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Geauga County weathers tough economy
(by Joan Demirjian - May 06, 2009)
Geauga County weathers tough economy
By JOAN DEMIRJIAN
While Geauga County generally has been immune to downturns in the economy, first quarter reports from the Geauga County Auditor's Office show general revenues were down.
Still, overall, Geauga County is in a good position because of being fiscally responsible, according to Geauga County Auditor Frank Gliha. "We're in a protected bubble in this county."
Revenues are outpacing expenditures in the county, he said, but overall revenues are down from last year.
General-fund revenues were down 8.1 percent, or $687,209, compared to last year at the same time, Mr. Gliha said. But revenues from licenses, such as for vendors and cigarette sales, and permits, including those for building, were up, he said.
Some revenue categories were down compared to last year's first quarter, Mr. Gliha said. Property taxes were down 3.38 percent, or $101,824, and sales taxes were down 7.65 percent, or $234,844. Several other revenue categories were down, including interest income, which was down 37.5 percent, or $245,603.
Real estate transfers are actually up from last year's first quarter by 3.9 percent, or 28 parcels, Mr. Gliha said. Home buying and selling is still taking place, he said.
He said first-quarter expenditures were down 5.3 percent, or $405,795, as compared to the first quarter in 2008.
In summary, he said, the county's revenues for the first quarter are outpacing expenditures by 7.6 percent, or $594,796.
Mr. Gliha said the trend of lower county revenues is likely to continue with the instability of fuel prices and the weak housing market, even though property transfers are up slightly, he said.
"That is why the revenues are down and people are not spending as much," he said.
"Our rate of unemployment for the first quarter is 8 percent, which is the highest in 22 years," he said. While that is high for Geauga County, it is low compared to the rest of the state.
And as of this week, the latest information shows Geauga County ranked second lowest in unemployment, Mr. Gliha said.
The unemployment was 7 percent in April, "so people are going back to work," he said.
Even at that rate, however, Geauga County is ranked fifth lowest in the state for unemployment, Mr. Gliha said.
"Local officials and department heads are being fiscally responsible," Mr. Gliha said.
"We're not spending needlessly. We're spending wisely," he said. "Most of the county is conservative about spending," he said of townships, villages, the county and even individuals.
"All of us are working hard to be financially responsible and live within our budgets even though tougher times are still ahead," Mr. Gliha said.
"The big thing is what is going to happen to the auto industry and what does it mean for everyone," he said.
Car dealerships are laying off employees. Those people don't have the money to spend, and that impacts their communities, Mr. Gliha said.
"We are in this protective bubble, but how long can we stay that way is the question," he said.
"But we're in good shape, and it's important that the county, townships and villages continue to monitor spending," Mr. Gliha said.
"I'm very optimistic and proud of the county and the townships for remaining so fiscally responsible."
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