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Park expenses reviewed as deficit looms
(by Joan Demirjian - July 21, 2010)
Park expenses reviewed as deficit looms
By JOAN DEMIRJIAN
As Bainbridge Trustees prepare the township's 2011 budget, they will deal with a deficit in recurring income for the general fund. The general fund covers zoning, administration, parks and cemeteries.
Trustees will submit next year's budget to the Geauga County budget commission for review Aug. 17 in Chardon.
They will look at ways to fine-tune the general-fund budget, spending less, as well as attempting to increase income in the coming year, they said. Those measures could include park-user fees and future joint-economic-development district opportunities.
Trustee Matt Lynch said they have subsidized the township general fund with estate-tax investments for years.
While the township has savings in its estate-tax investment funds that have been used to cover past deficits, as well as special projects and capital improvements, that money will be running out, trustees said.
According to Fiscal Officer Cheri Measures, projected general-fund revenue for 2011 is set at $1,034,638. That accounts for less estate taxes and less interest revenue. Recurring expenses are expected to be $1,328,538 with a deficit of $293,900.
Mr. Lynch said, when the budget commission reviewed the township's budget for the last couple of years, it has not been happy. Budget commission members wanted the township to spend down reserves in estate-tax investment funds.
Now, he said, the township has significantly lower cash balances in those investment funds.
"We're going to be working to streamline our costs," Trustee Jeff Markley said. Some of the costs include maintaining and operating township parks.
Mr. Lynch said, "We are going to face continuing deficits." Revenues for the township are decreasing, he said. "We're continuing to spend, but revenues are going down. If we don't do something to cover general-fund operating expenses, we are going to have to cut."
One thought is that the township is doing things it has no obligation to do, such as parks and recreation.
Trustee Lorrie Benza said they have talked of funding parks and recreation out of the estate-tax revenues.
One possibility is to do a joint park district with Auburn Township, she said.
A levy to support parks also was suggested as a possibility to alleviate pressure on the general fund for park expenses.
Park board member Henri Preuss said township parks should be funded independently. A levy could be placed before voters, and people who want parks would vote for them.
Resident Ted Seliga said the concern is that a budget for parks never was established, and now the township is in a situation where it is running short. It should be decided what is needed in the way of parks, how they will be funded and how much will come from the general fund, he said.
Mr. Seliga said all township departments have five-year plans, and the general fund should also have a five-year plan. "It's critical," he said.
Mr. Markley said everyone wants parks, but it may take more than one township to fund and support them. "It makes sense to maintain them jointly," he said.
Mr. Lynch said, so far, there has not been a lot of thought as to how the park facilities would be operated and funded. "We are going to face a financial crisis," he said.
"We're at a deficit in the general fund if we include parks, and we will have to dip into estate taxes," Mr. Markley said.
"Park operations are the most costly. The idea brought up was a joint park district, so parks are funded by the entire community." He said that might mean working with Auburn Township on parks.
"We understand where the problems are," Mr. Markley said. Expenses for cemeteries, zoning, parks and special projects all contributed to the deficit, he said.
Other areas that have used up township funds are legal fees for defending zoning and labor negotiations expenses. Processing the township payroll and managing medical benefits are included as well, Mr. Markley said.
"We have to get our operating expenses down," he said. "It's about balancing the budget."
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