Loan for no-cost splash pad or firefighter overtime? Council committee debates spending

A member of Bucyrus City Council has questioned whether the city should be spending money on a new splash pad this year, even if a local civic group eventually will cover the cost.

During Thursday evening's regularly scheduled joint committee meetings, council's finance committee approved legislation that will allow the Bucyrus Kiwanis Club to borrow $90,000 for installation of a planned splash pad at Aumiller Park. The underground portion of work for the project was completed last year.

"When times are tough and we've got reduced staffing at the fire department, we're not a bank at this point," said finance committee member Kevin Myers, R-at large, the only committee member who voted against forwarding the emergency legislation to the full council for a vote. "This is money that I think we need to utilize for what we've got to do."

The money, from the city's American Rescue Plan Act funding, would be repaid by the club under the terms of a promissory note, said Brian Gernert, the city's interim law director.

"That money would have to be bonded, so the Kiwanis would have to purchase a performance bond," Gernert explained. The loan specifies the money can be used only for the construction of the splash pad. The group would repay the money in three annual $30,000 payments, starting Dec. 1, 2024. The group would have the option to repay it sooner. If the amount is not paid back in full by Dec. 1, 2026, 5% interest would begin to accrue, he said.

But Myers has repeatedly voiced concerns about recent changes at the Bucyrus Fire Department. Minimum staffing has been reduced from six firefighters a shift to four, effective Feb. 20. In announcing the directive, Mayor Jeff Reser cited a severe budget crunch, saying the city is "on a financial precipice." His figures showed overtime pay for the fire department was $400,000 in 2022 and, without the change, was projected to be $450,000 this year.

Myers: 'What am I supposed to say to them?'

Myers said residents have been asking him how the splash park loan could be justified at a time when the money would be better used to cover overtime costs at the Bucyrus Fire Department.

"How can we sit here and look at doing this right now and answer that to the citizens that have given an outcry of support for that? And that's a sincere question of ... what am I supposed to say to them?" Myers asked.

The money will be repaid, he acknowledged — but not this year. "We're in the middle of a financial crisis this year," Myers said.

So far, all expenditures from the city's $1.2 million ARPA allocation have gone toward safety forces — both equipment and salaries, Reser said.

"Nothing from that money has been invested at all in improvements in the community," he said. "That money should have been earmarked as much as possible for investments in the community. So at the end of the day, over 90% of that money is going to go to safety forces. We can afford to give 10% of it to investment for these kids."

Myers said he understood Reser's point, but wanted to share an argument he'd heard from a resident.

"If we don't support our public safety and we lose people and our insurance rating goes up and some businesses don't want to come here, people don't want to live here, I think that's a quality of life issue that's no better, no worse than what we're doing with the beautification projects and the legacy project," Myers said. "It all goes into the same basket, and I think we have to look at it as similar."

Reser: 'We have to have a balance'

"I think we invest well in safety; we spend $5 million a year on safety forces. We spend less than $100,000 a year on a pool. We have no money that we invest for any improvements to the park," Reser countered, adding the city relies on civic organizations for such things. "We underfund our parks. We have to have a balance. If you're going to have people living here, you have to give them a reason to live here."

"I don't disagree with that; we have the same argument, that funds are short right now," Myers said. He also asked if the ARPA money might not be better spent opening the city's pool this year.

Reser retorted that one reason the city is short of funds is because council members accepted a fact-finder's report on negotiations with the firefighters' union that cost the city more than $300,000 in back pay alone. Against the administration's recommendation, Myers voted in favor of accepting the report.

"We told you money was going to be short," Reser said. "Not even 10% of the ARPA money, that's going to come back in a couple years. We have an opportunity to do something really nice that's not going to cost the city a cent; we're just going to have to front a little money. I think it's a wise thing to do."

Allowing the club to handle the construction avoids the necessity of putting the project out to bid. Reser said the result will be "a lot nicer splash pad for the same amount of money." Annual maintenance is expected to cost $1,600.

If the emergency legislation is approved by the full council, the splash pad could be ready to open by the end of May, Reser said. "And every one of you can come out for a photo op," he added. "That will be huge for the city."

ggoble@gannett.com

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This article originally appeared on Bucyrus Telegraph-Forum: Council member questions timing of loan for new splash pad at Aumiller