Geauga Park District to Appeal Tax Cut of $1.9 Million
The Geauga Park District Board of Commissioners voted Sept. 13 to appeal the loss of $1.9 million in property tax collection for 2022 determined by the Geauga County Budget Commission in August.
The Geauga Park District Board of Commissioners voted Sept. 13 to appeal the loss of $1.9 million in property tax collection for 2022 determined by the Geauga County Budget Commission in August.
After an executive session Monday morning with two attorneys at the end of their monthly meeting, the board voted unanimously to appeal the ruling made by the budget commission at its Aug. 16 annual budget hearing.
“We believe we should have been given the opportunity to resubmit,” GPD Executive Director John Oros said Sept. 14.
The board had 60 days to appeal the budget commission’s ruling to the Board of Tax Appeals in Columbus, he said
On Aug. 16, the commission reviewed the park district’s budget, received July 14, which did not include about $1.9 million in property taxes the district expected to collect in 2022.
Commission members decided if the district didn’t have that amount in its budget, the funds are not needed for 2022 and they passed a resolution that decreased the amount to be collected in 2022 by $1.9 million and approved that version of the park district budget for 2022.
The park district’s budget is about $8 million. The commission reduced a 1-mill levy to 0.4 mills, so less would be collected from property owners next year.
When Oros, attorney Jon Oebker and park district Treasurer Mike Frederick tried to resubmit an updated budget on Aug. 27 — the date on which the budget commission heard three other entities’ resubmissions — commission member Jim Flaiz, said the Ohio Revised Code does not provide a mechanism to reopen a hearing on an already approved budget.
Geauga County Auditor Chuck Walder, also on the budget commission, said the commission had not received a request from the district for a second hearing far enough in advance to post a legal notice.
To allow the hearing would have been a violation of the Sunshine Laws, he said.
When contacted Sept. 14, Walder said he believes the board can appeal the budget commission’s action to the State of Ohio tax commissioner and may also pursue other remedies.
“My understanding is the process is lengthy. I do not know what they believe their basis of appeal is,” he said.
The reason given in August for not including the $1.9 million in the district’s 2022 budget was an accounting error which Walder said might not have happened if the district was using the county-approved Unified Accounting Network program instead of a spreadsheet.
At the park district board meeting Sept. 13, Oros said the accounting department has converted to the UAN system.
Park District Commissioner Pat Preston congratulated Oros and his staff for acquiring more than $1 million in grants, adding the budget commission wants the park district to have less money and property.
“We need to know how much carry-over is allowed,” he said. “If we go to the budget commission next year and we have collected all this money, what should our position be? How much can we keep for a rainy day fund and investments?”
He and Commissioner Howard Bates questioned Frederick about the shift to the UAN program.
“I think we need to understand this a little better,” Preston said.
He also recommended the district consolidate its accounts with Middlefield Bank if its interest rates are lower and questioned a check written from the district to itself for $420.
Frederick said those are the credit card fees.
“I will explain after the meeting,” he said.
Preston went on to ask about other checks to Cleveland State University (research grants), Direct Marketing Solutions (newsletter postage) and American Athletics LLC (Veterans Legacy Park playground equipment).
He requested that future vouchers presented to the commissioners include the reasons for the expenditures.
