City wary of ballpark bailout
City officials are hesitant about stepping in financially to help the city Parks, Recreation Grounds and Facilities board pay for Kelly Automotive Park.
The facilities authority, which manages the park for the city Redevelopment Authority, was $243,000 in debt and three months behind on its mortgage payment to Dollar Bank as of June 13.
The redevelopment authority is ultimately responsible for the mortgage on the park.
City treasurer Jeff Smith, who was selected to the facilities authority board by city council in April, said last week that the city may have to explore raising its recreational tax to help support the field.
He said at the time the city, which is not financially liable for the park, may feel it has a moral obligation to assist the park since it created the redevelopment and facilities authorities.
But city council is hesitant to increase taxes, even if it means losing the field.
“I’m not in favor of a tax raise,” Mayor Tom Donaldson said after Thursday’s council meeting. “But we may have to sit down and explore our different options.”
The city’s recreation tax is at 2 mills. It brings in about $131,000 in revenue each year for the city’s parks.
While the city’s real estate taxes cannot be raised any higher under state law, the separate recreation tax can, said Councilwoman Kathy Kline. The tax falls under a special levies section in the city budget, along with the city’s debt service and library taxes.
Councilman Richard Schontz Jr. said he doesn’t think a tax raise is something the city should consider.
“Not at this time,” Schontz said. “But I’m willing to do just about anything up to that point.”
Schontz said the park is an asset to the city and needs to stay viable.
“It’s a historic monument,” Schontz said. “We need to step up and help to a point.”
Schontz said council plans to set up semiannual meetings with each of its authorities to maintain better relations with them. The chairman of each authority would be requested to attend a council meeting and provide an update on the board.
“We can communicate with all authorities better,” Schontz said.
The city has liaisons with each authority who are responsible for keeping up to date on the issues.
Councilman Bill May is the liaison for the facilities board, while Donaldson is for the redevelopment authority. Both men took office this year.
May was not at the council meeting due to a wedding.
Councilwoman Cheri Readie, who changed her last name from Scott following her marriage last month, said she is strongly against raising the recreation tax.
“It’s not the taxpayers’ responsibility,” she said. “It’s their project that they need to figure out.”
Readie, who is the financial director for the city, said she would be willing to sit down with the authority herself to look over its finances, if it asked.
Kline said she isn’t certain what she would do if the bank was about to take over ownership of the field.
“It’s a really hard call for me,” Kline said. “I love the ballpark, but I don’t know if raising taxes is the solution. If we had an excess, I wouldn’t hesitate.”
Kline suggested that Butler County and the Butler County Tourism and Convention Bureau may want to get involved if they are capable.
“They’re doing a little better than the city,” Kline said. “It’s not something just city residents use. It’s just a thought.”
Council agreed the city just isn’t financially able to support the park.
“We just don’t have the money,” Readie said.
Council expressed some confidence in the authority to recover financially before the city would need to step in.
Kline and Readie said the board needs to be creative with its events.
Donaldson acknowledge that task is easier said than done at the open air baseball stadium.
“It’s hard to market,” Donaldson said. “But there’s potential there.”
