Budget Commission Denies Telling Geauga Entities to “Spend, Spend, Spend”
Budget Commission Special Meeting – June 27, 2024
Meeting Details: The Geauga County Budget Commission met in Special Session on Thursday, June 27, 2024 at 2:00 pm in the Auditor's Conference Room, 215 Main Street, Chardon, Ohio. This meeting was in person with a virtual option via MS Teams.
Meeting Attendance: Chief Deputy Treasurer Caroline Mansfield (substituting for Treasurer Chris Hitchcock, who attended virtually), Auditor Chuck Walder, and Prosecutor Jim Flaiz.
Staff Attendance: Chief Deputy Auditor Ron Leyde, Deputy Auditors Tammy Most and Kristen Sinatra, and Fiscal Office Manager Pam McMahan.
County Staff: Geauga County Budget and Finance Manager Adrian Gorton (virtual).
Members of the Public: Auburn Township Resident Diane Jones, Chagrin Valley Times Journalist Anastasia Nicholas, and this LWV Geauga Observer (all virtual).
The meeting was called to order at 2:00 pm.
Minutes: Minutes from the Regular Meeting on June 17, 2024 were approved and are available here.
The following Revenue Certifications were approved:
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Kenston Local School District - Amendment #4. $51,470,495.44 in the general fund, $2,346,056.03 in special revenue funds, $6,286,058.96 in debt service funds, $1,618,926.40 in capital project funds, $2,247,609.69 in enterprise funds, $9,421,724.58 in internal service funds, and $57,510.47 in fiduciary funds for a total of $73,448,381.57. Appropriations do not exceed revenue.
Kenston’s amendment certified the ending balances for the district’s fiscal year (FY). Observer Note: The Fiscal Year for school districts ends on June 30. The first five amendments reflect each of Geauga County’s school districts’ 2023-24 fiscal year-ending balances. It was noted that the total revenue amount had increased approximately $2 million since the district’s last amendment.
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Berkshire Local Schools - Amendment #8. $25,303,576.90 in the general fund, $3,723,035.78 in special revenue funds, $1,526,683.24 in debt service funds, $3,968,034.72 in capital project funds, $994,402.42 in enterprise funds, $551,678.24 in internal service funds, and $176,921.58 in fiduciary funds for a total of $36,244,332.88. Appropriations do not exceed revenue.
Berkshire’s amendment certified the ending balances for the district’s FY. It was noted that the total revenue amount had increased approximately $1.5 million since the beginning of the FY.
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Cardinal Local Schools - Amendment #2. $20,134,139.83 in the general fund, $3,056,334.36 in special revenue funds, $2,911,732.21 in debt service funds, $1,407,996.87 in capital project funds, $782,592.84 in enterprise funds, $49,793.04 in internal service funds, and $59,636.87 in fiduciary funds for a total of $28,402,226.02. Appropriations do not exceed revenue.
Cardinal’s amendment certified the ending balances for the district’s FY. It was noted that the total revenue amount had increased approximately $2.5 million since the beginning of the FY.
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Chardon Local School District - Amendment #6. $62,632,124.06 in the general fund, $7,434,948.05 in special revenue funds, $434,341.20 in debt service funds, $3,111,443.05 in capital project funds, $8,469,996.86 in internal service funds, and $217,356.78 in fiduciary funds for a total of $82,300,210.00. Appropriations do not exceed revenue.
Chardon Schools’ amendment certified the ending balances for the district’s FY. It was noted that the total revenue amount had decreased by $504,387 since the district’s last amendment.
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West Geauga Local School District - Amendment #4. $58,571,036.64 in the general fund, $8,351,223.71 in special revenue funds, $8,755,817.65 in capital project funds, $1,750,997.07 in enterprise funds, $277,962.54 in internal service funds, and $116,693.68 in fiduciary funds for a total of $77,823,731.29. Appropriations do not exceed revenue.
West Geauga’s amendment certified the ending balances for the district’s FY. It was noted that the total revenue amount had increased by $7,784,553.20 since the district’s last amendment. Mr. Walder hypothesized that some of this large increase in the revenue amount may have been caused by the closing of some encumbrances at the end of the FY: “They probably budgeted this money to be spent, and for one reason or another, they didn't spend it. So when they close it, it comes back in as cash.” The Budget Commissioners also noted that some of this additional revenue came from West Geauga’s 20 mill floor adjustment. Reviewer Note: See explanation of the 20 mill floor from Auditor Walder here.
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Newbury Township - Amendment #2. $1,463,330.95 in the general fund, $5,519,690.75 in special revenue funds, $69,900.00 in debt service funds, and $801,254.34 in capital project funds for a total of $7,854,176.04. Appropriations do not exceed revenue.
Newbury’s amendment reflected a debt service fund increase of $69,900.
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Hambden Township - Amendment #2. $1,051,603.36 in the general fund, $3,292,672.32 in special revenue funds, and $318,082.01 in capital project funds for a total of $4,662,357.69.
Hambden’s amendment certified a special revenue fire levy fund increase of $78,000.
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City of Chardon - Amendment #2. $12,373,809.82 in the general fund, $9,655,236.97 in special revenue funds, $372,412.54 in debt service funds, $7,347,052.18 in capital project funds, $7,395,737.57 in enterprise funds, $8,054.18 in internal service funds, and $186,201.12 in fiduciary funds for a total of $37,338,504.38.
The City of Chardon’s amendment reflected an increase of $12,270 in the parks and recreation special revenue fund.
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Geauga County - Amendment #6. $54,612,226.17 in the general fund, $123,469,201.24 in special revenue funds, $5,572,596.38 in debt service funds, $1,256,502.32 in special assessment funds, $29,837,581.61 in capital project funds, $16,711,930.52 in enterprise funds, $1,439,886.67 in internal service funds, and $4,138,083.61 in fiduciary funds for a total of $237,038,008.52.
Geauga County’s amendment certified increases in both the Mental Health ADAMS (Alcohol, Drug Addiction and Mental Health Services) Board fund and the Water Resources Sewer and Water fund for a total increase of $168,799.18.
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Montville Township - Amendment #4. $382,466.50 in the general fund, $1,527,491.04 in special revenue funds, $205,000.00 in capital project funds, and $215.65 in fiduciary funds for a total of $2,115,173.19.
Montville’s amendment established two capital project reserve funds totalling $205,000. The first is a general fund reserve fund for improvements and updates for various buildings with a $40,000 contribution this year and a maximum funding of $500,000 over 10 years. The second is a road reserve fund in the amount of $165,000. Observer Note: This amendment was tabled at the June 17, 2024 Budget Commission Meeting until Montville provided more information about what was a part of the general fund reserve fund. At this meeting, Montville gave the Budget Commission details about items that may be covered by this reserve fund, including a new dry fire hydrant on township property, replacement of the roof of a township building, replacement of the community center generator, and HVAC and plumbing repairs/replacements.
After approving Montville’s revenue certification, the Budget Commissioners voted to acknowledge the creation of the reserve funds. Observer Note: Approval of the Revenue Certification followed by a separate acknowledgement of the creation of the reserve funds was a procedural requirement, according to Auditor's Office Staff.
The following Revenue Certification was re-signed:
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Bainbridge Township - Amendment #6. $4,230,348.65 in the general fund, $19,308,648.24 in special revenue funds, $2,015,383.34 in debt service funds, $2,497,440.76 in capital project funds, and $539.02 in fiduciary funds for a total of $28,052,360.01. Appropriations do not exceed revenue.
Bainbridge’s certification had to be re-signed due to a clerical error.
The following Revenue Certification was tabled:
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West Geauga Local Schools - Amendment #1 for FY 2024-25. Observer Note: The numbers associated with this amendment were not shared at this meeting. However, Auditor’s Office Staff stated that they would be made available to this observer when this amendment was reconsidered by the Budget Commission at its next meeting (details below).
West Geauga submitted its first amendment for the new FY that begins on July 1, 2024. After much discussion, the Budget Commissioners decided that they could not consider an amendment for the new FY until that FY has actually started. Mr. Walder indicated that this requirement is the same for all entities appearing before the Budget Commission and stated: “We're not trying to be difficult. We're trying to be lawful.”
Ms. Sinatra and Ms. Most said that their communication with West Geauga Treasurer Karen Pavlat indicated that the district needs this revenue certification in place before the Budget Commission’s next meeting, which is scheduled for July 15, 2024 at 10:00 am. Therefore, the Budget Commissioners voted to schedule a Special Meeting for Monday, July 1, 2024 at 9:45 am to consider the West G amendment as well as to conduct any other regular business.
Other Business:
Ms. Sinatra provided the Budget Commissioners with draft copies of two forms. One form will be used by entities when they submit a revenue certification/amended certified request, and it requires the following information: entity name, date, the fund name and number, the current fund balance, the increase/decrease amount, the new fund balance after this change, an explanation for the request, whether or not any documentation is provided with the request, the Resolution/Ordinance number, and the approval date. The second form will be used by entities when submitting supplemental appropriations, and it requests the following information: entity name, fund number and name, the previous balance, the supplemental appropriation amount, the new appropriation total amount, the Resolution number, and the approval date.
Mr. Walder said he thought the forms were a good idea and asked Ms. Sinatra to circulate the forms internally for staff to review. It was noted that these forms will be introduced at the Budget Hearings in August.
Mr. Leyde has created an isolated departmental fund in order to identify revenue and expenditures associated with each DD lease. The Budget Commissioners voted that this action was sufficient to resolve their previously voiced objection to the lack of transparency and accountability regarding DD’s leases. Observer Note: See the Observer Report for the March 18, 2024 Budget Commission Meeting for more information about the Budget Commission’s concerns regarding DD’s leases.
Discussion:
Mr. Walder stated that he had seen an online video of a recent County Commissioners’ meeting at which he said “...it was stated that the Budget Commission is telling townships to ‘spend, spend, spend.’ And I think that's an irresponsible statement to make, especially coming from a Commissioner who, since my tenure here, has never attended a Budget Commission meeting. Our message has been consistent to townships, villages, cities, schools, parks, all entities that they need to justify their need. If they don't justify their need, our duty is to return tax money to taxpayers. We don't determine spending patterns. We don't tell people to spend. We do tell people that if you allocated money to spend on something and you don't spend it, then it's going to be considered to be returned to taxpayers. That's not the same as telling people to spend.”
Mr. Walder opined that “... it is politically popular for (County) Commissioners to cast aspersions on this Board, simply because they can.” He added that he planned to personally attend or send a representative to all County Commissioners’ meetings going forward as “a check” against this.
Mr. Flaiz noted that the County Commissioners do not post videos of their meetings and wondered how Mr. Walder found this video online. Mr. Walder stated that it was posted by a County resident. Mr. Flaiz wanted to know how he could find those videos and Mr. Walder said he would send him the link. Observer Note: Videos of County Commissioners’ Meetings are recorded by private Geauga citizens and posted on their website here. Reviewer Note: This comment occurred at about 20 minutes into the June 18 County Commissioners’ meeting during a discussion led by County Commissioner Tim Lennon. This discussion initially concerned whether the Chief Deputy Treasurer should have a requested raise. See Observer Report for Board of County Commissioners meeting for June 18, 2024 for more information. This is the comment by Mr. Lennon that Mr. Walder seems to have taken exception to: “I know there’s been this trend from say the Budget Commission, talking to Townships and even to the County, to spend, spend, spend. Right, spend it. You’ve got it, spend it.”
Mr. Hitchcock suggested that the Budget Commission send a letter to all taxing entities in the County “... correcting that misperception that was provided by a Commissioner.” Mr. Flaiz agreed that “...we should set the record straight,” and Mr. Walder concurred.
Public Comment:
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This observer requested clarifications regarding 1) the Budget Commission’s vote on the DD lease issue and 2) the new revenue certification and supplemental appropriations submission forms. This clarifying information is included where these topics are covered in the sections above. This observer also asked if the Budget Hearing schedule marked “draft” that was emailed to LWV Geauga was ok to share with the public, and permission was given to do so. The 2025 Budget Hearing Schedule is as follows:
2025 BUDGET HEARING SCHEDULE
Monday, August 19, 2024
9:00 am
Thompson Township & Thompson Park
Bainbridge Township
Troy Township
Chardon Township
Burton Township
Montville Township
10:00 am
Claridon Township
Parkman Township
Chester Township
Hambden Township
Munson Township
Russell Township
lunch at approximately 12:15 pm
1:15 pm
Newbury Township
Huntsburg Township
Middlefield Township
Auburn Township
Geauga Trumbull Solid Waste
Geauga County
Tuesday, August 20, 2024
9:00 am
Russell Park 1545
Chester Park
Russell Citizens Park
Geauga Library
City of Chardon
Burton Village
Burton Library
West Geauga Recreation District
9:45 am
Middlefield Village & East Geauga Fire
South Russell Village
Geauga Park District
Aquilla Village
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Mr. Gorton thanked Mr. Leyde for his work on the DD lease matter. He also asked the Budget Commissioners about the best way to reflect unused appropriations at the end of the year so the County tax budget would be more accurate. Mr. Gorton noted that about 10% of County appropriations go unused on average, and he was considering reflecting this in a line item in the tax budget. Mr. Walder said that however Mr. Gorton chooses to handle unused appropriations in the County tax budget, he will need to explain it in full to the Budget Commission when he appears at the County’s Budget Hearing in August. Reviewer Note: Mr. Gorton presented the County Budget Report at the County Commissioners’ meeting on July 2, 2024. Although he mentioned unused appropriations, they were not included as a line item. After a question about carryover, he did clarify that most of the unused appropriations money does end up as carryover. For 2025, carryover is estimated to be $8.5 Million. The Observer Report for the July 2, 2024 County Commissioners’ meeting will be available at www.lwvgeauga.org when published.
The meeting was adjourned at 2:46 pm.
Next Meeting: Special Meeting for 2024-2025 West Geauga LSD Revenue Certification and Regular Business on Monday, July 1 at 9:45 am in the Auditor’s Conference Room at 215 Main Street, Chardon, Ohio. The next Regular Meeting will be Monday, July 15 at 10:00 am in the Auditor’s Conference Room at 215 Main Street, Chardon, Ohio.
Observer: Sarah McGlone
Editor: Anne Ondrey
Reviewer: Gail Roussey
Submitted: 7/4/24
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