News / Articles

Budget Commission

Budget Commission - Budget Hearings on 2024 Budgets - August 21-22, 2023 and August 28, 30, 2023

Meeting Details: The Geauga County Budget Commission met in Special Session for Budget Hearings on the 2024 Budget starting on Monday, August 21, 2023 at 9:00 am in the Appraisal Conference Room at 231 Main Street Chardon, OH 44024. This meeting was in person with a virtual option via MS Teams.

Observer Note: Meetings continued on Tuesday, August 22, 2023 and concluded on Monday, August 28 and Wednesday, August 30.

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

Chuck Walder except for the Russell Twp. meeting when Chief Deputy Auditor Ron Leyde represented Mr. Walder.

Staff Attendance: Deputy Auditors Tammy Most and Kristen Sinatra, Chief Compliance Officer Kate Jacob McClain (for most of the hearings but not all of them), Fiscal and Officer Manager Pam McMahon, and Frank Antenucci (ADP) (technical support for most of the meetings).

Township/City/Village Attendance - Each entity had at least one person representing them at the hearing. Those representing the entities were not identified but this Observer attempted to find out identities and include them in the report if known.

Observer Note: There were a few other pieces of regular business - approval of minutes and two amendments as noted in the report.

Public Attendance: Karen Walder, Diane Jones, and others as noted (all virtual)

Schedule: Monday hearings were as follows: 9 am - 11:45 am Lunch: 12:15 p.m. to 1:14 p.m. Afternoon session 1:15 pm - 2:30 pm. Tuesday session was 9 am - 11:35 am.

Procedural Note: Ohio Revised Code (ORC) 5705.29 lists the budget requirements including the provision to provide two previous budgets in the presentation and a detailed amount of cash carryover. The Budget Commissioners looked at the cash carryover very thoroughly and appear to have an unofficial rule that there should be 20% cash carryover at year end to provide for personnel and salary expenses for the first quarter of the year before the entity receives any tax income. Other areas that had a critical review were whether the amount of cash carryover or cash in the General Fund was a high amount based on the overall budget and based on whether the entity had submitted detailed plans for particular project(s). This resulted in several inquiries and discussions and a follow up meeting with Geauga County Commissioners and other representatives on Monday, August 30, 2023.

For each entity Deputy Auditor Sinatra read budget figures as submitted including cash reserves, expenses and amount to be certified. In addition, items reported included any special funds, such as Fire, Road and Bridge, etc. The total tax millage was reported for each entity and whether there was a levy on the ballot for November. All of these figures and information will be available in the published minutes of the Budget Commission and are only noted here if there was discussion and/or questions.

Note: All Budgets were approved (although not all unanimously) except for Geauga County, which was tabled until Monday, Aug 28, 2023 at 1:30 pm. See report for Monday, August 28 and Wednesday, August 30, 2023.

Monday Morning - August 21

Observer Note: No observers were present for this morning session; this observer reviewed a tape of the proceedings provided through a standing public records request to the Auditor’s office.

9:00 a.m. Thompson Twp. & Thompson Park - Approved Unanimously

Minutes: Approved Budget Commission Minutes for August 7, 2023, both work session and regular session.

9:15 a.m. Bainbridge Twp. - Approved unanimously

Mr. Hitchcock commented that he believed there would be more than 20% left at year-end in the General Fund. Mr. Walder said that he appreciated the work they have done in utilizing reserve funds..

Regular business of the Budget Commission - At this point, the Budget Commission approved as requested two supplemental Amendments in the regular course of business - one from South Russell and one from the Geauga County Commissioners.

9:30 a.m. Troy Twp. - Approved Unanimously

9:45 a.m. Chardon Twp.

Mr. Hitchcock was very concerned that the Budget indicated only $2,000 left at the end of the year.

Mr. Walder continued the discussion about the problems with using zero-based budgeting. He stated that the Budget Commission will work with them going forward to have a better way of putting this together. He recommended that they accept the amended Budget submitted although he said they have a long way to go.

Mr Flaiz said that there is a disturbing trend that will create a widening gap between estimated and actual ending balances.

Approved Budget Estimate - Unanimously

10:00 a.m. Burton Twp. - Approved unanimously.

10:15 a.m. Montville Twp. - Mr. Hitchcock said he was concerned about the amount of cash left at the end of the year and that the amount is growing each year. He stated that the Trustees need to spend some money or it should go back to the taxpayers.

Montville stated that there is a 5-year plan on Fire Equipment, and that they are hoping to place an order next year.

Mr. Walder asked for a reserve fund to be set up and Mr. Hitchcock agreed with that approach.

There was also a discussion about joining with another township for fire protection.

Approved - Unanimously

10:30 a.m. Claridon Twp.

Two Trustees were present, so a public meeting was opened. 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.

Mr. Walder recommended that they start a Road and Bridge Reserve Fund. He also suggested that they could voluntarily suppress a levy collection for one year. Trustees said that they will reduce the 2.3 mils levy to 1.5 mils at their meeting later that day which was applauded by all Budget Commission members.

Approved Unanimously

10:45 a.m. Parkman Twp - Participants included two Trustees, so a public meeting was opened.

Mr. Hitchcock stated that there was too much money in the General Fund and in the Road and Bridge Fund. The Fire Fund was about right in terms of the amount, but he then asked about the Road Improvement Fund. Parkman confirmed that they are shutting down the Road Improvement Fund. There was discussion about unpaved roads and the possible use of ARPA funds.

Also Mr. Walder mentioned that the Board of Revision is working on wrapping up the tax appeals and the average reduction for residents was 5.1% reduction in value. Observer Note: Mr. Walder is also a member of the Board of Revision. On July 17, 2023 - July 21,2023, the Board of Revision met to review the assessed property values for all properties in Parkman that utilize the Parkman Wastewater Treatment Plant. See Observer Report for those hearings.

Approved - Unanimous

11:00 a.m. Chester Twp.

Chester Township opened a public meeting; Trustees Craig Richter and Ken Radtke attended.

Mr. Hitchcock stated that there was only 12% ending cash balance and said that he doesn’t expect that to be the case. His point seemed to be that the budget presented was not accurate, or if it is accurate, there won’t be enough money. Mr. Walder compared Chester with other Townships and found that they rated 10th in revenue, but that they are the second largest township in the county.

Mr. Walder also expressed concern that they will run out of money, if the projection of a 12% cash balance at year end is accurate.

Approved Unanimously

11:15 a.m. Hambden Twp.

Trustees Keith McClintock and Bob Kandra were present so they opened a public meeting.

Mr. Flaiz stated that “the numbers are not attached to reality” because of large expenses including a fire truck.

Their initial budget submitted by July 20 had challenges and then a second one was submitted which shows they are anticipating spending $500,000, which will drop their ending balance to $70,000. The Budget balance changed drastically between the two submissions, a situation that occurred with only one other entity in the budget hearing process. It was noted that they appeared to be funding permanent improvements by shifting money from one fund to another. There was a question from Mr. Walder about the levy wording, to make sure it indicates that it can only be used for the purpose stated.

There was a discussion about the use of reserve funds and how to set them up.

Approved acceptance of resubmitted budget - Unanimous

Once the budget was approved to be received as a resubmission, the Budget Commission considered this resubmitted budget. Mr. Hitchcock spoke about the excess funds in the General Fund, Road and Bridge Fund, Fire Fund, and Park Fund. He said that he could not support this type of budget. He said that the Trustees should commit to a concrete plan.

Mr. Flaiz said that he applauded that they are trying to fix the issue.

Approved - Mr. Hitchcock voting no

11:30 a.m. Munson Twp.

Munson opened a public meeting; Fiscal Officer Todd Ray and several Trustees were present.

Mr. Hitchcock was concerned about the ending cash balance not being sufficient for payroll in January. He stated that they need to have budgeting that is close to the truth and to be honest with the taxpayers.

Mr Ray said that the Sherman Road project (which had been budgeted and approved) did not happen. It is just starting now.

Mr. Hitchcock said that his notes are that the Township owns the land and equipment, but that the Fire Company does maintenance.

Mr. Flaiz also said that if the levy passes, Munson Township will be first in the county in per capita expenses. After the levy it will be $265/per capita, and this doesn’t even factor in that the township is also contributing to expenses.

Mr. Walder said that he thought that they were trying to right the ship with changing from zero-based budgeting and he is not worried about it this year. It is a “hot” or “tight” budget, but he isn’t concerned.

He also recommended that there should be a capital reserve for emergencies.

Approved Unanimously

11:45 a.m. Russell Twp. (Mr. Walder recused himself from this hearing due to a conflict of interest since his wife is the Township Fiscal Officer)

Also attending were Russell Township Trustee Kristina Port; Russell Twp. Fiscal Officer Karen Walder.

Mr. Hitchcock led off questions about whether the storage shed had been built. This is a topic that he has raised with Russell Township for the last several years. The answer from Trustee Port was that they decided not to build the shed but to put that money toward a community building, to be built in 2024. Port said that Ohio Revised Code requires community engagement, which will take time.

Hitchcock and Flaiz were both skeptical about the amount projected and the time frame, and Mr. Hitchcock in particular warned them if something wasn’t built by next year he would vote to give money back to the taxpayers.

Russell Township ranks third in Budget expenses (after Russell Township and City of Chardon). Per capita, they rank first on levy funds collected.

Approval - Unanimous

Monday Afternoon Session:

Commissioners as listed above, staff as listed above with Kate Jacobs McClain attending virtually

Note: This Observer was present for these sessions.

1:15 p.m. Newbury Twp.

Trustee Greg Tropf and Fiscal Officer Bev Sustar attended.

It was noted that they have lots of money and are not willing to spend it. Mr. Hitchcock said that they need the other trustees there. He said that this is one of the worst years in the history of their submissions.

Ms. Sustar stated that there are some projects in the works. The Trustees have agreed to study a design (through Kent State) that would include improvements to Oberlin Park (permanent restrooms - $200,000). In the Fire fund, there was nothing noted above what will be needed for the renovation. Ms. Sustar also stated that the work needed for Pekin Road will be done in 2024 or 2025. They project a 5-year plan which will cost $780,000.

Mr. Flaiz stated, “This is a constant struggle. A few years ago things did get done.” He did observe that in the past the school property took up all the time and energy and nothing else was done. He noted that now that this is settled, there should be conversations about these other projects. He recommended using some money from the General fund to help with large paving projects.

Mr. Flaiz also said, “You currently have the most expensive Fire Dept in the county. “ He stated that their Road levy per capita and general fund are more in line with the rest of the county. He wanted to know if the Newbury Fire Dept. serves other townships or areas outside of Newbury.

The Trustee answered that they didn’t - just Newbury.

Mr. Walder said that if they did what they are planning, then there would be no problem. He suggested that Reserve and Capital Improvement Funds could be used.

It was discussed that they have a Fire Levy which is a continuing levy and they get $1 million every year.

Mr. Walder suggested that it would be good if they could roll back the levy after payments.

Mr. Hitchcock also said that it would be good to have a resolution about this

Approved Two Yes, one No (from Mr. Hitchcock)

1:30 p.m. Huntsburg Twp. – 2 individuals; plus Kate Jacobs McClain virtually

Mr. Hitchcock noted that in 2022, their actual cash was $79,000. He said they need to be more honest with taxpayers. It was also noted that they have two full-time and two part-time Zoning Board employees, and the year end balance of $26,000 would not be enough to make payroll. It wouldn’t pay for one month. Mr. HItchcock continued that they need at least 20% at the end of the year or at least $60,000 at year end. He said they have dangerously low ending cash balances. He noted that they have plenty of cash, but it has to be reflected in the ending balance.

Mr. Walder had one question about the capital improvement transfer. He also noted that year-end balances are low but said that usually “...in November they tell everyone to stop spending.”

Mr.Flaiz also noted that they are running “hot” (too tight at the end of year). There were no other questions.

Approved (no from Mr. Hitchcock)

1:45 p.m. Middlefield Twp. Two people attended from Middlefield Township.

Commissioners noted that there were no levies on the ballot.

Mr. Hitchcock felt there was a lot of money in the Ambulance Fund with a cash balance of over $400,000.

Middlefield officials said they have a signed contract and that they will use the money after Labor Day.

Mr. Walder asked a question about the Debt Service fund. He noted that there was $20,000 in it this year and expecting $40,000 next year. He said, “What comes out of that? I don’t see money coming out. I see money coming in. “

Middlefield’s finance person said that she had made a mistake and then the actual total was confirmed.

Mr. Flaiz said that the estimated revenue and expenses were really tight. He said it was one of the best budgets in terms of predicting.

Mr. Walder reviewed the comparative study of all townships and stated that they are squarely in the middle or toward the bottom of cost per capita.

Approved – Unanimous

2:00 p.m. Auburn Twp.

One representative present. Mr. Hitchcock stated that although the Road and Bridge fund was low, he felt that this was the best budget he had seen this year.

Mr. Walder noted a number of minor things including that the Coronavirus fund (pre ARPA) still shows money. Mr. Walder suggested having a debt fund for each major debt as it makes for an easier paper trail. He also said that they had done a lot to clean up their budget in a short period of time and that they deserved the award for the most improved budget.

Approved - Unanimous

2:15 p.m. Geauga Trumbull Solid Waste Management District

Geauga Trumbull Solid Waste representatives were Jennifer Jones, Director and Lisa Smith, Administrator.

There were no questions or comments about their budget.

Mr. Hitchcock said they are the only entity with so much cash and that it is only going to get larger.

Mr. Flaiz said they did a great job.

Mr. Walder asked if they are still seeing a reduction in recycling locations in townships?

Answer: At our recycling sites, money is used for lighting, cameras, paving, etc. They stated that a lot of the money goes towards this and it has improved the situation. There are 42 recycling sites. and they are listed on their website.

Approved – Unanimous

2:30 p.m. Geauga County

Representatives included County Commissioner James Dvorak, County Administrator Gerry Morgan, Budget Director Adrian Gorton, and Assistant County Administrator Linda Burhenne.

In the public were members of the press, and two virtual attendees including a Chagrin Valley Times reporter and one other person not identified.

It was noted on the Auditor’s slides that the Budget Advertising had not been submitted and that Schedules A and B were not submitted.

Mr. Walder stated that it’s a challenge to evaluate their budget since historically there have been large discrepancies between the estimate and actual ending balances. Despite predictions many years of having little money left, the county has had large balances including:

2017 – $11 million

2019 – $10 million

2021 – estimated $644,000; had $9.4 million

2022 – estimated $1,140,000; projected now to be over $11 million

Estimate of $148,000 for next year but will probably be $9-$12 million

Mr. Walder said the county is not really representing to the taxpayers what is in the budget since after submittal, you can’t modify post July 20 and post-approval of Budget Commission.

Mr. Hitchcock stated that every year, everyone gets treated the same and if they are “hoarding cash” that needs to be fixed. He continued, “It is Incumbent on the Budget Commission to treat the County the same. Some of the extra cash should go back to the taxpayers. My recommendation is to take some of these excess funds and return them to the taxpayers, unless there is an explanation as to why you have them.”

Mr. Flaiz said there were two issues and that Mr. Walder hit on the one. “If you say you will have a certain ending balance, and it’s 10 million off. So what are we doing here?”

Mr. Gorton said, “I explain that in the budget – with the funds summary reports that we use, it takes total budgeted revenue, plus carryover and appropriations (so) it doesn’t represent the actual cash balance, but that’s the starting balance for the budgeting system.”

Mr. Flaiz asked to look at the accumulated money; he stated that the Aging cash balance is getting “out of hand” at $2.4 million to $1.8 million; $750,000 was transferred into the senior center construction fund.

Mr. Gorton said estimates are $10 million for a new senior center building.

There was a lot of discussion about projects and their costs and how much was in various funds.

Mr. Flaiz said, “There are projects, but there is no information about what the projects are and what is being budgeted.”

Mr. Walder noted the conditions in their offices. He said they have 11 people using one bathroom. There is a dirt floor in the basement for the bathroom. He said that “this county has money but these facilities are antiquated and outdated. You would expect that from a county that doesn’t have resources.” Mr. Walder expressed another concern about the understatement of sales tax revenues, which he said will be over what was expected by $3 million.

Walder continued to point out delays in basic maintenance. He said the air conditioner in the Auditor’s office doesn’t work and pointed out other items where maintenance was requested but not done.

Mr. Walder also said that he felt that “the county was starting to use the budget as a political weapon.” He stated that it began last year. He pointed out that money was removed from the ADP staff budget.

Walder asked “How much money will be removed from this budget?”

Mr. Gorton addressed the fact that $2.4 million was not funded for the following: ADP $350,000; Court technology and sheriff $450,000 and capital improvement.

Mr. Walder said that these could be funded and still have money left over if revenue were correctly estimated.

Mr. Flaiz noted that they were planning on giving the Sheriff this money.

Another concern raised was why the department Budget Hearings held by the County Commissioners were not done ahead of the certification of the Budget by the Budget Commission?

Mr. Walder stated that every other entity doesn’t touch their budget after the Budget Commission certifies. By law they are prohibited from changing the budget. Only the Budget Commission can make changes at these hearings.

There was a long discussion about what to do with the budget as submitted and taking into consideration that the County underestimated revenue and then removed from the budget items that appeared to be necessary.

There was also a lengthy discussion about what had happened in the prior year when certain requests (like for ADP) were taken out and other entities, like the Airport Authority, got more than they requested.

Mr. Walder said that they went to the Commissioners three times to get the money. He noted that the Commissioners were giving out money before they knew the carryover. He stated that the Commissioners were “using the budget as a giant weapon.“

Mr. Flaiz stated, “ you hoard all this money and you still have a huge carryover problem.”

Mr. Walder said that he would not have a problem approving the budget “with a couple of caveats including that the county should fund requests being made so that there isn’t “weaponizing” of the budget and to preserve the integrity of this Board in the passing of the budget.” He said then if it is altered, the Budget Commission would take appropriate legal action.

Mr. Walder suggested certifying additional revenue of $3 million, which represents sales tax income.

Mr. Walder said that he would consider a motion to consider the budget and then if it gets changed after approval, he reiterated that they would take appropriate legal action.

Mr. Hitchcock said, “We want to treat all entities the same. I don’t believe we have been provided information as to how you are going to spend all that cash. Right now, as I understand it, your submitted budget ending cash balance for 2023 was $3.1 million; you actually have $11.5 million - that’s $8 million off and a variance of 300%. There’s $8 million dollars in play. In the back of my mind, I feel it is appropriate to take some of that. I agree with Mr. Walder’s strenuous concern about changing the budget after certifying. We have a process, by statute, we are all sworn to uphold the Ohio Revised Code. We will continue to do that.”

There was then a discussion of renovation of the buildings on Chardon Square and a question about where the County was in the process. Mr. Morgan stated they are in the architectural phase for the Courthouse.

Mr. Morgan said also that an architect has not been engaged for the other buildings on the Square. He thought that might happen within a year.

Mr. Dvorak said that the Commissioners haven’t talked about Phase 3 – the existing old courthouse. He said, “I get it, we have to explain our plan for the buildings and improvements. We don’t have a specific plan.”

Mr. Hitchcock said, “ If you came to us as Burton Township and said ‘We have excess revenue, we don’t have a plan or a budget,’ we would have said, “if there is no plan or budget, then money would go back to the taxpayers.”

He continued, “Until there is a plan, it is clear that the county has too much money.”

Mr. Walder – “There is no plan, but to compound that issue, there is money that people have demonstrated a need for and it has been stripped out of the budget. They might spoon feed it back after carryover, but last year not everything was funded.” He further said that they should “Fund everything that is reasonable.” He also wanted to know specifics on how the largest projects are going forward.

He advocated increasing their revenue by $3 million; and that the County should make everyone whole (fund all budgeted requests).

Mr. Hitchcock noted that they don’t have the authority to dictate to any entity to amend. After July 20, only the budget commission can amend.

Mr. Walder agreed and said that after September 1st, budgets are in cement for everyone.

Mr. Flaiz said that the only way to do this is to adjust the revenue to make it realistic.

Suggestion accepted to invite the Commissioners to a meeting on Monday to resolve the questions

Tabled: Unanimous

Tuesday, August 22, 2023

Budget Commission Hearings – Day 2 – August 22, 2023

Meeting Attendance: Prosecutor Mr. Flaiz, Auditor Mr. Walder, and Treasurer Mr. Hitchcock.

Staff Attendance: Deputy Auditors Ms. Most and Ms. Sinatra, Chief Compliance Officer Ms. Jacob (for most of the hearings but not all of them, virtual), Fiscal and Officer Manager Ms. McMahon, and Mr. Antenucci (ADP, technical support for most of the meetings).

Township/City/Village Attendance - Each entity had at least one person representing them at the Hearing. Those representing the entities were not identified but this Observer attempted to find out identities and include them in the report if known.

Public Attendance: Karen Walder, Diane Jones, and others as noted (all virtual)

Motion passed for a Special Meeting of the Budget Commission for Monday, August 28 @ 1:30 pm

9:00 a.m. Russell Park 1545 (Observer Note: This refers to an Ohio Revised Code designation of a particular kind of park. See Ohio Revised Code

The entire Board was present, so they had to open as a Public Meeting of the Russell Park Board.

Russell 1545 Park District Commissioner Chair Dennis Suhay and three other members of the Park District Board were present.

Mr. Walder questioned an item in the levy fund for land acquisition, an expenditure of $800 for accounting and other legal expenses. He wanted to know why that fund would be used for this type of expense.

The Park Board agreed to clarify this.

No one else on Budget Commission had comments

Approved - Unanimous

9:10 a.m. Chester Park

One member attended. The Chester Twp. Park Board members are: Albert Parker, Lance Yandell, Robert Somrak, Joseph Fornaro, Eugene DiFranco & Michael Colagiovanni (unclear which of these was present).

Mr. Walder asked if the Park Board publicly advertised their budget hearing and was told that it was advertised and that they would provide the information.

Mr. Walder stated, “your budget is fine; you get funding from the trustees; there is no taxpayer money directly contributed.” It was suggested that next year, the trustees should contribute more.

The Chester Park trustee stated that this year they are doing bleachers. He didn’t know how much the Trustees would give, but that they promised $10,000 for operating expenses. When projects come up, they give what is needed. This year they also got money from the Garden Club and individuals.

Mr. Hitchcock noted that the Park is used a lot and that maybe they should have a way to count visitors.

Mr. Flaiz said that this Park provides probably the best return for taxpayer money. Per capita expense figures would be interesting. The Park is planning on putting in PickleBall courts.

Approved - Unanimous

9:20 a.m. Russell Citizens Park – one person represented the Park Board

Mr. Walder stated, “I live in Russell and I appreciate the work you are doing. You are doing a lot of work on Township property for the Township trustees. You get a lot of bang for the buck.” Mr. Hitchcock noted that the anticipated expenditures are more than 2-½ times prior year.

Response: “It is a one time expense. We are working on a bridge. We are getting money from the trustees. It’s on the interurban path. We have another bridge to do also.”

Approved – Unanimous

9:30 a.m. Geauga Library

Among the four representatives were Kris Carroll - Director. It also appeared that Lisa Havlin, Fiscal Officer was present but she was not identified.

Mr. Flaiz stated, “I know you have been talking about Chardon, different ideas of improving and expanding. You probably expected a little more progress but I know the School pulled the rug out from under you.”

Observer Note: The original plan for expanding the Chardon branch was to utilize a playground area that is adjacent to the current library. The Chardon Board of Education voted not to permit this option. See Observer Report for 7/18/2023.

In Mr Flaiz’ opinion, if the Library would be able to do all of this and not increase taxes, that would be good for the taxpayers. He noted that they have a lot of money but hope that they are further along in the process.

The Library staff responded that they have a hard deadline of November 1st to make a decision on how to proceed on the expansion in Chardon.

Mr. Flaiz stated his hope that they can work with community partners to get this done.

Mr. Hitchcock stated that he hoped they would redouble their efforts to stay on the Square as it is important to the community. He thought that perhaps the public could be a supporter.

Mr. Wader expressed his appreciation that they are working hard to consider the public use of libraries and the pocket book. He stated that he didn’t have any specific issues with the budget. He noted they have a lot of money but they have a plan which the Budget Commission appreciates.

Mr. Hitchcock noted that the interest rate is friendly and the Library is making a lot of money. He stated: “Let’s put that money to work.”

Mr. Flaiz suggested that outside of his official capacity, he is happy to talk with people about space on the Square.

Mr. Walder agreed that just the county offices can’t keep the Square alive.

Library: The Library Board priority is to do the best we can to be on the Square. They stated also that there has been good progress in the last two weeks. They will reach out to the community. They said they appreciated the support of the Budget Commissioners.

Approved - Unanimous

9:45 a.m. City of Chardon

Two City representatives Randy Sharpe, City Manager, plus one other person. It appeared that this person was Mark Iacofano, Finance Director, but he was not identified. Also present was a Maple Leaf reporter (virtually).

Mr. Hitchcock said that normally small cash-ending balances would “get me going” and that typically you would want 20%; “Your balance is 6%; but because of the revenue stream, I’m not upset.”

Mr. Walder said that using the standard metric, the ending balance is too low. He noted that he recognized that the City has a salary fund that will carry them over. He said that city budgets are very well done and acknowledged that the Budget Commission is less expert at looking at city budgets.

Mr. Flaiz – no issues

Approved – Unanimous.

After the approval, the Budget Commissioners all offered strong recommendations that the Library stay on the square. Observer Note: See the July 16 Observer Library Report regarding issues with the Library trying to find space for expansion on Chardon Square.

Note: for the next six hearings, this Observer obtained information through a recording.

10:00 a.m. Burton Village

Mr. Hitchcock questioned the Road fund, as to what they were saving money for in that fund.

The Village representative stated they had some roads in horrible condition that will need repair.

Mr Walder didn’t have any objections to the Budget. He discussed in detail the rankings that he had put together on cost per taxpayer. He stated, “Each person in your village pays $295 for those components and you rank 12 out of 21”. He further said that the highest was Russell Township at $707 per person and the lowest was Middlefield Village at $145 per person.

Approved - Unanimous

10:15 a.m. Aquilla Village

Mr. Hitchcock stated, “We’re not talking about a lot of money.” He also noted that they have a lot of cash in the General Fund. He said they could fund expenses for 2 years. He stated that the Budget Commission is trying to treat all entities the same. He said that typically estimates are lower than actual funds at year end and that the Village has a lot of money. He asked if perhaps there is a planned project to be paid out of the General Fund?

Mr. Walder said that their true ending balance is up. He acknowledged that they did have a change to the fiscal side. He said, “I don’t disagree that entities often over estimate expenditures but I don’t see that in your budget. I’m not concerned and I appreciate what you went through when you changed fiscal officers. I encourage you to develop a new pattern.”

Mr. Flaiz noted a couple things. He said that he agreed with Mr.Hitchcock that cash balance is high, but on the flip side, he felt that they are one catastrophic event away from having no money. He noted that they don’t collect an income tax, unlike other municipalities. Looking at their revenue per capita, they are ranked last.

Walder stated that they are 18 out of 21- $160 per person.

Mr. Flaiz - “I think that is misleading - you don’t collect income tax. I’m not concerned about cash carryover because you need money for a catastrophic event.”

Mr. Walder asked about their ARPA fund.

The Fiscal Officer replied that they have some ARPA funds. They intend to use them for improvements in the Park such as expanding parking, and for a picnic area.

Walder said he understands they did not elect to take CARES ACT funds, but that they have to follow the ARPA fund rules.

Approved - Unanimous

10:30 a.m. Burton Public Library

Mr. Walder: There was a post-July 20 modification. Mr. Walder said he vetted that and recommended accepting the post-submission as it corrected some anomalies.

Mr. Hitchcock asked if it changed the ending cash balance.

Mr. Walder said, “I was presently shocked that the second submission was just as recommended. So I suggest we approve the second submission.” Burton Public Library had to go back to their Board to approve it because the Berkshire Board of Education had to approve this. This was done and resulted in the second submission that was approved.

Approved - Unanimous

10:45 a.m. West Geauga Recreation District

Mr. Flaiz noted, “Nobody does more with less than you. This is a great park. For the money you get, you give everybody their money’s worth.”

Approved - Unanimous

11:00 a.m. Middlefield Village & East Geauga Fire District

Mr. Hitchcock stated that in the Ambulance Fund, the cash balance would be $0 but the Fire District balance is too high.

The answer was that this is the final year of levy; expenses will go up every year, but the levy is the same. Officials promised to talk to the Council to see if they can skip one year of collection. This is already a reduced amount.

Mr. Hitchcock said “It will be decades before you spend this down.”

A Trustee stated, “We won't collect next year”

Mr Walder suggested, “You could do a one year suspension.”

Motion to suspend collection for one year.

Flaiz said he agreed because they have not demonstrated they will cut it down.

Motion Passed - one year suspension of Fire District levy

Middlefield Village response was that they are collecting less now and that there isn’t an issue with suspension for one year.

Turning to the Middlefield Village budget, Mr. Hitchcock said, “you should have 20% of ending cash, but it is low.”

Mr. Walder said that if they make a change to suspend collection as discussed above, it could be approved by the Budget Commision next week.

Approved - Unanimous

After the Approval vote, Mr. Walder talked about the comparison chart that he had generated for all townships, villages and City of Chardon. He said that taking out enterprise funds and police, Middlefield Village is the cheapest per capita at $145 per capita.

11:20 a.m. South Russell Village

Mayor Dr. William Koons, Council member Dennis Galicki, and the Fiscal Officer attended.

Mr. Hitchcock stated that his only concern was that the estimated ending cash balance was too low. He said that their regular process is to have a low ending. He reminded them that the Budget Commission recommends that the budget show 20% at year end.

Mr. Flaiz addressed the Fiscal Officer saying “...nobody in our county does a better job.”

There was a discussion about funding for Bell Road and how much they are getting from NOACA.

Mr. Walder reviewed comparative statistics. Comparing township to village, trying to normalize by taking out Enterprise funds and police (because most townships don’t have police). Shows per capita how your budget ranks. He said that South Russell Village ranks 4th. Mr. Walder went on to say that this comparison is still a little misleading because the Village has no income tax. He said that the more relevant statistic is that South Russell Village is about in the middle (9th) population-wise. “You are in the middle of the county in population. You're costing taxpayers $246/person, well under the most expensive per capita.”

Approved - Unanimous

Note: Observer present for Geauga Park District

11:35 a.m. Geauga Park District

Geauga Park District staff included John Oros, Executive Director; Dawn Sweeney, Finance Director; Matt McCue, Deputy Director, and also Park Commission President Howard Bates

In the public - Barb and Dave Partington from Protect Geauga Parks.

(Also attending virtually, additional representatives of Protect Geauga Parks.)

Mr. Hitchcock pointed out the $91,00 Land Acquisition Fund which showed no revenue. He asked where the money came from?

Ms. Sweeney said that account 4901 was closed (capital reserve) and this was transferred into Land Acquisition.

Mr. Flaiz said that his only issue was that the estimated beginning balance was $81,000, which was not enough for year end. However, he said, “ I think the budget is being done 10,000% better, so I actually think you are trying to right the ship. You are showing an estimated balance for next year over $1 million, that’s progress. Looks like you have taken action and will hope to see this trend again next year.”

Mr. Walder also said that he is grateful that ”we have gone 12 months dealing directly with the staff.”

Approved - Unanimous

Public Comment:

Observer Note: During the public hearings on Monday and Tuesday there was no public comment solicited or given as is normal during a hearing. The meetings on Monday and Tuesday were not hearings and so at the end of each of these meetings, Mr. Walder asked for any public comment.

Monday, August 28, 2023 @ 1:30 pm at the Auditor's Appraisal Conf. Room - 231 Main St., Chardon

Purpose of Meeting: To meet with Geauga County Commissioners

Meeting Attendance: Prosecutor Mr. Flaiz, Auditor Mr. Walder, and Treasurer Mr. Hitchcock.

Staff Attendance: Deputy Auditors Ms. Most and Ms. Sinatra, Fiscal and Office Manager Ms. McMahon, Chief Compliance Officer Ms. McClain, and Mr. Antenucci (ADP).

Others in Attendance: Mr. Tim Lennon, Geauga County Commissioner, Mr. Morgan, Geauga County Administrator, Mrs. Burhenne, Deputy Geauga County Administrator and Mr. Gorton, County Fiscal Administrator. In the public, Ms. Carolyn Brakey, Geauga County Health Board President, and members of the press.

Meeting began at 1:30 pm.

Motion to set a special Meeting for Wednesday, August 30, 2023@ 9 am

Geauga County Budget - This meeting was a continuation of the The Budget Commission meeting from August 21st. At this prior meeting the Budget Commission took action to approve increases to the revenue on certain line items on the BOCC budget. The goal was to get a more realistic number of how much cash was being carried over and to provide funds for unfunded department budget requests (see above). There were no County Commissioner meetings between the August 21st meeting and this meeting, but the County presented a plan to increase budgeted tax revenue from sales tax and interest as had been requested by the Budget Commission. The Budget Commission on August 21 had also requested that the BOCC change their timeline for departmental budget hearings so that they are held before the State deadline to submit budgets and to agree not to change their budget after certification.

Mr. Gorton stated that the additional revenue will be used to fund those items requested by departments (Building Department, Board of Elections ) that were not included in the 2024 Budget

Mr. Morgan also said that he would provide the Budget Commission with a timeline of when projects in and around the Square would be started and completed.

Mr. Walder stated that the process for the county budget process is flawed. He said “We’ve just been given the schedule for the September hearings, after the Budget was advertised to the public, submitted to the Auditor and then after all that there are budget hearings.”

Mr. Lennon stated that he would like to establish a new timetable so that the department budgets are reviewed prior to the July 20th budget submissions to the Budget Commission.

Mr. Walder said that even if the earlier hearings were for big ticket items, that would help.

Mr. Flaiz brought up the request from the Sheriff for new cars that was stripped out of the budget. Mr. Gorton said that there were other items that had been removed.

There was a long discussion about allocating money for buildings and improvements to current buildings that have numerous and serious issues from not being maintained. Budget Commission members advocated for a project manager.

There was also discussion of the need for (and plans for) a new senior center and a Juvenile Center plus repairs to the buildings on the Square.

Mr. Lennon also said that they were looking at vacant property in the city of Chardon.

Actions: Budget Commission approved the increase in County revenue forecasts for the current year, which will then impact their estimated cash carryover beginning balance for their 2024 Budget. The Budget Commission also took action to increase the revenue on certain line items on the BOCC 2024 budget. The goal of these actions was to get a more realistic number of how much cash they are carrying over that will be available in 2024.

The Budget Commission also requested that the Commissioners provide a timeline for projects that have been discussed and to change their budget hearing process to better align with the deadlines of the State so that department budget hearings (especially in regards to big ticket items) would be held before the July 20 deadline.

Middlefield Village - Budget Commissioners signed the re-submitted budget for Middlefield Village because after their hearing last week, they voluntarily reduced their levy and re-submitted.

South Russell - increased Capital Project Fund - approved certificate

Geauga Park District - It was reported that the Geauga Park District clarified a Fund that had been rescinded. It was never in the 2024 Budget, but appeared in a comparison.

Public Comment: Amy Patterson, Maple Leaf - Requested a summary of the meeting and also made a public records request for the timeline of capital projects if the County provides one. Mr. Walder promised to send it.

This Observer also asked for this summary and asked whether there was any assurance from the County that they would fund the department requests that were previously not funded due to a stated lack of funds. Mr. Walder responded that this was correct but that it was assumed that now that there were funds in the budget due to the increase in Revenue that these would be approved.

Anasasia Nicholas- Chagrin Valley Times also asked for the Summary.

Wednesday, August 30, 2023 @ 9 am Auditor's Office, 215 Main St, Chardon OH

Meeting Attendance: Prosecutor Mr. Flaiz, Auditor Mr. Walder, and Treasurer Mr. Hitchcock.

Staff Attendance: Deputy Auditors Ms. Most and Ms. Sinatra, Fiscal and Officer Manager Ms. McMahon, Chief Compliance Officer Ms. McClain, and Mr. Antenucci (ADP).

Others in Attendance: Sarah McGlone, LWVG, members of the press

Bainbridge Township - Approved an increase in their EPA Fund

Geauga County

There was extensive discussion of the Geauga County budget, as amended by the Budget Commission. The County had increased revenue for 2023, and the Budget Commission had certified this revenue at a prior meeting. At this meeting, they revised revenue for 2024. As stated at this meeting, the original ending balance projected by the County had been $341,000, which appeared to be grossly understated as discussed by all three Budget Commissioners. The revised budget is projected to have a balance of over $7.7 million.

Mr Hitchcock said that this was the first time that the Budget Commission had to establish a budget for the County and he didn’t want this repeated. He said that this should be a serious warning to the County to be more transparent.

Mr Flaiz said that he would approve this revised Budget, while acknowledging that the Budget submitted by the County with the $341,000 ending balance was “insulting to taxpayers.”

Mr. Walder, who ultimately voted against even the revised budget, reviewed the reasons for his no vote as follows:

The budget they had submitted didn’t inform the public about what was planned or how much actual money was available.
Mr. Morgan, County Administrator, made no substantive comments during the meetings and made no promises that procedures would be different in the future.
Mr. Morgan also had convinced the Commissioners to initiate a lawsuit against ADP, Mr. Walder and two staff members, and had tried (through the Ohio legislature) to downsize the role of ADP and/or have it eliminated.
Mr. Morgan had stripped the ADP budget of staff positions after the budget had been approved last year.
There was no proof of planning for the $36 million for projects even though that had been requested at the meeting on Monday, August 28, 2023 and should have been included with the budget submission.

Mr. Walder further stated that if need has been presented (for the projects) “that you need to articulate a plan and present it to taxpayers.”

Mr. Hitchcock reiterated that going forward, they will be very carefully monitoring these monies as they are taxpayer monies. He also stated that he wanted to see them start the courthouse within 7 months.

Motion approved for revised Budget (with Mr. Walder voting no)

Mr. Walder also reviewed that there is a re-evaluation of real estate in process in the county that will increase property values by up to 30%, which will increase income to the County.

Public Comment

Mr. Walder asked for public comment.

LWVGeauga Observer Sarah McGlone asked who else was on the video call. That information is included in the meeting participants above.

News / Articles

Budget Commission

League of Women Voters of Geauga