Moody's re-assigns desirable Aa3 bond rating to Lakewood

[Rick Uldricks]

How will this help security and cleanliness of our city?

Just curious.

I thought that neighborhood block watches and picking up litter and cleaning up graffiti ourselves were the answers to security and cleanliness.

[Suzanne Metelko]

Does this mean you are taking the pledge not to raise taxes?

For how long? 1 year? 2 years? 3 years? 4 years? more?

Can you actually lower our taxes?

Where will the cuts be made?

How much will be saved?

What programs will we loose?

How will this help security and cleanliness of our city?

Just curious.


.

Those questions can't be answered without assessment. You know - part of that pesky "plan thing" that is my "mantra".

As for Ryan - yes, I am working on that campaign.

[Lynn Farris]

Isn't that how we got the improved bond rating before by lying to Moody's about an income tax increase? Without it ever even being presented in any real form to Council? If I get the time, I will go back and dig up the notes from that council meeting 1-2 years ago.

I clearly remember a discussion where council was being forced to put the income tax increase on the ballot because Moody's was already told that there would be one and council was rather upset about it.

I thought that ended this concept. I guess I was wrong.

BTW, I completely agree with Susan that we should have a clear plan before we ask for more taxes. I believe that is why it was defeated by council before - and it wasn't just Ryan - he is the only Republican on council. Democrats believe that you should have a plan as well. This is a bipartisan concept.

[Lynn Farris]

Found the information from the Council Meeting in question. FEBRUARY, 2005

MINUTES
OF THE
REGULAR MEETING OF
LAKEWOOD CITY COUNCIL
HELD IN COUNCIL CHAMBERS
12650 DETROIT AVENUE
February 7, 2005
7:30 P.M.

Go to Item 15 and read the discussion for yourself.

http://ci.lakewood.oh.us/citygovern_council_minutes_2005a.html

The speaker here is Councilman Fitzgerald, the President of the Democratic Club (clearly this is not a Republican only issue.)

He referenced a July 23, 2004 correspondence that was included in the packet stating it was a letter from Moody's Investor Service. He said it was an analysis of Lakewood's bond rating, maintaining Lakewood's bond rating with a negative outlook. He read; "…city officials report the intention of seeking an increase in municipal income tax rate from 1.5% to 2.% in 2004. He said that was apparently the information given to Moody's. He said that the first time he heard of this would have been in January of 2004 during the Budget Hearings. He said that at that time City Council was told that probably an income tax would be proposed because the city's expenditures and revenues were not matching up. He said all of 2004 went by without any proposal. He said that Moody's gave a negative outlook even when it indicated a proposal was to go to the voters in 2004.

BTW, this is a 33% increase in income taxes. That is huge, with a tax that increases automatically everytime a citizens income increases. I applaud both Concilman Fitzgerald and Councilman Demro for wanting to look at all options and having a plan beofre they would vote to increase our taxes by 33%.