city’s ability to access a sizeable pot of federal money.
Councilwoman Madigan said it is “critical to maintain federal funding” and wants to see the administration’s outreach plans to ensure the city doesn’t get the short shrift.
To her credit, Madigan said she hoped the pro-dog walking residents in the audience would be just as interested in census situation.
Miscellaneous
The police department is getting a $16,000 federal grant to be used to upgrade their 10-year-old computer server and CAD and records management system. They are also getting a $62,000 grant from the state to help pay the salaries of officers who are involved in the Drug Abuse Resistance Education (D.A.R.E) program.
Public Works Director Joseph Beno received authorization from council to get an extra $80,000 (from $120k to $200k) for concrete repair work at the city’s wastewater treatment plant.
Councilperson Bullock asked for more information and Beno said it had something to do with unexpected problems being discovered in underground tanks and tunnels.
Council also approved Beno’s request to fork over the city’s contribution of $120,110 to ODOT for the replacement of 13 traffic signals on Clifton Blvd. Construction will begin in the fall and will take about a year.
The United Stated EPA awarded the city $166,400 for diesel exhaust retrofit equipment.
The city wants to unload a vacant parcel of land located on Sloane Ave that it acquired from Bonnie Bell, Inc. in 1983. The parcel sits between two houses, not far from the new Blackbird Bakery, and isn’t suitable for building.
Mayor FitzGerald said the number of city households participating in the mandatory recycling program is “increasing dramatically” and will share the statistics with council soon.
Public comment
Clifton Apartment Dweller Edward McCartney mentioned Graber Dr. is missing a street sign. He also spoke about redressing grievances and referenced The Book of Luke. He wanted to include a reference to the Declaration of Independence, but ran out of time.
Coletta Graham, of 1268 Chase Ave., described herself as being “aghast” after reading a recent Plain Dealer article that outlined the area’s shrinking population. “Where did all these people go,” she wondered. Councilperson Butler said they are likely moving to faster growing suburbs in other areas. “It’s just really sad,” Graham said. She remembered when Lakewood’s population was 75,000.
Graham asked Pubic Works Director Beno how many workers in his department have been laid-off since the mayor appointed him. He said one person in engineering and 5 people in refuse.