Budget Commission Hypothesizes that Property Tax Abolishment May Result in Lawsuits Regarding Government Bonds and Loans
Budget Commission Meeting – November 17, 2025
Meeting Details: The Geauga County Budget Commission met in Regular Session on Monday, November 17, 2025 at 10:00 am in the Auditor's Conference Room, 215 Main Street, Chardon, Ohio. The meeting was in person with a virtual attendance option via MS Teams. To attend Budget Commission meetings virtually via MS Teams, email an invitation request to Pam McMahan at PMcMahan@geauga.oh.gov.
Meeting Attendance: Prosecutor Jim Flaiz, Treasurer Chris Hitchcock, and Auditor Chuck Walder.
Staff Attendance: Deputy Auditors Tammy Most and Kristen Sinatra, Chief Operations Officer Pam McMahan, and ADP (Automatic Data Processing) Chief Deputy Administrator Frank Antenucci.
County Staff: Geauga Public Health Finance Director Katie Taylor and Budget and Finance Manager Adrian Gorton (virtual).
Members of the Public: This LWV Geauga Observer (virtual).
The meeting was called to order at 10:01 am.
Minutes: Minutes for the Regular Meeting on November 3, 2025 were approved and will be available here when published.
The following Revenue Certificates were approved:
Reviewer Note: An explanation of the different types of funds in revenue certifications can be found
here.
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Auburn Township - Amendment #2. $1,064,695.30 in the general fund, $5,606,831.78 in special revenue funds, $217,160.00 in debt service funds, and $282,270.21 in capital project funds for a total of $7,170,957.29.
This amendment certified a $60,000 increase to the miscellaneous capital project fund reserve. It was stated that the purpose of this “miscellaneous” reserve fund is to purchase a dump truck.
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Geauga County - Amendment #14 - $69,339,402.59 in the general fund, $126,792,701.84 in special revenue funds, $5,172,649.58 in debt service funds, $1,143,702.06 in special assessment funds, $31,045,528.76 in capital project funds, $52,255,044.13 in enterprise funds, $1,759,600.37 in internal service funds, and $4,706,706.85 in fiduciary funds for a total of $292,215,336.18.
Geauga County’s amendment reflected a special revenue adjustment of $1,026,008.70.
Other Business:
The Budget Commission voted to acknowledge a Geauga Trumbull Solid Waste Appropriations Transfer reflecting decreases in workers’ compensation and project contracts and an increase in salaries for a net change of $0.
The following supplemental appropriations were submitted by GPH:
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$22,400.00 from Fund 6002 (General Fund) to Salaries and Medicare
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$4,445.31 from Fund 6004 (Trailer Park) to Contract Services
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$173,367.02 from Fund 6005 (Food Services) to Contract Services
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$48,898.39 from Fund 6011 (Private Water Systems) to Contract Services
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$6,667.96 from Fund 6018 (Swimming Pool) to Contract Services
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$300,058.30 from Fund 6023 (Sewage Treatment System) to Contract Services
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$3,333.98 from Fund 6030 (Emergency Response) to Contract Services
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$44,453.08 from Fund 6040 (Injury Prevention) to Contract Services
Observer Note: GPH requested numerous fund balance adjustments that were tabled at the September 29, 2025 Budget Commission Meeting. At the November 3, 2025 Budget Commission Meeting, Ms. Sinatra explained that first GPH needed to get its supplemental appropriations approved by the Budget Commission, and then the fund balance adjustments could proceed.
Geauga Public Health Finance Director Katie Taylor explained that the first appropriation transfer listed was “just to get us through the end of the year.” She said the rest of the supplemental appropriations were approved by the GPH Board at a special meeting on November 10, 2025 in order to get the ball rolling on the fund balance adjustments; the GPH Board also approved the establishment of a new revenue line item necessary in order to do the fund balance adjustments at this special meeting. Ms. Sinatra said that the Auditor’s Office requested a separate revenue account in order to increase transparency and prevent the fund balance adjustments “showing expense to expense"(i.e., transfers from one expense account to another, which isn’t allowed).
Ms. Taylor noted that the various appropriations transfers to Contract Services reflect the fact that GPH will be paying Lake County through Contract Services going forward. Ms. Sinatra explained that previously GPH had been paying Lake County out of the General Fund. Mr. Walder expressed the opinion that moving money to pay Lake County into Contract Services was “a cleaner solution” because there is in fact a contractual relationship between GPH and Lake County. Mr. Flaiz agreed.
Ms. Taylor expressed a desire to be sure that she gets the Budget Commission everything it needs to consider GPH’s fund balance adjustments and cash transfers. Auditor’s Office staff have been working with Ms. Taylor on this matter and will continue to do so. Mr. Walder provided background information on his desire to have a Geauga County employee involved in the fiscal side of GPH operations. Observer Note: See the June 30, 2025 Budget Commission LWV Geauga Observer Report for more information. He noted that figuring out the best way to handle the GPH financials is a process that will likely “take a few iterations” to perfect, which he said Ms. Taylor wasn’t to blame for. Ms. Taylor said she understood this, but she stressed that she needs to get the fund balance adjustments and cash transfers completed before the end of 2025 or else the paperwork would have to be done all over again in the new year. Mr. Walder expressed willingness to help make this happen and indicated to Ms. Taylor that “I don't want to lose you as a resource, because I think you're doing a good service for the Geauga taxpayers because you're testing a contractor's submissions. I'm not in favor of going back to having Lake submit their stuff and we barter with them, because they do it all differently than we do as well.” He said Ms. McMahan could serve as a sort of arbiter to determine whether or not financial submissions have been translated from the Lake system to the Geauga system well enough, noting that Ms. Taylor’s job is like wielding a “decoder ring” to translate between the two systems.
Mr. Hitchcock commented to Ms. Taylor: “I'm so pleased that you are there because you are going to get it all aligned. It is going to be frustrating. We will help as much as possible, but we've been frustrated for quite some time. I see now, with you, I see light at the end of the tunnel, and I'm very excited, but this next budget cycle will not be easy either, but it's going to get easier.”
The Budget Commissioners unanimously approved all of the GPH Supplemental Appropriations.
Ms. Taylor asked if the fund balance adjustments and cash transfers she’s submitted would be on the agenda for the next Budget Commission meeting on December 1, 2025. Ms. Sinatra said they would be as long as she has enough time to vet them, and she specified that all the fund balance adjustments have been switched to the newly created revenue account. Mr. Walder asked Ms. McMahan to “bird dog” (keep a close eye on) this matter and said he saw no reason why it couldn’t be on the December 1 agenda.
The Budget Commission tabled its vote on the annual millage adjustment for Geauga entities with bonds/emergency levies at the November 3, 2025 Budget Commission Meeting in order to have more time to go over the numbers.
Mr. Walder explained that the purpose of the annual millage adjustments for entities with bonds is to prevent these entities from accruing excess money from taxpayers after fulfillment of their debt payments. Observer Note: The millage of fixed-sum levies such as emergency levies also must be adjusted annually to ensure that the precise amount approved by the voters is collected. Ms. Sinatra asked if any consideration should be given to the possible abolishment of property taxes in 2026. Observer Note: Please see the October 6, 2025 Budget Commission LWVG Observer Report and the July 9, 2025 Geauga County Township Association LWVG Observer Report for more information on possible property tax abolishment in Ohio. The Budget Commissioners declined to give consideration to the possible elimination of property taxes on these millage adjustments. Mr. Walder said that “you can't make a decision on something that is yet to happen.”
Mr. Flaiz opined that property tax abolishment is problematic because, when loans are tied to the collection of property taxes, “there's Supreme Court case law that says, ‘no, they're still going to collect those property taxes to the extent that these loans are backed by these (taxes.)’” He went on to say that “you can't put a lien on Kenston High School, and you can't foreclose on government property. So the issue becomes, what the courts have said is, ‘hey, you're making a deal when you do this, and you can't go back and eliminate tax revenue that loans are based on.’” Mr. Hitchcock then asked if that meant they would still have to collect taxes that are tied to loan repayments if property taxes were eliminated. Mr. Walder said that they would still have to follow the Ohio Constitution, which would theoretically be amended to outlaw property taxes. However, he felt this situation would likely create lawsuits. Mr. Flaiz noted that this would affect not just bonds but any loans repaid using property tax money. Mr. Hitchcock said that this could include things like loans taken out by fire departments for equipment. Mr. Walder stated that some loans/bonds may be “... tied to inside millage. Inside millage is tied to valuation. If property taxes are abolished... I no longer need appraisers to appraise property because there's no property tax to collect. Then who's determining the value that we're collateralizing if I'm not doing it?”
At this point the Budget Commission focused on the millage adjustments at hand. Mr. Walder noted that the entities in question - Kenston Schools, Berkshire Schools, West Geauga Schools, and the Geauga County Public Librar y- have collaborated with the Auditor’s Office to adjust their millage “... to keep their unencumbered cash at a reasonable carryover amount.” Mr. Flaiz credited Mr. Walder with his hard work to prevent overcollection of taxes, which could have resulted in “a huge windfall,” especially over the long periods of time that bonds are repaid. Mr. Walder said he appreciated the accolades but really his staff did the work, particularly Ms. Most and Ms. Sinatra.
Ms. Sinatra stated that the proposed 2026 rate is higher than the 2025 rate because the bond payment amount is escalating. Mr. Walder noted that the 2026 rate is still well below the rate originally approved by the voters.
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2002 $45 Million Bond
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Bond Term: 27 years
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Original rate approved by voters: 4.98 mills
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2025 collection rate: 2.28 mills
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Proposed 2026 collection rate: 2.25 mills
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Proposed 2026 collection amount: $2,756,325
The Budget Commissioners observed that Kenston taxpayers have saved millions of dollars thanks to the district refinancing this bond in the early 2010s.
The Budget Commissioners voted unanimously to approve both Kenston bond millage adjustments for 2026.
Mr. Walder noted that Berkshire wanted to negotiate the 2026 rate, preferring it stay at the 2025 rate of 2.5 mills rather than the 2026 proposed rate of 2.45 mills. Mr. Walder said he was fine with that. Mr. Flaiz said he thought it should be 2.45 mills as proposed because that is what the staff’s calculations indicate is appropriate, rhetorically asking “who’s driving the bus here?” Mr. Hitchcock agreed with Mr. Flaiz, noting that the 2.45 mill rate was to the taxpayers’ advantage. The Budget Commissioners voted 2-1 to set Berkshire’s 2026 bond collection rate at 2.45 mills, with Mr. Walder dissenting.
Mr. Walder remarked that this rate was a small increase from the previous year. Mr. Flaiz observed it was still much less than the maximum rate that was approved by the voters. The Budget Commissioners voted unanimously to approve the Geauga County Public Library bond millage adjustment for 2026.
Mr. Walder pointed out that the 2025 rate for the $2.35 Million emergency levy was 0 mills because the Budget Commission suspended the collection of this levy. Observer Note: See the February 28, 2024 Budget Commission LWVG Observer Report for more information. He noted that the proposed rate of 1.86 mills would restore the full value of the levy to West Geauga, which the Budget Commission already approved doing at the district’s Budget Hearing earlier this year. Observer Note: See the February 24, 2025 Budget Commission LWVG Observer Report for details. Mr. Flaiz said that the collection rate of fixed-sum levies like this one is set to bring in the exact dollar amount approved by the voters. He asked what would happen if the collection rate is more than expected, resulting in a higher amount than approved by voters being collected. Ms. Sinatra said that the calculations for the emergency levies use a 100% collection rate, and Mr. Walder said the collection rate for West Geauga’s emergency levies is unlikely to be above 100%.
Mr. Walder noted that the proposed rate of 2.93 mills for 2026 is a decrease from the 2025 rate of 2.95, but this is not a reduction in tax because the same amount would be collected in both years ($3.7 Million). Mr. Flaiz observed that property valuations have gone up sharply: the voters originally approved this emergency levy in 2003 at 5.8 mills to collect $3.7 Million annually, and now 2.93 mills results in this same amount of money. Mr. Walder called this “classic inflation” and explained that when “... property values go up, it actually reduces your tax collection rate (millage amount)... it doesn't change your tax (amount of property tax dollars owed).”
The Budget Commissioners voted unanimously to approve both West Geauga Emergency Levy millage adjustments for 2026.
Discussion:
Mr. Walder announced that this would be Deputy Auditor Tammy Most’s last meeting with the Budget Commission, as she will be leaving the Auditor’s Office to take a position in the Bainbridge Township Fiscal Office, which is closer to home for her. All expressed that they would miss Ms. Most and wished her well in her future endeavors.
Public Comment:
This observer asked whether or not West Geauga Schools would continue receiving revenue from its two emergency levies. Observer Note: The district attempted to combine its two emergency levies into a single substitute levy on the November 4, 2025 ballot, but voters did not approve this measure. See this Geauga Maple Leaf article for more information. Mr. Walder clarified that West Geauga would continue to receive the revenue from its emergency levies until they expire. Mr. Flaiz pointed out that substitute levies are no longer allowed, so the district cannot make another attempt at passing this ballot measure. Mr. Walder added that emergency levies have also been disallowed, so West Geauga would have to convert its emergency levies to operating levies (which requires voter approval) in order to keep receiving this funding once the emergency levies expire. Observer Note: More information about the elimination of emergency and substitute levies is available here.
This observer also requested a copy of all materials from the meeting, which were received via email on November 17, 2025.
Mr. Gorton thanked Ms. Most for her service and said she would be missed.
The meeting was adjourned at 10:59 am.
Next Meeting: The next Budget Commission meeting will be a Regular Meeting on Monday, December 1, 2025 at 10:00 am in the Auditor's Conference Room, 215 Main Street, Chardon, Ohio. Virtual attendance for all Budget Commission meetings is available via Microsoft Teams by emailing an invitation request to Ms. McMahan at PMcMahan@geauga.oh.gov.
Observer: Sarah McGlone
Editor: Gail Roussey
Reviewer: Rooney Moy
Submitted: November 20, 2025
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