Park Board Considers Suspending Levy Collection (With Video)

August 12, 2014

The Geauga Park District Board of Commissioners is contemplating suspending a 1986 levy that currently generates $880,000 per year for the parks.

The Geauga County Budget Commission also is considering suspending a levy because the park district is sitting on close to $9 million in carryover funds, including $3 million for capital land improvement projects.

And, depending on the messenger, the park board’s action is either due to sound fiscal management or a refusal of park commissioners to succumb to political pressure.

“We had word yesterday that the budget commission, which is made up of the (county) auditor, the (county) treasurer and the (county) prosecutor, possibly this morning would try to suspend a park levy, based on the fact that the park district is rolling over too much money in their account,” Park Commissioner Brian Johnston said during an emergency meeting called for 7 a.m. Tuesday at The West Woods Nature Center in Russell Township. “I don’t understand the motive; I have my own personal idea, but I’m not going to voice that this time. It’s not to hard to figure out.”

He explained the simple reason the park district keeps a lot of money in the rollover, or carryover account is for possible land acquisitions.

“As you know, the park occasionally  falls into a very good land deal, but these deals have to happen fast,” he said. “The park district maintains a large amount of money so that we can make quick acquisitions of viable land for the park district.

“I don’t understand what’s going on with the budget commission, but we’re not going to let them undermine us and try to suspend a levy.”

Instead, the park board would take action to “temporarily suspend” collection of a 1986 levy until further notice “to protect our interest and to show that we are fiscally sound,” Johnston said.

“It’s just a maneuver, but we’re not going to have our authority questioned, whether or not we can put money away for land acquisition,” he added.

Commissioner Ruth Shumway told those gathered Tuesday the park board was agreeing to suspend the 1986 levy because the budget commission was going to rescind a voter-approved levy due to the board balancing its budget.

“They were not going to allow us to hold any money in reserves for emergencies, for land acquisitions,” she said. “We do not understand this.”

Added Johnston, “It’s never been a problem before.”

Shumway said the park board has been presented about eight different “land propositions” since January.

None of those properties, however, were what Shumway would call “a preserve or conservation area,” but rather areas where the park district would “go in and redo” in order to bring back to pristine, natural pieces of property.

“So, we didn’t feel those are what the park district needs,” Shumway said.

When asked why the board was agreeing to suspend a levy if the park district needed money in reserve for acquisitions, Johnston said, “We don’t want them to do it to us.”

He added the board has a “major acquisition” of a “beautiful piece of property” it is looking at.

“If this deal goes down, we’re going to need the money,” Johnston said.

The commissioner was asked again why suspend the levy.

“We’re not going to succumb to their political nonsense,” he said. “And that’s what this is. They want to take us on, they can take us on, but we’re appointed to do a job.”

Shortly after 9 a.m., however, Geauga County Probate Court Judge Tim Grendell told members of the budget commission the park district has more than sufficient revenues and reserves to operate at its present level of services and beyond.

“I believe that public entities should not collect taxes from our county residents when those tax funds are not needed,” said Grendell, who is responsible for appointing the three-member park board, in a one-page memorandum to the commission.

“As a matter of law, the Ohio Constitution does not allow public bodies to hoard excess tax dollars,” he said.

He also told commission members the park district would retain the authority and ability to request reinstatement of the levy collection in the future if those funds become necessary for the future operation of the parks.

Park district CFO Michele Pennell said the district has appropriated $875,000 toward capital improvement projects and as its strategic planning process unfolds, there might be additional land improvement projects added.

“We have new leadership and a new director in place, so we are looking at a strategic plan that will be finished in 2015 that may increase this $875,000 to additional funds as additional projects are determined,” she explained.

Pennell added, “Until we get the strategic plan in place and we understand what the residents of Geauga County want, what capital improvements they would like to see in our parks — as they have approved these levies — then we will go based on that to spend some of this particular $3 million carryover that we currently have.”

Geauga County Prosecutor Jim Flaiz said he is concerned about the cash balances the park district maintains and supports suspension of collection of a tax levy.

This excess cash balance is a problem the commission has raised with the park district for years, he added.

However, Flaiz asked if the park board was taking that action to suspend collection or challenging the commissions authority to do it.

“Ultimately, our authority rests in we won’t approve your budget,” he said. “So that’s where the authority would be, that you’re carrying to much money so we’re just not going to approve your budget and you can’t collect any taxes.”

Pennell said if that were to happen, the park district would go before the state tax commission and compel the county budget commission to approve money to allow the park district to operate.

Grendell then intervened and suggested the park district’s legal counsel would need additional time “to understand the mechanics of requesting a suspension of collection.”

Commission members said the park district has until Sept. 1 to submit a revised budget for approval.

“We would like the opportunity to take the time to review it and put the numbers together, and see where we are at before we come to you and say suspend it one year, five years, 10 years,” Pennell said. “We don’t know right now.”

She added the park district would be willing to examine its $5 million operating carryover but not its capital improvement fund carryover.

The commission agreed to table any action until later this month.

“Frankly, my concern, from a budgetary perspective, any fund that has a 400 percent overage from the previous year’s expenditures, that is too high,” Geauga County Treasurer Chris Hitchcock said. “I will not support that.”

And as for any major land acquisition pending, Hitchcock said it did not appear to be on the budget for 2014-2015.

“We just deal with what they present us in their budget,” added Flaiz. “That hasn’t been presented.”