MAYOR'S MESSAGE

Craig A. Stough 5/10/2007

"2007 Capital Expenditures Budget"

During their regularly scheduled meeting on Monday, May 7, 2007, Sylvania City Council voted approval of a $2,603,000 Capital Expenditures Budget for 2007. The capital improvement projects funded include roadway, sewer, water distribution, bridge/culvert, public facilities, information technology and a grant for the improvement of Fossil Park.

The improvements approved include the annual residential street improvement program, Franciscan/Clair/Kinsman street replacements, the Main Street bridge replacement, improvements to the City's telephone and computer network systems, City maintenance building improvements, leaf dump site improvements, and waterline/sewer improvements. Another $1,660,000 of proposed capital improvements remain under consideration, including $600,000 for Sylvania's portion of the ODOT repaving of Monroe Street, a project now delayed by State bids received over budget.

The approval of an annual Capital Expenditures Budget is new for Sylvania City Council. During former Mayor James Seney's tenure and mine, the accepted procedure was for the City's administration to bring appropriate capital projects to City Council on a timely basis for Council consideration and approval. Late last year, at the request of City Council, the administration brought Council potential capital projects for the next five years for their earlier consideration.

A Capital Expenditures Budget is different from an Operating Budget. Ohio state law requires adoption of a balanced Operating Budget by each municipality no later than March 31^st of each year. The approval of the Operating Budget authorizes the expenditure of operating funds for the entire year without further City Council action, allowing City government to operate and pay its bills. New programs and expenditures can be approved during the year, and a year end ordinance balances actual versus budgeted revenues and expenditures.

The approval of a Capital Expenditures Budget is not required by State law and does not authorize the expenditure of public funds. Rather, the Capital Budget serves as a roadmap of needed improvements. The actual expenditures are authorized with individual ordinances throughout the year to approve projects as they are bid and contracts are awarded. Changing circumstances, needs and opportunities, such as available grants, through the course of the year will lead to revisions of the plan as the year unfolds.

In my tenure as Mayor of Sylvania, I have requested approval from City Council of capital improvement projects that maintain or improve our infrastructure, improve our overall quality of life and increase the efficiency of the delivery of City services to our residents. The projects included in the approved 2007 Capital Expenditures Budget meet those criteria. Improvements to roadways, sewers, water distribution, bridges/culverts, public facilities and information technology will keep the City of Sylvania attractive and promote increased efficiency in the delivery of City services, keeping Sylvania a desirable place to live and our property values high.