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Budget Commission Special Meeting – August 7, 2023

Meeting Details: The Geauga County Budget Commission met in Special Session on Monday, August 7, 2023 at 9:07 am in the Auditor’s Conference Room at 215 Main Street, Chardon, Ohio. This meeting was in person with a virtual option via MS Teams.

Meeting Attendance: Prosecutor Jim Flaiz, Auditor Chuck Walder, and Treasurer Chris Hitchcock.

Staff Attendance: Chief Deputy Auditor Ron Leyde, Deputy Auditors Tammy Most and Kristen Sinatra, and Fiscal Office Manager Pam McMahan.

County/School/Township/Village Representatives: ADP Chief Deputy Administrator Frank Antenucci.

There were two parts to this Special Meeting of the Budget Commission: 1) a work session for annual budget reviews and 2) an organizational meeting for the upcoming year during which regular business was also conducted. 

Annual Budget Review Work Session Highlights:

• All Budgets Submitted. All entity budgets have been submitted to the Budget Commission ahead of the 2024 Budget Hearings set to occur August 21-22. 

• Chardon Township Budget Concerns. The Budget Commissioners asked the Auditor's Office staff if there were any concerns after their cursory review of the submitted budgets. A lengthy discussion of Chardon Township’s zero based budgeting followed. Mr. Walder stated that the problem with this practice is that if an entity overestimates their resources- as Chardon has done in their 2024 budget- then the Budget Commission is forced to reduce their appropriations. Mr. Hitchcock said that Chardon has been using zero based budgeting for years, noting “... it's been getting progressively worse. And now it is the worst it has ever been. So if their intention is to get our attention, it has worked because we cannot allow this practice to continue with a negative estimated cash balance.” 

At first, Mr. Walder suggested the Budget Commission reduce appropriations from the general and road and bridge funds to rectify the overages in those funds. However, he later revised his opinion and stated that it would be better for Chardon Township to craft its own solution rather than have one crafted for them by the Budget Commission. Mr. Hitchcock moved that the Budget Commission notify the Chardon Township Trustees and Fiscal Officer via letter about their concerns. Mr. Walder added that the letter should spell out that Chardon Township has overestimated their revenue and therefore must provide the Budget Commission with proposed budget reductions to correct the overages at the Budget Hearings. This letter will be sent in advance of the Budget Hearings.  

Mr. Walder pointed out that one of Chardon’s levies on the ballot in November would fix the overage in the road and bridges fund if it passes, so the Budget Commissioners could allow a negative balance in that fund to stand with the understanding that appropriations will be reduced if the levy fails. However, the general fund overage still must be fixed at the Budget Hearings.    

Mr. Flaiz stated his intent to inquire about Chardon’s current year expenses at the Budget Hearings because their estimated general fund expenses are the highest they have ever been. 

• 2023 Balance Comparisons. The Budget Commissioners were provided with spreadsheets comparing the 2023 actual beginning balances with the 2023 balances reported in the budgets for each entity by Auditor’s Office staff. Those numbers should be the same, but in a few cases they were not. The Budget Commissioners will be able to ask entities about any discrepancies at the Budget Hearings.

• November Ballot Levies. The Auditor’s Office staff shared a list of all 26 levies going before Geauga County voters in November. Mr. Walder expressed concern that many of these levies are going to take effect alongside property reappraisals that are likely to  result in large increases in Geauga property values and therefore property taxes: “My worry is people are going to be voting thinking okay, it's going to cost this X number of dollars. And then if the valuations are going to climb, we're gonna get this rush of people saying "I want you to lower the value of my property, because I can't afford my taxes anymore.” Mr. Walder made clear that the Auditor's Office cannot artificially lower property values to reduce taxes owed by Geauga property owners. 

Reviewer Comment: Further clarification from Auditor Walder included the following information:  The Sexenniel (every six year) reappraisal for all of Geauga County is scheduled to be completed and submitted to the State Department of Taxation this Fall.  The State will make its determination before final values are implemented.  The changes will be reflected in the January 2024 tax bill.   Residents may then file appeals against those values beginning in the first quarter of 2024 and they will be heard by the BoR (Board of Revision)throughout 2024.

• Claridon Township General Fund Balance. Mr. Hitchcock noted that Claridon Township appears to have an excess cash balance in their general fund. He observed that its 2022 actual cash balance has enough money for 2.5 years of funding without any additional tax revenue. Claridon Township will be asked about this at the Budget Hearings.

The Budget Commission work session was adjourned at 10:04am. The organizational meeting was called to order at 10:05am.

Organizational Meeting 

Minutes: Minutes from the Special Meeting on 7/24/23 were approved.  

Organizational Business:

• Chairperson. Mr. Walder moved to appoint Mr. Flaiz as Chairperson and Mr. Hitchcock as Vice Chairperson. The motion was approved.

• Meeting schedule. Mr. Flaiz moved that Budget Commission meetings continue to occur on the first and third Mondays of the month at 10:00am in the Auditor’s Conference Room. The motion passed.

• Alternates. Mr. Hitchcock appointed Chief Deputy Treasurer Caroline Mansfield and Deputy Treasurer Donna Borsi as his alternates. Mr. Walder appointed ADP Chief Deputy Administrator Frank Antenucci, Chief Compliance Officer & Administrator Kate Jacob, Chief Deputy Auditor Ron Leyde, and Fiscal Office Manager Pam McMahan as his alternates. Mr. Flaiz appointed Assistant Prosecutor Kristen Rine and First Assistant Prosecutor Laura LaChapelle as his alternates.

• Annual fund approval. Each year, the Budget Commission votes on re-approving the distribution of undivided local government funds (total amount= $2,065,704) as well as the distribution of the estimated Geauga Public Library funds (total amount = $4,134,647) for the upcoming year. Both of these distributions were approved for 2024.  

Observer Comment: Follow-up communication with the Auditor’s Office clarified that the undivided local government funds are distributed as follows: 38% to the County and $15,000 to each City, Township and Village located wholly in the county. For any Township, Village, or City not located wholly in the county, the distribution is based on one dollar per capita within the boundaries of Geauga County.  All excess is distributed proportionately based upon population. Population numbers are based on the most recent Federal Census. The distribution of the library fund is based on an agreement between Geauga Public Library and Burton Public Library, with the Geauga Public Library receiving 84.6%, Burton Public Library receiving 14.9%, and Thompson (0.08%), Russell Citizens (0.08%), Russell 1545 (0.21%) and Chester (0.08%) Parks each receiving a fraction of a percent. 

• 2024 Tax Percentage of Collection. Mr. Hitchcock advised the other Budget Commissioners that the 2024 percentage of tax collection is estimated to be 98%.

Reviewer Note:  This means that the Treasurer believes that they will be able to collect 98% of taxes that are due.

Revenue Certifications:

• Munson Township- Amendment #3 - $1,125,210.31 in the general fund, $4,275,101.15 in special revenue funds, $200,000.00 in capital project funds, and $2,022.00 in special assessments funds for a total of $5,602,333.45. 

Munson Township’s request to increase their scholarship fund by $3,954 was approved.

• Geauga County- Amendment #9- $46,242,857.46 in the general fund, $129,580,959.53 in special revenue funds, $6,279,092.87 in debt service funds, $1,254,159.50 in special assessment funds, $28,193,204.47 in capital project funds, $18,063,060.25 in enterprise funds, $1,206,807.93 in internal service funds, and $3,757,550.66 in fiduciary funds for a total of $234,577,692.67.

The increase of $75,000 in special revenue fund #2001: Mental Health- ADAMS Board was approved. However, the request for a new special election fund for the Board of Elections in the amount of $99,248 was tabled because the County Commissioners have not approved it yet. Mr Walder opined that “...as a board, we should not be doing preemptive certifications, we should do certifications after they've been approved through the legislative authorities.”

Regular Business: 

• Bainbridge Township millage shift. The Budget Commissioners accepted Bainbridge Township’s resolution to shift 0.2 Mils of their inside general fund millage to the road and bridge fund. 

• Chester Township millage shift. The Budget Commission also accepted Chester Township’s resolution to reallocate 1.5 Mils from the road and bridge fund back to their general fund.

General Discussion:

• Geauga Park District (GPD) Communication. The Budget Commissioners received a letter from GPD Executive Director John Oros stating that the State of Ohio Budget recently passed by the Ohio General Assembly contained a revision to the Ohio Revised Code (ORC) granting 1545 park districts the authority to have renewal levies. The letter stated that Shelley Wilson of the Ohio Department of Taxation has assured GPD that it has no intention of pursuing them for past improperly renewed levies from the time period before the ORC was changed. The Auditor’s Office will reach out to Shelley Wilson to ensure that this is indeed accurate.

Public Comment: 

This observer asked for clarification on whether the Geauga County special election fund was tabled or denied (it was tabled) and confirmed that the Budget Hearing location will be the Auditor’s Appraisal Room. 

More Information and Posted Minutes: Available on Auditor website

Next Meeting: Annual Tax Budget Hearings on August 21 & 22, both days starting at 9:00 am in the Auditor’s Appraisal Room at 231 Main Street, Chardon, Ohio.

Name of Observer:  Sarah McGlone

Name of Reviewer: Gail Roussey

Submitted 8/8/2023

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