Geauga County and Chester Township Budgets Not Approved
by Budget Commission During August 19-20 Hearings
Budget Commission Hearings – August 19-20, 2024
Meeting Details: The Geauga County Budget Commission met in Special Sessions on Monday, August 19 and Tuesday, August 20, 2024 starting at 9:00 am in the Auditor's Conference Room, 215 Main Street, Chardon, Ohio. These meetings were in person with a virtual option via MS Teams.
Meeting Attendance: Treasurer Chris Hitchcock, Auditor Chuck Walder, and Prosecutor Jim Flaiz. Observer Note: Occasionally one or more members left the meeting and this will be noted. In particular, Mr. Walder recused himself from the Russell Township hearing.
Staff Attendance: Chief Deputy Treasurer Caroline Mansfield, Chief Deputy Auditor Ron Leyde, Deputy Auditors Tammy Most and Kristen Sinatra, and Fiscal Office Manager Pam McMahan.
County Staff: County Budget and Finance Manager Adrian Gorton (virtual) for afternoon session of 8/19. Also on 8/19, Frank Antenucci - Chief Deputy Administrator, ADP.
Members of the Public: This LWV Geauga Observer (virtual) in the morning and a Geauga Maple Leaf reporter, in the afternoon Diane Jones (virtually).
The meeting was called to order at 9:01 am.
Observer Note: After each township hearing, Mr. Walder passed out information regarding the process for homeowners to file for a one year reduction of up to 50% for property damage they suffered during the recent extreme weather event. He said that the damage must be to structures, not just trees falling, and that it was important to list the date of the storm. Further, he said that if property damage was going to be claimed for another year, that a different form would need to be filed. See more information on the Auditor’s website.
Minutes: Information and minutes from these public hearings will be posted on the Budget Commission website after approval.
Public Hearing: There was a brief public hearing regarding the allocation of the undivided local formula as required by ORC 5747.53. It was stated that, as in the past, there would be no allocation for any park or for Hunting Valley. Mr. Flaiz said that under law the county and the largest municipalities can comment. There were no comments and the public hearing was closed.
Summary for August 19, 2024:
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Auburn Township tabled.
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Chester Township and Geauga County budgets not approved.
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All other budget submissions approved either unanimously or by two out of three Budget Commissioners voting yes, as noted.
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Many Townships were encouraged to set up reserve funds to adequately plan for future expenses.
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Concerns were raised about large variances between estimated and actual ending balances, and whether there was too much cash or too little cash estimated for the end of the year.
Observer Note: Those who attended the individual hearings were not identified on the record. If those who attended were known to this observer, their names are included. If not, any information that was made available is listed.
At the beginning of each hearing, figures were given by Deputy Auditor Kristen Sinatra. These figures are from the Hearing Worksheet form GCA-002 and will be available in the minutes for each hearing once the minutes are approved and posted. Only information from funds receiving taxpayer generated revenue such as the General Fund, Road & Bridge, Fire, Police, Park, Permanent Improvement or Bond are included. The numbers listed in this report are the Certificate totals that were approved except as noted otherwise.
Thompson Township - Two individuals attended
Thompson Township estimated beginning balance in the General Fund for January 1, 2025 of $238,284.96; revenue of $169,934 for a total of $408,218.96
Thompson Township has a total of 15 mills with a levy on the ballot of 1.75 Mills Fire renewal.
Mr. Hitchcock said that the total in the General Fund was too high. He felt that unless there was a plan for the money that some of the money should be returned to the taxpayers.
Mr. Flaiz asked if there was money remaining after the purchase in the Police Fund. He felt that there were many needs for capital investment in the Township, and he advised putting a plan into action to utilize the excess funds.
Mr. Walder’s notes and comments reflected his concern that the General Fund was too high at 170%. He said the balance in the Fire Fund would be 125%. Mr. Walder asked about the Police Capital Reserve fund, and he stated the need to establish reserve funds.
Budget Approved, with Mr. Hitchcock voting no
Thompson Park - Two individuals attended
General Fund estimated ending balance as of January 1, 2025 $63,525.25, revenue of $22,482.28 for a total of $86,007.53. Estimated expenses were $30,000.
All agreed this was deemed a good submission. Mr. Flaiz said they do a lot with a little money.
Budget Approved Unanimously
Bainbridge - Three individuals attended, including the Fiscal Officer, Janice Sugarman.
Estimated beginning balance in the General Fund as of 1/1/2025 is $1,433,104; estimated revenue $1,829,134 for a total of $3,262,238.
Mr. Flaiz said, “This is not directed at fiscal staff. As people know, one of my big issues, estimated ending balance and actual ending balance. When I see those big variants with the end of this year ending balance $667,000. I wager it will be north of $2M.”
Mr. Walder said that they should continue to work on their Reserve Funds. He said that their 5 Year Plan was excellent. “Kudos for your work – Thank You!”
Mr. Flaiz - said they should look at the Fire fund. He said, “It’s a bit of a cumulative error” He said that the estimated ending balance for 2023 was $67,000, but it ended up at $1.3M.
A Bainbridge representative said, “What we did tell our chief is to stop doing things because if the levy doesn’t pass, we need the money.”
Mr. Walder: If you begin with a big balance, you’re going to end up with a big balance. “You are optimal with use of reserve funds.” He also concluded: “I am comfortable with your ending balance. You are doing the right things with reserves, encourage you to do more with reserve funds.”
Mr. Hitchcock said that the General fund ending amount is trending up. He said that they could fund everything needed for 1-½ years without tax money. “Amount of cash that you have on hand is not necessary.” He further said that he encouraged them to give back $1 million to the taxpayers.
There was then a long discussion about the planned new town hall. Bainbridge representatives said they have received estimates from $750,000 - 3.3 Million. Trustees have had architects attend meetings. They concluded that it should be less than a million, but that they are still not sure. They said it has been a long process.
Mr. Walder suggested that they could solve the problem raised by Mr. Hitchcock by putting in a reserve fund. He said, “If you need it, you spend it, or if you don’t need it, it goes back into the General Fund. “ He continued, “ I’m more aware of the process of creating a reserve. Chris’ (Mr. Hitchcock) points are valid, but you are ‘in the process.’ I wouldn’t do any drastic action.”
Mr. Flaiz said that the building is a legitimate issue.
Bainbridge agreed that they could do a capital reserve fund for this building.
Mr. Hitchcock said - “I don’t hear a promise to set up a reserve fund.”
Bainbridge responded that it would be on their Agenda for a meeting the next day.
Budget Approved, with Mr. Hitchcock voting no
Troy Township - Two trustees and Fiscal Officer Laura Abke.
Mr. Walder said that only one of the Trustees could participate unless they were going to open a public meeting. Observer Note: If a quorum of trustees is present, they would need to have advertised this a public meeting and then open a formal public meeting. This was done in a few of the hearings during these sessions.
Estimated General Fund balance as of 1/1/2025 is $106,714; estimated revenue $265 778 for a total of $372,492. There is also a Special Revenue Fund with a total balance after revenue of $1,997,687.85 and Road and Bridge Fund.
There is a 4.5 mills fire levy on the ballot in November.
Mr. Hitchcock said that the General Fund balance was good but that the Road and Bridge Fund was a problem. He said the ending balance would be $395,000 and that they could operate for a year and ⅔’s without additional tax money. He said this was unacceptable. He noted that there was no mention of a reason to have so much cash. He stated that “unless they indicated that you have several hundred thousands, I’m out.” Taxpayers have no understanding, but you do. He also said he was slightly concerned about the Fire Fund with cash for ½ year.
Mr. Walder said they were looking at ending balance with 46% carryover and that was okay. He went on to say that if they combine all road-related funds, they would be 124%. He told them that they need to create a reserve fund. He said this could be used for a new plow truck. He also thought they should set up a Fire reserve Fund.
A Troy Trustee said that they would be purchasing an ambulance.
Mr. Walder said they should start putting away a little now for when it is needed. He said their office could help with the mechanics of setting up a reserve but that Trustees initiate this.
A Troy Trustee said that they have $400,000 that they need to write checks for out of their Road fund. He said that they don’t own any equipment, but they have three roads to resurface next year.
Mr. Walder said that they can reserve for road projects, and they would have up to 10 years to use that money.
Mr. Hitchcock asked, “Do you think their trustees would approve setting up a reserve fund?”
Flaiz - You can right that ship (Road and Bridge). He generally said they are going in the right direction.
The Troy Trustee said that they are ready to buy the ambulance which is a two year process.
Budget Approved Unanimously
Chardon Township - Two trustees and Fiscal Officer Edward Slusarski
Mr. Walder confirmed that only one trustee would be speaking.
Estimated ending balance in General Fund 1/1/2025 - $193,493.99; revenue $511,118; ending balance of $704,611.99. There is also a Road and Bridge Fund and a Fire Fund.
Total millage is 10.2 mills. There is a levy on the ballot - a Fire renewal. A 3 Mill levy passed in March for Road and Bridge.
Mr. Hitchcock expressed concern that the Road and Bridge ending cash balance was much higher than the amounts that were budgeted in 2024. He noted that the year before it was the same thing. He concluded that they had the opportunity to do much better budgeting.
Chardon responded that this was the advice given to them last year, and so they sat down with Mr. Walder and Mr. Leyde (Chief Deputy Auditor). They took all the previous advice to heart, and this year estimated 20% carryover. They also have had a reserve fund expert coming in to start the process of setting up reserves.
The Chardon Trustee also said that they went back and forth about the levy on the ballot. They have decided that they won’t collect for the first year if it passes.
Mr. Flaiz asked why the estimated Road and Bridge was double what was needed. He wanted to know if there were any plans.
Chardon Trustee said they have done a study of road needs which will be presented at the next meeting or the one after that. He said that Chardon is about 8-10 years behind schedule of what should be done.
Mr. Flaiz said he would normally vote no, but he appreciated that they have been meeting with the Auditor’s staff to try to come up with balances that make sense. He said they were still off, but are a lot better.
The Chardon Trustee said he thought it would be 2-4 years to make all the changes.
Mr. Walder noted that they are moving from a zero-based budget to UAN (Unified Accounting Network), and said they are on the right path. He said he would Just take time to get there. He also recommended setting up some reserve funds.
Budget Approved (Mr. Hitchcock was not present for this vote)
Burton Township - Trustee Dan Whiting and Katie O’Neill, Fiscal Officer
Estimated beginning balance General Fund 1/1/25 - $232,982.14; revenue $360,481; total $593,462.14
There is also a Road and Bridge Fund and a Fire and EMS Fund.
Total of 10.35 Mills, with a Fire and EMS levy renewal on the ballot.
Mr. Flaiz said that what jumped out to him was that it looked like they were a little overfunded in General and Road and Bridge. He said he knew they have had some serious challenges with the building project. He asked for information about that.
The Burton Trustee said that portions of the cost for the building are coming out of different funds. They have an estimate of what they have to spend of around $800,000.
Mr. Flaiz said if you plug that in, and you also need a new road garage, that changes that dynamic. He said he would approve.
Mr. Hitchcock asked how much ARPA (American Rescue Plan Act) money they had remaining, and Mr. Whiting said they had $312,000 left from ARPA.
Mr. Hitchcock said that if they use a portion of the general fund for this project, he would be okay with their budget but if not, he cautioned that the following year he would not approve.
Mr. Flaiz said that they have to use their ARPA money or lose it. He said, “Anybody who has to give the ARPA money back, well, should get voted out of office.” He further said he thought they have spent too much time getting this done.
Mr. Walder also noted the high General Fund and Fire and Ambulance Fund. He recommended Reserve Funds.
Budget Approved Unanimously
Montville Township - Three representatives, including Karen Hawkins, Fiscal Officer and Ron Jonovich, Fire Chief
Estimated General fund balance as of 1/1/25: $154,671.25; Revenue $192,941; Total $347,612.25
There is also a Road and Bridge Fund and a Fire Fund.
Total Millage is 11.4 with a 2.4 mill Fire on the ballot in November.
Mr. Walder said the General Fund balance was 27% carryover and Fire/Ambulance was 24% carryover. He recommended looking into Reserves. He said it was a “pretty clean budget” - a good submission, good job.
Montville said they will open a reserve fund for Fire. They need $600,000 - 1 million.
Mr. Hitchcock said, “Karen, you indicated you were saving $500,000; cash balances were high in 2023 for the Fire and General Fund. You may have a project but no notes say there is any project.”
Montville responded that there is a Road project this year and one next year. This is a split road project, and it could be as high as $200,000. They will bid out in 2025. It was going to be two roads combined, but now 50/50 on one road alone.
Mr. Hitchcock asked if this would be about $200,000 out of your money?
Montville said it will come out in 2026; the other road project is $100,000 in 2025.
Mr. Hitchcock cautioned that they should make sure they spend it.
Budget Approved Unanimously
Claridon Township - Two representatives
Estimated General fund balance 1/1/25 is $422,140.59; revenue $371,342; total of $793,483.59
There is a Road and Bridge Fund and a Fire Fund.
Total Millage 11.5; no levies on the ballot.
Mr. Walder appreciated that they voluntarily reduced collection on their Fire levy for 2024.
Mr. Hitchcock: “I am extremely concerned about the difference between the ending fund actual and estimated…. There’s enough to operate 2-⅔ years without any additional tax revenue.”
The Claridon Representative responded that it was a low estimate of costs, but that they will be transferring more from the General Fund to the Road Fund.
Mr.Hitchcock said, “If you don’t make that transfer, it’s going back to the taxpayers.”
Claridon assured him that they would.
Mr. Walder said that the General Fund will have 88% carryover and that’s high. He also said there were solutions, such as reserve funds. He continued that the Road Fund would have a 124% carryover, also high. The Fire and ambulance are fine. Mr. Walder continued that they need reserve funds and that would drop the cash balances. Mr. Walder said it keeps the cash balances more even instead of up and down. He offered to help them set up reserves. He said that Mr. Flaiz’s office set up a template that they could use.
The Claridon Representative said they need to pay for a roof, and that the Township is potentially taking on Aquilla Village.
Mr. Flaiz discussed the transition with Aquilla Village. He said, “You had Aquilla, then you didn’t; now you take that over, their taxes will go down.” He said that after the election, if residents decide to dissolve the Village, then a commission is formed with the auditor, recorder, and a commissioner to decide what happens with their assets. Mr. Flaiz continued, “Until you get clear of a couple years of that, it is hard for us to tell what’s going to happen.”
Budget Approved Unanimously
After the approval, the Claridon Trustee mentioned that they want to again mitigate tax impacts on taxpayers due to the windfall caused by the real property tax assessment last year.
Parkman Township - Trustee Joyce Peters and Fiscal Officer Denise Villers
Estimated ending General Fund balance as of 1/1/25: $397,951.51; revenue $237,717; ending balance of $635,668.51.
There is also a Road and Bridge fund, a Fire fund and a Road improvement fund (with a negative ending balance.)
Total millage is 10.8 and there are no levies on the ballot.
Mr. Walder said that Parkman was the first entity to volunteer to give back money to taxpayers after the revaluation. He said that the Parkman taxpayers are proud of the fact that you did that in Parkman. Mr. Walder said they are doing a good job managing the money. He said that although the Roads have an ending balance of 80% he felt that was okay. The Fire Fund is high, and he recommended setting up some reserve funds.
In Mr. Walder’s opinion the Parkman Roads are the most in need.
Parkman Trustee said that they are planning a road project for the coming year. They will take $70,000 from the General Fund.
Mr. Walder said that they have to use their ARPA balance.
Parkman Trustee said that it’s already accounted for.
Mr. Flaiz noted that the cash balances are healthy in the General Fund. He also said he would “Give you a pass on Fire as I know that has been a disaster.”
There was a long discussion about the Fire funds and Parkman acknowledged that they will probably need a levy.
Budget Approved Unanimously
Chester Township - Trustees Ken Radtke and Joe Mazzurco as well as Fiscal Officer Patricia Jarrett
Chester opened a Public meeting prior to the beginning of the hearing and closed the public meeting at the conclusion of the hearing.
The estimated General Fund ending balance as of 1/1/2025 is $1,395,076; Revenue $2,024,338; balance $3,343,376.
There are also the following funds: Road and Bridge, Police and Fire Fund.
The total millage is 23.22.
There are four levies on the ballot, which are all renewals: 2 road, 2 police.
Mr. Hitchcock said, “Chester gets a prize - second place for having too much cash.” He noted that the general fund would pay for operation of the entire township for 1 year and 2 months. “ You don’t need taxpayer money for a whole year.”
Mr. Hitchcock said that there would be $1.2 Million left in the Road and Bridge at the end of the year, or 794%; Mr. Hitchcock concluded that this was a “bad budget.” He said that Chester would have $1.7 million in the Fire Fund, which meant they were off by 240%. He continued that they were off by 589% in the Police Fund. He said they were holding too much cash, especially in the General Fund, and he opined that this has been going on too long.
Mr. Flaiz said he had the same issues as Mr. Hitchcock. He also noted that they have two levies on for renewal and yet they have all that cash left. He continued that they have a lot of cash in the general fund. He said, “ I’m in the police department all the time; your facilities are the worst in the western corridor of counties; all this cash, yet your police department is completely deficient from a building perspective. If you keep refusing to fix things, either give money back to the taxpayers or don’t put on a levy.”
Mr. Walder said that a couple things mechanically need to be fixed. He said that his staff looks at transfers in and contingency line items, which are statutory. He said that fixing these items will add to the problem of too much cash. He continued, “I look at the cash balances at the end of next year. You will have over 100%, that’s a lot of cash. There is some justification, but not that much cash.” He also said that the balance in the Road fund shows almost $0. “You can’t do that. You need money for salaries. Fire and Ambulance 71% which is excessive. You need reserves. I’ve preached reserves for years.” He said that Chester had “... over a $10 M budget. You know that things happen. You need a place to get cash. You need to plan for that, not just have money in carryover. Facility age is a factor in figuring out what to reserve. This is the first time I have said this - if you don’t solve this, I’m out (won’t approve). From my view, we all come at this in the same way.”
Mr. Hithcock brought up the road and bridge expenses which he said were $320,000.
Ms. Jarrett said that they “have been transferring into the road fund, but then we had money left. Everything came in over 10% and we didn’t get our projects done. Now we’ve had storms and we’re pushing back road projects again.” Observer Note: If a bid comes in more than 10% over the bid price it has to be rejected. The entity can then revise the bid amount, but it has to be rebid.
Mr. Walder said, “You need 30% carryover to cover costs at the beginning of the year. 1% too little; 70% too much. You have to make it easier to read and understand.”
A Chester Trustee said that they have done the study to set up reserves and that they are almost ready to do that.
Mr. Walder said, “You can have reserve funds for road and bridge for projects, for buildings, for equipment. The problem is that you have none.”
Mr.Hitchcock asked “What do you think the actual ending balance in road would be?” Mr.Walder said he thought it would be $1 million.
Mr.Hitchcock said, “It is actually a million. It has to be changed.”
Budget Not Approved. Mr. Walder voted to approve (to create time to create reserve); Mr. Flaiz and Mr. Hitchcock voted no
Hambden Township - Two representatives
Estimate for General Fund as of 1/1/25: $453,684.57; Revenue $509,087; Total $962,771.57.
Other Funds: Road and Bridge Fund, Fire Fund, Park Fund, Permanent Improvement Fund.
Total millage - 11.95 mills.
Two renewals on the ballot - Park and Road and Bridge.
Mr. Walder noted that the cash carryover in each fund at the end of 2025 showed dramatic improvement this year but still showed 70% carryover in the General Fund. He said, “ You have to go to reserves to get rid of high carryover. Figure out what you are going to spend the money on. Happy to work with you on this, especially in General Fund and Road and Bridge.”
Hambden representatives said that the levy would go into the Road fund.
Mr. Walder said “you tell us where you want that money to go.”
Mr. Hitchcock said that in “ … looking at the cash balances in the General Fund from 2023 - over $500,000; enough to operate for two years. That is egregious. Road and Bridge - $661,000 - operate for four years. Permanent Improvement Fund, this year 2024 total expenditures will be $3,000; How much this year? That tells me you can give taxpayers $300,000.”
Mr. Walder said that they are actually spending (appropriated already) $150,000.
Mr. Walder said that the permanent improvement fund will go away if the new levy money goes into Road and Bridge fund.
The Hambden Representative said that “Our intent is to create a reserve fund.” There was a long discussion about the current Fire Department building and how it might be renovated after the new Fire Department building is built, but the fire department still has to get the land and build the new building.
Mr. Walder noted that all the money for the new Fire Department building is coming from grants, which he said was great, but he said that they also need to plan for their renovation of the old building. He concluded, “Now, we want to get money in reserve for this.”
Mr. Walder said, “You should be able to get these reserves set up before the end of the year.”
Mr. Flaiz said he was aware of the fire department development. He said they could start moving in that direction, but it will be 2-3 years, which is why setting up the reserve would be good. He continued, “If reserves get set up that will make your life way easier with me next year.”
Budget Approved, with Mr. Hitchcock voting no
Munson Township - Trustees Andy Bushman, Jim McCaskey and Nate McDonald as well as Treasurer Todd Ray
The Munson Trustees opened up a public meeting and closed at the conclusion of the hearing.
Estimated Balance of General Fund as of 1/1/25: $407,956.30; Revenue $1,273,298; Total $1,681,254.30
Other Funds: Road and Bridge and Fire Fund.
The total millage is 15.65.
Two renewals levies are on the ballot, both for Fire.
Mr. Hitchcock said, “Budgeting does matter. To tell the taxpayers correct amounts. The General Fund is off by 450% in 2023; Road and Bridge - you have to have cash to pay your people. Budgeting has to be far, far better.” Mr. Hitchcock asked whether there was any cash to buy equipment? He said that there were, “millions of dollars invested in this equipment but no money saved to replace this equipment? I find your budgeting system unacceptable.”
Mr. Walder said that the challenge Munson has is that historically they have done zero based budgeting. He said, “That’s an approach, it’s not transparent. Coming out of zero based budgeting, it takes a long time. How to get out of that mode. Have to realistically decide what you are going to spend. You guys inherited this zero based budgeting, but you’re going to have to figure out how to get out of it.” He continued, that this is the “... hottest budget I have seen…. We know it’s not going to happen”. He continued, “People want to know that you are saving money for big ticket items. It’s going to take time.”
Mr. Flaiz said it was an excellent write up and acknowledged that the Fire Department situation is weird. Observer Note: It appears from the discussion that there is a contract for Fire Department employees that doesn’t go through the Munson budget, but that Munson is responsible for the Fire Department building and equipment.
Budget Approved Unanimously
Russell Township - Trustee Kristina Port and Fiscal Officer Karen Walder
ADP Chief Deputy Administrator Frank Antenucci substituted on the Budget Commission for Mr. Walder.
Estimated General Fund Balance as of 1/1/25: $621,745.13; Revenue: $1,501,860; Balance $2,123,605.13
Other Funds: Road and bridge, Fire Fund, Police, plus nine reserve funds.
The total millage is 26.3 mills.
There are no levies on the ballot.
Mr. Antenucci said that with the General Fund, there was good strategic use of reserve funds. He said this was an excellent way to manage. He noted that the Road and Bridge Fund had only 25% carryover and that all the carryovers in Funds are good. He had a question in the category under salaries $25,000 under event coordinator.
Ms. Port responded, “We have a million plus project for this building. We still need an event coordinator to manage all of that - part-time.” She said they would see what the interest is in utilizing the new building, and then decide if they need someone. She said they may just have someone internally handle it, but if the hours or demand increases then that could translate into a part time position.
Mrs. Walder said that the budget only shows revenue of $7,500 for rental income. The hope would be to balance the revenue with the cost of this position.
Mr. Antenucci said that there was a lot of money coming in with a grant that Senator O’Brien’s office obtained of $370,000.
Mrs. Walder said that “We submitted our budget before we knew about this.”
Mrs. Walder said that the issue is that they have to backfill their reserves (due to receiving the grant). She also said that they couldn’t talk about the Laurel School issue. Observer Note: It appeared from the conversation that there might also be a windfall from Laurel School, but everyone acknowledged that they couldn’t talk about that, which might indicate that this is coming from a settlement that is not yet final.
Mrs. Walder said she was going to recommend taking one-third and returning it to the taxpayers. She said that last year they did this. One-third would be used to reestablish their reserve fund. The last one third would be put toward completing the community building. She said that they want to look into putting in heated sidewalks and that this will be brought up to the trustees at their meeting the next day.
Mr. Antenucci confirmed: “inside millage giving back?”
Ms. Port said “ Yes, we would look at it again. It’s unvoted money.”
Mr. Hitchcock noted that they have $2.2 million in cash in the General Fund. He said that they have done a good job with budgeting and reserves but that the Trustees haven’t always spent the money they said they would spend.
Mrs. Walder said that this amount includes $1.2M that was already encumbered for the building, with $964,000 unencumbered.
Mr. Hitchcock noted that in Road and Bridge it should be closer to 25%. He said that 19% is low.
Mrs. Walder said they have different taxes they use such as the gas tax and Permissive tax and they use those first.
Mr. Flaiz said that the budget was excellent.
Budget Approved Unanimously (Mr. Walder was not present as stated above)
Recess at 12:28 pm until 1:15 pm
August 19, 2024 - Afternoon Session
All Budget Commissioners were present as well as staff listed for the morning session and Kristen Rine (Assistant Prosecutor). Mr. Antenucci was not present. There were no representatives from the press attending.
Others who attended the Geauga County session are listed under that Hearing.
Summary of Afternoon Session:
Auburn Township tabled; Geauga County not approved. All other budgets were approved.
Newbury Township
Estimated General Fund Balance as of 1/1/25: $573,106.95; Revenue $653,896; Balance $1,227,002.95
Other Funds: Fire Fund, Road Improvement Fund, Debt Fund
The total millage is 14 mills.
There are no levies on the ballot.
Mr. Hitchcock said that $874,000 was enough to operate for a year without tax revenue. He said there was the same problem with the Road and Bridge Fund.
One of the Newbury representatives said they are paving Pekin road this year, which will cost $800,000 - $900,000. He said that is triple what they normally spend. He continued that with the Fire Department, they completed the Station and hired six employees, so almost $400,000 - $500,000 is for salaries.
Mr. Hitchcock said they still have too much money.
Mr. Walder said he looks at ending balances at the end of the budget term. He tested some of the mechanics, and they were outstanding. He said it was a good recap write-up. He also said they should consider additional reserve funds.
Mr. Flaiz said that if anything the Road and Bridge might be low. He said you have to appropriate 110% of the cost, so if it comes closer to 100% that results in more carryover.
He said that “in terms of readability this budget is the best I have seen from Newbury. In the past, you suppressed levy money. Now you have to wrap this up. The question is, where are you going with that? What is the long term vision for that levy money? Consider a reserve fund. Don’t collect levy money, then give it back, and you end up with a need you didn’t anticipate. Put it in a reserve, you have it for equipment needs that might come up.”
The Newbury representative said they have a contract with a firm to prepare for a reserve for the Fire fund.
Mr. Walder offered to help with that.
Budget Approved, with Mr. Hitchcock voting no
Huntsburg Township
Estimated General Fund balance as of 1/1/25: $91,953.47; Revenue $365,357; Total $457,310.47.
The Fire Fund balance is negative. Observer Note: See the discussion below that the carryover does not include the revenue they will get from the gas tax, which is why they show a negative balance.
The total millage is 10.5 mills.
A renewal Road and Bridge levy is on the ballot.
Mr. Walder said that the Budget notes are appreciated. He noted that the transfer in from the General Fund was not listed correctly. They were in the wrong location but the numbers are right. Observer Note: This did not seem to be a big issue.
The Huntsburg representative said there would be a levy next year.
Mr. Hitchcock also said that the notes were extremely important. He expressed concern about the road and bridge fund. He said it has to be “a little more honest.”
The Huntsburg representative said that the number doesn’t count gas revenues.
Mr. Hitchcock asked who owned the title to the Fire Department.
The Huntsburg representative said it is in the name of the Fire Department.
Mr Flaiz also said that the notes helped, especially in regards to the Road fund since it is (or will be) $500,000 for two road stabilizations.
Budget Approved Unanimously
Middlefield Township - Five representatives
Estimated Ending General Fund balance as of 1/1/25: $197,435.09; Revenue $261,317; Total $458,752.09.
Other Funds: Road and Bridge, Ambulance Fund.
The total millage is 9.6.
There are no levies on the ballot for November.
Mr. Hitchcock said that in past years they have focused on the Ambulance Fund. He acknowledged that they had established a reserve fund in 2022, but said there was $400,000 in cash as of 12/2023.
The Middlefield representative said that they did an addition which they finished in 2024. $285,000 was paid from ARPA, and the balance came from the Ambulance Fund.
The Middlefield representative continued that they had reduced millage on the Ambulance Fund to reduce inside millage. They are considering doing that again next year. Everything but $200,000 was ARPA out of this year.
Mr. Hitchcock confirmed that the ending balance for 2024 would be $200,000 less.
Mr. Hitchcock reiterated that they need to spend that money.
A Middlefield representative said that they just got the okay to proceed, and that it's on the schedule for 2025.
Mr. Flaiz said that the General Fund numbers were well done. He acknowledged what he said was “Kind of (a) goofy thing with Road and Bridge.” He said that the estimated beginning balance in 2024 was $500,000 in the Ambulance Fund, but Trustees reduced collection.
Mr. Walder said he believed that last year’s beginning balance had an error. He also strongly recommended setting up a reserve fund for Ambulance.
Budget Approved Unanimously
Geauga Trumbull Solid Waste - One representative
Estimated General Fund ending balance 1/1/25: $3,084,076.96; Revenue $2,047,400; Total $5,131,476.96.
All other funds have a zero balance.
Budget Approved Unanimously
Auburn Township - Two representatives including Dan Matsko, Fiscal Officer
The General Fund ending balance is $38,237.87.
Road and bridge had a negative balance of $306,000.
The total millage is 12.3.
There is an additional 0.65 mill Road and Bridge Levy on the ballot for November.
Mr. Walder said that until the Road Levy matter (see next paragraph) is resolved, he couldn’t comment much. He said they are doing a good job of cleaning up.
Mr. Hitchcock was concerned that there wasn’t enough in the General Fund to pay people at the beginning of the year. He also thought that the beginning balance on January 1, 2025 will be well over $200,000 (more than estimated). He acknowledged that Auburn has to remediate three years of a road levy that was deemed to be unlawfully collected. So a total of $750,000 has to be remediated. He said that money has to come out of the road fund or general fund. He said they can’t review these numbers until the money is collected. He said their budget has to be very conservative until this is resolved.
Mr. Flaiz said, “My issue is the $306,000 deficit in Road and Bridge. $262,000 if levy passes, but still won’t be enough.” He said Auburn would have to drastically reduce expenses estimated in Road and Bridge until this gets resolved.
The Auburn representative said that they have appropriated money and that OPWC (Ohio Public Works Commission) money is coming in.
Mr. Flaiz said he wouldn’t have budgeted the expenses.
The Auburn representative said that right now the expense is in the General Fund. We had a plan to resurface a subdivision, but that fell apart.
Mr. Hitchcock asked: Can we even approve the budget?
Mr. Flaiz suggested that they table it, alter their budget, and approve at the hearing the next day.
Both the Auburn trustee and Mr. Flaiz complimented Fiscal Officer Dan Matsko and said that he has done a great job. A motion was approved to table the Auburn budget and rerun the numbers.
Mr. Walder said they need to get rid of expenses and see if it works.
He also said that with the ARPA funds they have to obligate that money and spend it in 2025.
Mr. Flaiz suggested they pay their road employees out of the ARPA fund.
The Auburn representative thanked everyone and especially thanked Assistant Prosecutor Kristin Rine who he said has been very helpful.
Budget Tabled
Geauga County - Attending for the County were Adrian Gorton, Budget Director; Gerald Morgan, County Administrator and Linda Burhenne, Assistant County Administrator
The General Fund ending balance was $4,786799.34.
Millage - 12.9.
2.24 mills Library for a total of 15.
A JFS (Job and Family Services) renewal levy is on the ballot for the fall. It was stated that the other two JFS levies will probably go on the ballot in spring.
Mr. Walder reviewed discussions from 2024 Budget Hearing in which the Budget Commission had asked for a listing of capital projects and expenditures. One of the items was office renovations on the Square that were said to be in the architectural phase.
Mr. Gorton said there was nothing new on that.
There was a long discussion on how the budget was generated, with Mr. Walder expressing concern that some departments’ budget requests were “slashed with no communication to the departments.” He continued, “What’s the point of the hearing if it is going to be arbitrarily changed?”
Mr. Gorton said there is a public hearing, but Mr. Walder said there was no dialogue. Mr. Flaiz agreed, and Mr. Gorton then said “it was a round robin discussion.”
Mr. Walder said that “at least there should be some discussion with the departments.”
Mr. Walder also asked, “ Why would you cut GIS (Geographic Information System) money? You have no authority over that money. I don’t see any legal authority to cut this.”
Mr. Gorton said that they considered the expense listed as a GIS employee to be for maintenance. He said that the Commissioners perform maintenance.
Mr. Walder disputed that the Commissioners were performing maintenance and strongly indicated that the Commissioners have no authority over this GIS fund.
There was a long discussion about the conditions in offices on the Square. Mr. Flaiz said, “The Opera house is an embarrassment.”
Mr. Walder noted that the renovation of the offices on the Square were in “architectural phase” last year, and nothing has happened.
Mr. Flaiz took issue with the estimated beginning balance, and said that “You are presenting a budget and agreeing that it’s off by 100%.“
Mr. Hitchcock asked, “Could we take some of that cash and give it back to the taxpayers?”
Mr. Morgan said, “ Yes, I’m sure the Commissioners would agree to that.”
Mr. Hitchcock said that ”the Commissioners have to provide space for the elected officials. Who is working on designing these areas?”
Mr. Morgan said that they haven’t started on that.
Mr. Hitchcock asked, “Is there any expectation that these spaces will be worked on?”
Mr. Morgan said it would be 2-3 years before they start.
Mr. Hitchcock said, “ I’m disappointed that my office has not been included in any of these discussions. My team works very hard. We collect 100% of taxes due. I keep promising them (his staff) there will be more appropriate space in the future. I would encourage you to have the Commissioners reach out to those who are in this old building to discuss this.”
Mr. Walder said that “ It seems ironic that there is a 2-3 year forward plan, but you want to cancel a maintenance person whose salary comes out of GIS.” He went on to say that “My recommendation was to use the ARPA money to pay the sheriff's salaries…. (If you had done so) You would have had $10 million sitting in the General Fund.”
Budget Not Approved
Mr. Gorton asked about the next step. Mr. Flaiz said that they would review it and make changes.
Budget Commission Regular Business
Minutes: August 5, 2024 minutes were approved as submitted. Minutes are available here.
Geauga Trumbull Solid Waste - New certificate total approved - $5,131,476.96.
Kenston - Amendment # 1 - Approved.
Bainbridge - Amendment # 8 - new special revenue total; new certificate total - Approved.
Geauga County - Amendment # 7 - $10 M to the reserve Capital Fund. This was not approved.
Geauga Public Health - General Fund change to transfer in from fund 6002 - new General Fund total, new total certificate, Approved.
General Discussion
Auburn has changed their meeting trustees’ meeting to tonight; the decision was made to leave Auburn tabled until after that meeting.
This observer asked for budget figures and for slide presentations.
The Budget Commission went into recess until the next morning.
The meeting was adjourned at 3:03 pm
Meeting Reconvened on Tuesday, August 20, 2024 at 9:01 am
Meeting Attendance: Treasurer Chris Hitchcock, Auditor Chuck Walder, and Prosecutor Jim Flaiz. Observer Note: Occasionally one or more members left the meeting and this will be noted.
Staff Attendance: Chief Deputy Treasurer Caroline Mansfield, Deputy Auditors Tammy Most and Kristen Sinatra, and Fiscal Office Manager Pam McMahan.
Russell Park 1545 - Three representatives
Estimated General Fund balance for 1/1/25: $34,883.48; Revenue $5,382.28; Total $40,265.76.
There are no levies on the ballot.
Mr. Hitchcock suggested that they should be getting a 4.5% return on their investments. He said they should talk to other banks. He expressed concern about the General Fund being too high. Mr. Walder said they have a general fund and an acquisition fund.
Mr. Walder said, “we have to house all of your bonds.” He said that since they were coming in today, they went through all the bonds and found that they can’t find a current bond as to all the officers. He said that this has to be corrected.
Budget Approved Unanimously
Chester Park - Two Park Trustees
Estimated General Fund balance as of 1/1/25: $11,149; revenue $14,482; Total $25,631.
There are no levies on the November ballot.
Mr. Hitchcock said this was “very well done, one of the best parks in the county.”
Mr. Flaiz agreed that “ You do a lot with a little bit of money. Very well done.”
Mr. Walder said that Chester should make them whole out of what they got through the funding formula. He suggested that, “ If you need an advocate for that, I would be an advocate. The intention of what we did was to fund the townships, and they could more than fund their parks.” He has asked Chief Deputy Auditor Ron Leyde to review the numbers with them.
Budget Approved Unanimously
Russell’s Citizens Park - One Representative
Estimated beginning General Fund balance 1/1/25: $2,550.42; Revenue $7,982.28; Total $10,532.70.
There are no levies on the November ballot.
Mr. Flaiz asked, “What are you spending the $6,000 on - secretary, bonds, website, accountants, insurance, UAN, office supplies, misc, rent. Are you doing any projects?”
The park representative said they are hopefully going to start on a bridge. The Western Reserve Land Conservancy didn’t approve the location they picked, so they are moving to another location.
Mr. Walder asked, “Upper portion that has these parks, you manage them? Upper preserve has not had good access and so that takes time and money. Every year we seem to be moving the ball down the field.”
Mr. Hitchcock noted $35,000 in expenditures.
Park Representative said Trustees have funded half of it, and we had money in the bank in the general Fund. He said that the money comes from trustees and library.
Budget Approved Unanimously
Geauga Library - Director Kris Carroll and two others
Estimate Balance of General Fund as of 1/1/5: $3,622,976; Revenue $9,713,363.41; Total $13,336,339.41.
The library has two reserve funds.
The total millage is 2.24.
Mr. Walder said that in looking at the mechanics of their budget he had no issue. They have a modest carryover. He questioned the unencumbered vs. encumbered and said those amounts have to be flipped but they will correct this. He acknowledged that the Library has done everything they can to go forward with the new library for Chardon branch.
Director Carroll said it could be the end of week that they have something to announce regarding the Chardon branch.
Mr. Flaiz agreed with Mr. Walder. He said, “ I have some knowledge. I know you have tried very hard…. You put this money away, and I think the goal here is to try to refurbish or build a facility without going back to the taxpayers. That will be a big win…. You have developed a comprehensive plan and good luck with this latest thing.”
Mr. Hitchcock said, “As soon as you have that purchase agreement, go public and please make sure it happens.” He asked, “Will it be within 500 yards of where we are sitting?”
It was agreed that it would be within the city limits of Chardon.
Budget Approved Unanimously
City of Chardon - Three representatives
Estimated General Fund balance as of 1/1/25: $1,364,619; Revenue $9,765,176; Total $11,129,795.
There is also a Police Levy Fund, Fire and Ambulance, Police Pension Fund.
The total millage is 7 mills.
The Fire and EMS renewal levy is on the ballot, with an increase of 1.5 mills.
Mr. Hitchcock noted that because of their income tax side, the police balance appears low from a budget perspective.
A Chardon representative said that part of the revenue comes from the transfer of income tax. It’s part of the General Fund. This amount is a little over $7 million.
Mr. Walder asked about a deficit in Fire, and the Chardon representative said that was correct. Mr. Walder said he hoped they have a contingency fund, which they said they did.
Mr. Flaiz said it looked like they were being conservative with the levy.
Budget Approved Unanimously
Burton Village - Two representatives
Estimated General Fund balance as of 1/1/25: $499,535.23; Revenue $1,079,890; Total $1,579,425.23.
Road Improvement Fund ending balance was $669,000.48.
The total millage is 12.75.
A renewal 2.25 mill Fire and EMS levy is on the November ballot.
Mr. Walder said this was a well done budget. He said he assumed the low carryover was because they get income tax.
Mr. Hitchcock noted that the Road Improvement fund had a large amount.
A Burton representative said they have two big road projects they need to complete next year, and they are not sure how much it is going to cost and wanted to try to have as much money available as they could. He said they don’t pay people out of this fund, which will be used just for these projects. He said they also have a Capital Improvement Fund that can be used.
Mr. Flaiz asked if the revenue from income tax was $1 million and received an affirmative response from the Burton representative.
Budget Approved Unanimously
Burton Library - Three representatives
Estimated General Fund Balance for 1/1/25: $510,108.95; Revenue $1,089,949; Total $1,600,057.95.
The total millage is 1.7 (part of Berkshire Local School District).
Mr. Walder said this was a well done budget, and all agreed.
Budget Approved -Unanimously
West Geauga Recreation District - One representative
Estimated General Fund balance as of 1/1/25: $21,123.16; Revenue $89,939; Total $111,062.16.
The total millage is 0.2 outside.
Mr. Walder, Mr. Hitchcock and Mr. Flaiz all agreed that they do a lot with very little money.
Budget Approved Unanimously
Middlefield Village - Three representatives, including Mayor Ben Garlich
Estimated General Fund balance as of 1/1/25: $1,099,140.97; Revenue $2,114,082.50; Total $3,231,223.47.
There is also a Police Fund and Ambulance Fund. An ordinance was passed last year to suppress the Ambulance and Emergency levy.
The total millage is 5 mills,
The police levy is on the ballot for a renewal of 2 mill.
Mr. Hitchcock said this was a very good budget, and a great change from prior years.
Mr. Walder said that he appreciated that they plan to suppress the levy for a second year.
Mr. Walder continued that they were looking at all downward trends, squeezing money out because they are giving back to the taxpayers. He said, “You’re doing great work. Keep doing it.”
Budget Approved Unanimously (Mr. Flaiz was not in the room for this vote.)
(Middlefield) East Geauga Fire- Mr. Flaiz returns.
Estimated Balance General Fund for 1/1/25: $415,459.95; Revenue $1,100,590; Total $1,516,049.95
There are 2 levies totaling 5.7 mills.
Mr. Hitchcock asked, “What constitutes the Fire District. Geographic?”
Mayor Garlich said that, “Yes, it was Middlefield Village and Middlefield Township plus the Fire Department independently bills Huntsburg Township. The Fire Department owns the equipment and this is subcontracted to Middlefield Volunteer Fire Dept which is audited independently. They are not audited by the State. They are not a public entity, mostly funded by the taxpayers because of funding from Middlefield Village.”
Mr. Walder said that not everyone has a view into the books with situations like this.
Mr. Flaiz agreed but said that these are all public records that have to be turned over upon request.
Budget Approved Unanimously
South Russell Village - Mayor Dr. William Koons and Fiscal Officer Danielle Romanowski
Estimated General Fund Balance as of 1/1/25: $353,004; Revenue: $1,258,426; Total $1,611,430.
There is also a Police and Safety Fund, Operating Fund and Road and Bridge Fund.
They have a reserve fund.
The total millage is 13.45 mills.
A 2.75 mill renewal police levy is on the ballot.
Mr. Hitchcock asked the amount of income tax revenue. South Russell said it was $1.6 million.
Mr. Flaiz said that low cash balances were a little concerning, but he said they always do a great job.
Mr. Walder said that their Cash balances are good but Road and bridge has high amounts. He asked about the Reserve fund and what it would be used for. South Russell said this would be for equipment.
There was a discussion of major projects including Bell Road East and the salt dome. They also did some major stormwater projects.
Mr. Hitchcock said their budget was close to ideal, but he would increase ending balances.
Ms. Sinatra said that they had also passed a mitigation resolution, for which Mr. Walder commended them.
Budget Approved Unanimously
Geauga Park District - Park Board President Ray Guarino, Executive Director John Oros, and Dawn Sweeney, Finance Director
Estimated General Fund Balance as of 1/1/25: $3,366,522.32; Revenue $7,158,503; Total $10,525,025.32.
The total millage is 2.6.
Mr. Walder noted that anticipated cash carryover in the General Fund last year was 70% and now is 60%, so they are on a decline. He said they were approaching where they should be. He also noted that in the minutes of their submission, it was stated that the County Auditor sets property values and collects taxes. He clarified that actually the County Treasurer collects taxes.
Mr. Flaiz noted that there has been a course correction regarding cash balances, and they would have to see if they actually go down. “If you approach the $5 million you’ll get in trouble with us.”
Mr. Hitchcock said: “I would only say, this is the second year in a row I didn’t have a single caution or highlight with the budget in 14 years. You’re in a much better position…. Keep it going.”
Budget Approved Unanimously
Aquilla Village - Five representatives, including Mayor Richard Wolfe
Estimated General Fund Balance as of 1/1/25: $81,339.83; Revenue $58,528.77; Total $139,868.60.
Road Levy Fund ending balance was negative.
Aquila is not collecting money on their lighting assessment.
The total millage is 10.53, but there are no levies on the ballot and they are not eligible to receive money.
Observer Note: Aquilla Village has a ballot issue to determine if they will dissolve the village and join Claridon Township.
Mr. Flaiz said, “You are in a dire situation not of your own making. You can make up for negative balances, but if the issue doesn’t pass and the Village continues, you are a year or two away from bankruptcy.” He said that if the measure passes, taxpayers will see a significant decrease in taxes. He recognized that Aquilla has always done a lot with a little, but it’s not sustainable.
Mayor Wolfe said that they have a good relationship with Claridon. He was hopeful that the measure would pass, but he acknowledged that they are in limbo.
Mr. Flaiz explained that, “Once the election is certified and if the measure passes, then a commission is formed to wind things down.” He said that technically the Village would cease to exist once the election is certified.
Mr. Walder said, “You demonstrated a lot of fortitude and put your personal opinion aside.” He concluded that although this budget was awkward, they are going forward and issuing a certificate even though it might not be needed. He said that they should feel free to reach out to the Budget Commission as needed.
Budget Approved Unanimously
Auburn Township
Observer Note: This is a revisit of Auburn Township after it was tabled the day before.
Auburn is moving revenue out of the General Fund into Road and Bridge. They also reduced expenditures toward mitigation of the funds that have to be used to repay the levy (see prior day’s discussion).
The total millage is 12.3 (distribution changed not total).
Mr. Walder said that the ending cash balances are better, and they will draw down Road and Bridge to mitigate the $750,000.
Ms. Sinatra said that salaries are coming out of the gas fund.
Mr. Walder made a motion to approve the budget with these changes.
Budget Approved Unanimously
Chester Township - One representative
Observer Note: Chester Township budget was not approved the day before because of high cash balances in several funds. There had been no indication that a reserve fund would be set up.
The Chester Township representative said that they have a meeting this Friday, August 23 at 7 am to set up a reserve fund.
Mr. Walder said, “If you want, we can have a meeting on Friday or Monday to consider this after the Chester meeting. Suspend hearing and reconvene Monday morning.”
Public Comment: This observer asked what would happen regarding the Geauga County budget, since it was not approved. Mr. Walder said that for those entities who reached out, they made adjustments (Auburn) or rescheduled (Chester Township). He said Geauga County did not reach out. This Observer asked for confirmation of the process for Geauga County. Mr. Walder said that staff would review options and present them to the Budget Commission at the next meeting. All budgets had to be submitted to the Budget Commission by July, and then all budgets have to be submitted to the State by September 1st. Observer Note: This will be addressed in the LWVGeauga Budget Commission Observer Report for August 30, 2024 when published.
Adjourned at 10:57 am
Next Meeting: Special Meeting for Chester Township and Geauga County for Monday, August 26 at 9 am in the Auditor’s Conference Room at 231 Main Street, Chardon, Ohio. A second Special meeting was scheduled for Friday, August 30, 2024. The next regular meeting will be Monday, September 16 at 10 am. The Monday, September 2 meeting was canceled due to the Labor Day holiday.
Observer: Gail Roussey
Editor: Sarah McGlone
Reviewer: Carol Benton
Submitted: 9/8/24
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